New findings from EY’s latest CEO Outlook Pulse survey have shown that the majority of chief executive officers in the United Kingdom are seemingly in a race to capitalise on generative artificial intelligence.
Most CEOs Plan to Invest in AI Over Next 12 Months
Per the report, 99% of CEOs are planning to significantly invest in generative AI over the next year. About 51% plan to reallocate funds from other investment budgets to pursue their AI ambitions.
Amidst the rush and hype around generative AI, most CEOs intend to take a strategic route to adopting AI. Up to 90% of CEOs Plan to actively pursue a strategic transaction in the next 12 months, 48% plan to enter strategic AI alliances or joint ventures, and 29% plan to enter into mergers and acquisitions deals.
Despite the optimism, some execs still struggle to find practical ways to incorporate AI technology into their businesses.
“UK CEOs clearly see the huge opportunities that AI offers in its ability to drive productivity and provide a competitive advantage […],” said Silvia Rindone, managing partner for strategy and transactions in the UK and Ireland. “However, this optimism is also tempered with caution, with many grappling with how best to implement and future-proof AI strategies.”
Rindone further noted that the noise surrounding AI has also hindered many execs from deciding about credible partnerships and acquisition targets.
Some Execs are Being Over-Optimistic
EY noted in the report that some business leaders that have already implemented AI technology are exhibiting over-optimism, with some chasing immediate revenue boosts and efficiency gains, which could be detrimental to their business in the long term.
Up to 54% of the CEOs surveyed have made progress in hiring new talent with relevant AI skills, and around 42% have entered new partnerships to drive AI adoption in their businesses.
According to EY, some companies that have already integrated AI expect it to redefine their entire business and operating model within two years or less, which will likely dissipate in the long term.
Thus, while early adopters may reap short-term benefits from AI implementation, focusing solely on the immediate gains could hinder long-term growth and strategic positioning.
