A recent report by professional services firm KPMG has provided insights into the perspective of top-level executives, particularly CEOs, on integrating generative artificial intelligence (AI) into the workplace. The findings reveal that 72% of CEOs in the United States consider deploying generative AI a “top investment priority” despite the prevailing macroeconomic challenges. Various factors, including cost-saving opportunities and improved efficiency, drive this enthusiasm. However, this push for AI adoption is not without concerns, with ethical and regulatory issues topping the list of CEO worries.
Differing approaches to AI investment
The KPMG report also highlights CEOs’ differing approaches regarding AI investment strategies. While 57% of respondents intend to invest in new AI technology, 43% are focused on upskilling their existing workforce to harness the potential of AI effectively. This divergence in approaches reflects organizations’ diverse strategies to incorporate AI into their operations.
Long-term returns on AI investments
Many CEOs take a long-term view of their AI investments, expecting to see returns within three to five years. Only 23% express confidence in reaping rewards within a shorter timeframe of one to three years after investing in new technology or upskilling their staff. This longer investment horizon indicates that many CEOs see AI as a transformative technology with the potential for substantial, lasting impacts on their organizations.
Fueling the AI appetite
Several factors are fueling the growing appetite for generative AI among CEOs. One key driver is the need for cost savings and operational efficiency. Generative AI tools such as ChatGPT and Bard are making their presence known in corporate America, with thousands of employees relying on them to handle mundane and repetitive tasks. These tools streamline operations, freeing up employees to focus on more strategic and creative endeavors.
Carl Carande, KPMG Global Head of Advisory, highlights the importance of CEOs harnessing generative AI to navigate economic and geopolitical uncertainties. AI can enable rapid scenario planning and enhance the ability to address changing market conditions and emerging risks effectively.
Concerns surrounding AI integration
Despite the eagerness to adopt generative AI, U.S. CEOs are acutely aware of the risks associated with its integration into the workplace. The top concern among U.S.-based CEOs is the absence of a robust legal framework to regulate the development, use, and deployment of generative AI systems. This regulatory gap has raised ethical concerns and uncertainties about how AI is employed within organizations.
Additionally, CEOs express concerns about potential job cuts, the need for technical skills, associated costs, and cybersecurity issues. Fear of data breaches has led some U.S.-based technology and financial companies to ban their employees from using OpenAI’s ChatGPT.
The path towards regulatory frameworks
To address the challenge of the absence of a regulatory framework, countries are beginning to lay the foundation for comprehensive rules governing AI usage. Globalization is a key pillar in this effort to ensure that AI is deployed responsibly and ethically, mitigating the risks associated with its integration.
AI’s impact on the workforce
Contrary to growing fears that AI will lead to a mass extinction of jobs, multiple reports suggest a more nuanced picture. An IBM study suggests that while widespread job loss is unlikely, up to 40% of employees may require upskilling to remain relevant in the evolving job market. The International Labour Organization (ILO) supports this perspective, noting that generative AI is more likely to complement human efforts than replace them. However, the report does highlight that entry-level roles and customer service jobs face the most significant risk of AI-related displacement, with women being a demographic group at higher risk.
KPMG report sheds light on the stance of U.S. CEOs regarding generative AI in the workplace. While there is a strong drive to invest in AI technologies for their organizations, ethical concerns, regulatory uncertainties, and potential workforce challenges remain top of mind. As AI continues to advance, organizations and governments will need to work together to strike a balance between innovation and responsible AI adoption to ensure a prosperous and inclusive future of work.
