Part 3: The rise of generative AI

The rise of
generative AI

AI continues to be a significant consideration on the C-suite's agenda, with the risk and rewards of widespread adoption a hotly debate topic.Looking at where companies need to bolster their talent, it was clear that recruiting staff with AI skills was a major priority, although this varied significantly between markets. Overall, 62% told us that they were prioritizing hiring AI experts to capitalize on the advancements of AI technology in the business world. The results ranged from 75% and 68% in the US and Germany to 54% and 48% in the UK and Netherlands.

Despite being listed behind several other talent pain points, AI remained a concern, with 49% agreeing it posed a direct threat to their organization. Once again, it was CEOs that stood out from the rest of the boardroom, with 56% labelling AI as a direct threat.Geographically, the highest proportion of respondents labelling AI as a direct threat was the US with 57% agreeing, compared with 49% in the UK, 43% in Germany and only 35% in the Netherlands.
Interestingly, the larger the business, the more they considered generative AI a threat; a case perhaps of larger organizations feeling more vulnerable because they have explored the issues and have a clearer understanding of the threat. They may also view themselves as a higher risk target if they are larger and better known.Our research showed some serious concerns around a lack of tech innovation within the business, with 44% of respondents saying they felt they were falling behind. This concern was most prevalent in the US where it was selected by 50%.

Broken down by job title, we discovered that 54% of CEOs perceived they were falling behind when it comes to innovation, compared to just 38% of tech leaders. This could suggest that although tech leaders and CEOs were largely aligned about the threats and opportunities facing their organizations, tech leaders have yet to fully translate this into business confidence in their strategies. On the whole, generative AI stood out as the second biggest focus for the boardroom behind cyber across a number of areas, with overlap around the rise of AI-powered cyber attacks. Over a third (34%) of the boardroom were keen to learn more about generative AI’s implications on their business moving forward, while both tech and non-tech teams felt it was their second biggest current challenge. From the survey of our focus group, generative AI overtook cyber security at the top of the list, while robotic process automation (RPA) and machine learning were also high on the agenda. Around a fifth (19%) of organizations expressed the need to bolster AI skills specifically around the business application of artificial intelligence to maximize its benefits and mitigate the risks. When it came to whether leaders felt their government is handling the rise of AI well, there was a large disparity between the US, where 66% answered in the affirmative, and the UK, where only 40% agreed.

“With 57% of US respondents seeing AI as a direct threat to the business, higher than the other featured countries, are US businesses more switched on to this very real issue than their European counterparts? If so, there’s a lot of work to do to get the systems, processes and people in place to address it, with half also feeling their businesses are falling behind on tech innovation. That’s why it’s up to tech leaders to ensure their counterparts across the organization fully understand the importance of generative AI and its implications for the business.”

John Altieri, Associate Director, Technology

What we're hearing…

“AI does not mean automatic innovation. It doesn’t come for free, and isn’t a quick, easy way to remove problems. They will still be there unless it’s part of a strategic roadmap and cohesive ecosystem.”

Georgina Owens, CTO, William Hill

“Access to developing new technology has become democratized. Anyone can create an impactful product, whether they’re a lone technologist or part of a team in a large corporate. The biggest risk is that AI becomes a distraction and stops people focusing on their strengths to solve problems and create solutions that are in line with business objectives.”

John Sillitoe, Director of the Genomic Surveillance Unit, Wellcome Sanger Institute

“While AI is recognised for its potential to drive business innovation, there is also a palpable concern about its disruptive effects on traditional business models and employment. The strategic focus on recruiting AI experts, particularly in the US and Germany, illustrates the urgency to harness the capabilities of AI responsibly and effectively.”