Developing and maintaining a competitive edge in today’s digital landscape requires organisations to get on board with AI or face being left behind. One of the latest AI tools, Generative AI, has set tongues wagging across the industry as experts get to grips with the technology – its challenges and its benefits. We hear from technical experts who have their say.
UK CEOs are accelerating investments in Generative AI (GenAI) to maintain a competitive advantage, but most are facing challenges in developing and implementing AI strategies, according to the findings of the latest EY CEO Outlook Pulse survey.
The survey of 100 UK CEOs – which provides insights on AI, capital allocation, investment, sustainability and transformation strategies – found that nearly all respondents (99%) are making or planning significant capital investments in GenAI in the next 12 months, with 51% funding investments by reallocating capital from other investment budgets.
Almost three-quarters (74%) of UK CEOs believe their organisation must act now on GenAI to avoid giving their competitors a strategic advantage. Most are already taking tangible steps to embed AI into their organisation – 54% said they had hired new talent with relevant AI skill sets, while 42% had established AI pilots and partnerships with multiple companies.
Amid this activity, 68% of UK CEOs said they felt the uncertainty around GenAI made it difficult to develop and implement AI strategies, while 30% said they were concerned about the risk of deploying AI in their organisation. CEOs are also finding it hard to distinguish AI ‘hype’ from genuine expertise – 77% said they had seen a sharp increase in companies claiming to be experienced in AI which was making it harder to identify credible parties.
“UK CEOs clearly see the huge opportunities that AI offers in its ability to drive productivity and provide a competitive advantage and, as a result, are making significant investments in AI technology,” said Silvia Rindone, UK&I Managing Partner for Strategy and Transactions, EY. “However, this optimism is also tempered with caution, with many grappling with how best to implement and future-proof AI strategies. The noise surrounding AI has also hindered decision-making about credible partnerships and acquisition targets.”
Strategic transactions remain a focus
Nearly all the CEOs interviewed (92%) said they expect to actively pursue a strategic transaction in the next 12 months, with 48% looking to enter strategic alliances or joint ventures, 45% looking to divest and 29% looking to M&A.
Rindone added: “Despite economic headwinds, strategic transactions remain a priority for UK CEOs particularly when it comes to accelerating technology innovation. With new technologies emerging and maturing rapidly, we’re likely to see an acceleration in investment in digital assets – such as AI capabilities – leading to more transactions as companies look to either reinforce their market position or gain a competitive advantage.”
Reflecting on the rush to seize the ‘golden ticket’ of AI innovation, Jonathan Boakes, Managing Director, Infinum UK, believes that firms could sweep themselves up in excitement and fear of missing out which could obscure sound judgement into a well-thought-out plan. “Learning from the impulsive golden ticket hunters in Willy Wonka’s world, those who dive in impatiently will face challenges. It’s a reminder that while FOMO is a powerful motivator, it can lead to incorrect investments and untimely scaling. To succeed in the AI revolution, businesses need to reflect on their past mistakes and determine if it is truly productive to join the trend.”
There is also an emphasis on improving workforce capabilities as well as external operations. Chris Stephenson, Chief Technology Officer, Sagacity, thinks that businesses will be looking to capitalise on Generative AI internally, as well as externally, to augment employee knowledge by using Large Language Models (LLMs) to share and disseminate information within companies more effectively. “Despite this wide-scale implementation, AI will still only complement humans – we won’t be seeing any large-scale lay-offs due to jobs being directly replaced by AI in 2024, or anytime soon.”
Other reports have emulated the fact that most companies are already using Generative AI – such as McKinsey stating 60% are utilising the technology – which Uzi Dvir, CIO, WalkMe, argues is likely to increase, in a similar way to cloud and internet adoption. He says that although companies are investing in both seizing the AI advantage while proactively mitigating and addressing risk factors, the McKinsey report highlights that the two biggest risks with Generative AI are inaccuracy and cybersecurity.
In light of the recent UK AI Summit which was held between international governments, leading AI companies, civil society groups and experts in research, industry leaders offered interesting perspectives on the use of AI within society.
The UK’s AI Summit set a new precedent for the tech world: world governments are interested in regulating and investing in safe AI. As a result of the current AI climate, UK Prime Minister, Rishi Sunak, said that governments needed to take action and AI firms could not be left to ‘mark their own homework’.
Considering these recent events, analytics cloud platform, Alteryx, published new findings that demonstrate the crucial role of AI that businesses need to stay ahead of innovation. The findings indicate that to fully realise the power of AI, businesses will have to adjust their skill sets as well as increasingly invest in advancements in technology.
“There is no single solution to success, but the research highlights some key plays UK business leaders need to home in on to build a truly AI-driven enterprise,” said Jason Janicke, SVP EMEA at Alteryx. “Regulation will play a key role in the successful implementation of AI and will be just as much of a priority as innovation is for leaders.
“Laying the foundations for Generative AI requires a business-wide approach to data-driven decision-making that empowers the entire workforce to take full advantage of the technology while offering confidence and assurance to the business that it is safe and secure to embark on this journey. Accessible, self-service analytics and automation technologies are the force multiplier that will empower the workforce to jump on the AI train confidently and companies to move forward on their Generative AI journey safely.”
Nigel Green, CEO, DeVere Group, said: “While there’s much talk and debate about the potential for serious, catastrophic harm posed by advanced or frontier AI technology, the talks stop short of urging governments to impose specific regulations.”
Enterprises are keen to adapt and embrace solutions that will help them excel in their fields. However, it’s clear that investment in guidelines, compliance and strategic foresight will help organisations future-proof their operations in the face of rapidly evolving technology.
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