Slow and steady may not win the artificial intelligence race – not at the speed this technology is showing.
A recent study tracks the “impact rate” artificial intelligence implementations are having on companies, and it makes for good reading, especially if you’re a corporate finance executive.
Deloitte’s “The State of Generative AI in the Enterprise” surveyed 2,8000 director/C-suite decision makers across six business sectors globally. “While respondents have a range of self-reported levels of Gen AI expertise, all are experienced with AI and are piloting or implementing Gen AI in their organizations,” Deloitte reported.
In it, Deloitte suggests AI is a hot potato in the hands of company leaders who realize AI is a ground-breaking technology but aren’t sure what they should do with it.
A case in point.
Just 25% of executives say their companies are “highly” or “very highly” prepared to address governance and risk issues related to Gen AI adoption. Less than half say they’re actively training employees on how to get the most out of AI tools.
Still, most executives surveyed have high hopes for their AI investments, with 79% noting that Generative AI tools and applications will lead to a significant productivity and profit payoff within three years.
“We’re in the early days of a major technological transformation with Gen AI beginning to drive a wave of innovation across industries,” stated Joe Ucuzoglu, Deloitte Global CEO. “The speed, scale, and use cases of Gen AI are breathtaking. Business leaders are under an immense amount of pressure to act, while ensuring appropriate governance and risk mitigation guardrails are in place.”
Taking the “Tactical” Route
While those same executive are taking a bullish long-term view, most of those surveyed say that, right now, they’re taking a more “tactical” approach with their current AI menu. Tasks like text and code generation. These areas should lead to “improved efficiencies” and “cost reduction,” C-suite leaders told Deloitte.
“Areas considered more strategic (and more long-term), like encouraging innovation (29%) and uncovering new ideas and insights (19%), are currently a lower priority,” the study noted.
A shortage of skilled staffers on hand is another challenge.
Just 22% of executives say their companies are “highly” or “very highly” prepared to address talent-related issues related to Gen AI adoption. “In fact, respondents cite lack of technical talent and skills as the biggest barrier to Gen AI adoption,” Deloitte noted.
Furthermore, executives with some seasoning in the AI sector are much more likely to emphasize training first and usage second with their artificial intelligence.
“Only 47% of organizations agree that they are sufficiently educating their employees on the capabilities, benefits, and value of Gen AI,” Deloitte stated. “Early Gen AI experts, however, are much more likely to focus on educating and reskilling their workforce and to focus on recruiting and hiring technical talent to drive Gen AI initiatives.”
Overall, 74% of executives tasked with technology implementations and with “very high” Gen AI expertise say they are educating their workforce. Compare that to 27% of respondents with “some” expertise” doing the same thing.
The Horse is Out of the Barn
Those figures support the rising sentiment with companies that, like a racehorse already galloping away from the barn, AI is way ahead of its user base, and few executives feel comfortable about that reality.
“Today, Gen AI is at an inflection point where organizations are just beginning to recognize its potential but are yet to see it as a growth catalyst for business,” said Deborshi Dutt, artificial intelligence strategic growth offering lead at Deloitte Consulting LLP. “Organizations need to consider Gen AI in conjunction with other AI and technology tools to drive business growth.”
How can executives get that job done? It won’t be easy, but they’ll have to get up to speed on AI risks and rewards and do what they can to stay abreast of what’s happening with the technology.
“To help accelerate their path to Gen AI value, organizations should start to reimagine and reinvent how they conduct business to stay ahead in this transformative landscape while managing risks appropriately,” Dutt said. “This will require increased collaboration across organizations to foster trust in the responsible and widespread adoption of Gen AI, and a strong focus on education and reskilling people for how this technology is expected to alter how we each work, learn and collaborate.”
Brian O’Connell, a former Wall Street bond trader and best-selling author, is a prominent figure in the finance industry. With a substantial background as an ex-Wall Street trader, he has authored two best-selling books: ‘The 401k Millionaire’ and ‘CNBC’s Creating Wealth’, demonstrating his profound knowledge of finance and investing.
Brian is also a finance and business writer for esteemed national platforms and publications, including CNN, TheStreet.com, CBS News, The Wall Street Journal, U.S. News & World Report, Forbes, and Fox News.
