According to a recent KPMG study, generative AI has emerged as an investment priority for CEOs, despite the risks involved. The survey results reveal that CEOs continue to invest in AI technology because they believe it will improve their competitiveness.
This comes as generative AI technology continues to gain recognition and companies across sectors are evaluating the potential that generative AI can bring to their operations.
Bullish view on generative AI
The KPMG 2023 Outlook survey of 1,300 CEOs of the world’s largest companies reveals that political uncertainty and geopolitics are weighing on business growth and are seen as the biggest risk. Became. These concerns appear to be specific to 2023, as it wasn’t even in the top five in 2022.
But CEOs are optimistic about generative AI. It has become a top investment priority for most businesses because it can improve customer experience, drive revenue growth, and optimize costs.
According to the report, about 70% of CEOs They agree that generative AI remains high on their priority list and strongly believe that it will deliver a return on investment within the next three to five years.
Bill Thomas, Global CEO and Chairman of KPMG International, said: “Business leaders are facing challenges ranging from geopolitical uncertainty and politicization to rising stakeholder expectations in the ESG space and the adoption of generative AI. “We are facing challenges and obstacles to growth on many fronts.”
Research shows that companies are investing heavily in generative AI to harness its transformative power and stay ahead of the competition in a harsh business environment. Despite the challenges, 52% of CEOs surveyed are confident that these investments will begin to yield positive results within three to five years.
“What I find encouraging is that, despite the many macroeconomic and geopolitical challenges currently present, global confidence in the medium term remains relatively strong. There is a consensus that we can get back on a path to long-term growth,” Thomas said.
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There are also concerns
CEOs have expressed a desire to push AI into their investment agendas, but not with reluctance. They cite ethical concerns as the biggest challenge when implementing generative AI in business. Although generative AI has received support from all walks of life, it has also been criticized for several reasons. This includes all forms of bias against minorities, in addition to potentially being manipulated to create malicious content.
Apart from ethical concerns, implementation costs came in second at 55%, and lack of clear regulations and technical capabilities came in third at 50%.
Lisa Heneghan, Global Chief Digital Officer, KPMG International, said: “Generative AI is receiving increasing attention in boardrooms, and leaders are exploring its potential and how to implement this technology into their business strategies. I’m trying to understand it more deeply.”
“The challenge is to spend money in the right places, with the right skills, and make the most of the opportunities that come with it. AI is definitely the moment of the modern internet.”
Despite concerns about job losses due to AI, experts urge companies to adopt the technology to stay relevant.
Heneghan therefore emphasized the need for businesses to adopt “responsible and robust AI frameworks” while harnessing the power of technology to “truly unlock value for businesses, employees and wider society.” did.