As generative AI carves out a niche in tech, business leaders are pouring in sentiment ranging from optimism to anxiety, as a recent survey conducted by business consultancy KPMG US revealed. increase.
The majority of executives anticipate significant AI-driven changes in their businesses, with KPMG summing up their view on the expected “massive impact” across the industry, but not ready to implement it any time soon. swaying. KPMG surveyed 300 executives and senior executives globally, 225 of whom are based in the United States.
The survey revealed that 65% of 225 U.S. executives expect generative AI to have a significant impact on their organizations over the next three to five years. Interestingly, however, 60% of him in the same group confessed that it would still be a year or two before the first generative AI solution was implemented.
Despite the rapid entry of AI into the enterprise conversation, it is clear that organizations face potential challenges in keeping up with it. Less than half of those surveyed believed they had the right mix of technology, people, and governance to successfully deploy generative AI.
“CEOs and board members must personally invest their time in understanding generative AI and demand the same from their teams,” said KPMG National Managing Principal, Advisory. Atif Zaim said. He argued that understanding generative AI should be the duty of his CEO and board of directors.
But despite the hype, a whopping 68% of executives admitted they lacked a central organization or team dedicated to leading generative AI implementations. Current efforts are primarily driven by the IT department.
Barriers to adoption are primarily cost and lack of a robust business case, followed by concerns around cybersecurity and data privacy. The latter concern caught the attention of his 81% and his 78% of respondents, respectively.
The primary findings of this study reveal an interesting contradiction. Executives see generative AI as a catalyst for productivity, work transformation and innovation, but nearly half believe it can also negatively impact organizational trust if not properly managed.
It is clear that the attitudes of each sector towards AI are very different. Nearly 71% of respondents in Technology, Media and Telecommunications (TMT) and his 67% of executives in Healthcare and Life Sciences (HCLS) feel generative AI is appropriately prioritized in their sector. I’m here. In contrast, only 30% of him in the consumer and retail industries share this view.
The survey also shows that a mature and responsible AI governance program is not in place, with almost half of organizations intending to build one but not yet.
The advent of AI will also usher in a shift to a hybrid workforce that blends human skills with generative AI. Respondents across all industries are optimistic about AI’s potential to improve productivity (72%), transform work dynamics (66%) and foster innovation (62%). However, they remain acutely aware of the potential downsides, with some concerned about reduced social interaction (39%) and increased mental health issues due to job insecurity (32%).
This dichotomy is not unique to this study. This mirrors trends seen in other research highlighting widespread concerns about AI’s encroachment into sensitive areas such as human resources, privacy, and potential turnover.
Overall, despite executives recognizing the transformative potential of generative AI, they are still grappling with the major hurdles to its adoption: a clear business case, the right technology, talent acquisition, and governance. increase. As AI evolves, there is an urgent need for rapid adoption, while the emphasis is on responsible and ethical adoption.
The KPMG US findings reflect the broader narrative of the relationship between generative AI and business. As companies navigate the benefits and challenges of this transformative technology, the journey promises to be as important as the destination.
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