A recent study by IBM has shown that 64% of CEOs are currently embracing generative technology, such as AI, to stay ahead of their competition. However, there is a gap in understanding the full impact of this technology on their workforce and culture, as 65% of CEOs believe their teams have the skills to adopt generative AI without fully grasping its implications.
Jay Limburn, former AI leader at IBM, has described generative AI as a significant technological disruption that occurs once a decade. Despite recognizing the critical importance of adopting generative AI for success, many CEOs lack a complete understanding of its development, with 58% hiring for roles in generative AI that did not exist a year ago.
In order to take advantage of advancements in generative AI, 37% of CEOs are increasing their workforce, while 35% admit that their employees will need training and retraining in the coming years to adapt to this technology. Many CEOs believe that the benefits of rapid technology adoption outweigh the potential risks, as 75% agree that governance for generative AI should be established during the design phase of solutions.
Although 71% of UK CEOs acknowledge that trustworthy AI is impossible without effective governance within their organization, only 35% currently have good generative AI governance in place. Despite the risks involved, 64% of CEOs are willing to take more risks than their competitors in order to maintain a competitive advantage, and 55% agree that the fear of falling behind motivates them to invest in emerging technologies before fully understanding their value.
The study also found that 69% of CEOs believe that the productivity gains from automation are significant enough to justify accepting significant risks. While only 60% are currently experimenting with generative AI, 58% expect to drive growth and expansion through this technology by 2026.
Rahul Kalia, Managing Partner of IBM Consulting for the United Kingdom and Ireland, emphasized the importance of businesses evolving to fully leverage technological advancements. He stated that the success of generative AI will depend more on employee engagement and a culture of innovation than on the technology itself.
Overall, the study highlights the increasing importance of generative AI for businesses, but also underscores the need for CEOs to have a comprehensive understanding of its implications and the importance of effective governance in implementing these technologies.
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https://www.digit.fyi/genai-business-adoption/