The advent of generative artificial intelligence (GenAI) brings both disruption and chances for growth in various industries. Companies are investigating how this technology can enhance business value, boost efficiency, and introduce new products, services, and business models. As business leaders navigate decisions about integrating GenAI into their enterprises, staying informed about its adoption is crucial.
Addressing Generative AI Preparedness on Risk and Governance Issues in Business
When dealing with generative AI preparedness in terms of risk and governance, it's not just another technology. The main challenge is how to harness the power of artificial intelligence (AI) while maintaining control over it. The fascinating aspect of GenAI lies in its ability to convincingly imitate human thinking and behavior, but like humans, it's not always perfect or socially acceptable.
GenAI poses certain risks and issues, including generating incorrect information, legal problems like plagiarism and copyright infringement, and the risk of being held liable for errors. Privacy and data ownership challenges also arise, along with concerns about the lack of transparency, explainability, and accountability.
Additionally, there is a risk of systemic bias, where AI may worsen existing problems, such as reinforcing social biases, spreading misinformation faster, aiding criminals, or intensifying political division.
In a recent survey by Deloitte, 41% of leaders said their organizations were moderately prepared for talent concerns in adopting GenAI, while 22% felt highly prepared. Additionally, 41% felt their organizations were not ready for governance and risk concerns in generative AI adoption, with 18% considering their organizations highly prepared, and a very small portion of 7% stated they were very highly prepared.
Some organizations are taking steps to manage the risks associated with implementing GenAI. These actions include monitoring and complying with regulations, creating a governance framework, and conducting audits and tests on GenAI tools. However, these proactive measures are not common, and they only address a small part of the overall challenge. This is particularly true because regulations often lag behind technological advancements. Despite this, signals like a US presidential executive order and the European Union's Artificial Intelligence Act indicate that government leaders worldwide are recognizing the seriousness of AI risks.
Talent and Workforce Barriers for Generative AI Adoption
Can AI help people with various tasks that were usually considered human-only? This could have a big impact on how organizations and workers operate. What changes might happen in the short and long term, and which skills will be impacted the most, and when?
Statistics show that an impressive 31% of companies expected Generative AI to influence talent strategies within 1 to 2 years; followed by 24% who expected it to impact companies within 1 year. Unexpectedly, there are still the remaining 2% who believe that AI will never influence the talent strategies of a company.
The 2023 Skills Index report by Business Talent Group (BTG) revealed interesting information about AI in today's workplaces. Skills like data science, AI, and machine learning are highly sought after, with data science and machine learning experiencing over 100% increased demand compared to previous years. This trend is expected to continue for the next few years as AI tools, like ChatGPT, become more prevalent since its launch in November 2022.
Despite the high demand for AI skills, about 71% of employers still struggle one year after ChatGPT's introduction. This is because they lack internal expertise in effectively using AI, particularly generative AI, in their non-technical tasks.
However, it's important to mention that the efforts reported regarding the workforce may have limitations. This indicates that many organizations have not fully tackled the talent and workforce challenges that may come with the widespread use of GenAI. One possible reason is that leaders are unsure about the specific skills and roles that will be most needed due to the impact of GenAI on talent.
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