Generative AI continues to make waves in the technological world, stirring a mixed bag of emotions among business leaders, as demonstrated in a recent survey conducted by business consultancy KPMG U.S.. While most executives foresee substantial AI-driven changes in their respective industries, their readiness for immediate adoption remains uncertain.
The study reveals that 65% of U.S.-based executives predict a significant impact of generative AI on their organizations within the next three to five years. However, 60% of the same group concede that they are still a year or two away from launching their first generative AI solution. This discrepancy highlights the existing challenges that organizations face in keeping up with the rapid progress of AI technology.
Interestingly, less than half of the surveyed executives believe they possess the ideal blend of technology, talent, and governance needed to successfully implement generative AI. KPMG National Managing Principal, Advisory, Atif Zaim, argues that understanding generative AI should be a top priority for CEOs and board members.
In contrast, an astounding 68% of executives admit that they lack a central entity or team responsible for guiding the implementation of generative AI. Instead, the primary drivers of current efforts are IT departments.
The main barriers to adopting generative AI are costs and the absence of a solid business case. These are followed closely by concerns about cybersecurity and data privacy, which are-shared by 81% and 78% of respondents respectively.
Although generative AI is seen as a catalyst for productivity, work transformation, and innovation, nearly half of the interviewed executives believe it can also have a negative impact on organizational trust if not managed properly. This highlights an intriguing paradox in the industry’s perception of AI.
Sectors’ attitudes towards AI vary significantly; while 71% of tech, media and telecommunications (TMT) respondents, as well as 67% of healthcare and life sciences (HCLS) executives, feel their sectors have prioritized generative AI, only 30% in consumer and retail share this view.
Furthermore, the survey indicates a lack of mature, responsible AI governance programs. Approximately half of the participating organizations plan to establish one, but have yet to do so.
The emergence of AI also signals a shift towards a hybrid workforce, combining human skills with generative AI. While respondents express optimism about AI’s potential to boost productivity (72%), transform work dynamics (66%), and drive innovation (62%), they also remain aware of its potential downsides, including reduced social interactions (39%) and increased mental health issues due to job insecurity (32%).
This dichotomy is not unique to the KPMG U.S. survey, as it mirrors trends observed in other studies addressing concerns about AI’s intrusion into sensitive areas like human resources, privacy, and job displacement.
In conclusion, despite acknowledging the transformative potential of generative AI, executives grapple with considerable obstacles to its adoption, involving business case clarity, appropriate technology, talent acquisition, and governance. As AI continues to evolve, the emphasis on responsible and ethical deployment becomes as critical as the need for swift adoption.
Source: Decrypt
