Emerging AI: Navigating the High Impact and Implementation Gap in US Organizations

Generative AI has emerged as a groundbreaking technology that has captured the attention of business leaders worldwide. Its potential to automate and streamline work processes and generate new insights promises to transform the way organizations operate. However, despite its immense potential, the road to implementing generative AI remains fraught with challenges. In this article, we will examine the results of a recent survey of US executives conducted by KPMG to gain insight into their beliefs on the impact of generative AI, their implementation timeline, challenges and solutions, and the expected impact on business.

Survey results

According to the KPMG survey, 65% of 225 US executives surveyed in March 2023 believe that generative AI will have a high or extremely high impact on their organization in the next three to five years. This finding underscores the growing recognition of the potential of generative AI to transform industries.

Implementation Timeline

Despite the growing interest in generative AI, 60% of respondents said they are still a year or two away from implementing their first generative AI solution. Implementing generative AI is a complex and multi-dimensional task that requires a significant investment in technology, recruiting and training talent, and governance frameworks to ensure responsible use.

Challenges to implementation

The KPMG survey found that less than 50% of respondents believe they have the necessary technology, talent, and governance to successfully implement generative AI. This finding shows that while the potential of generative AI is compelling, the path to implementation is filled with significant barriers.

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To bridge this gap, executives plan to spend the next six to twelve months understanding how generative AI works, evaluating their internal capabilities, and investing in generative AI tools. This approach will enable organizations to build the skills and knowledge necessary to successfully implement generative AI and to ensure responsible use.

What kind of impact do you expect to see?

The KPMG survey found that most executives believe that generative AI will have a high impact on areas such as driving innovation, customer success, tech investment, and sales and marketing. This widespread recognition of generative AI’s potential demonstrates that business leaders are already beginning to envision the transformative possibilities that generative AI can bring to their organizations.

Prioritization of Generative AI by Industry

The KPMG survey found that most executives in the technology, media, telecommunications (71%), and healthcare and life sciences (67%) industries feel they have appropriately prioritized generative AI, while a smaller percentage of executives in consumer and retail (30%) and industrial manufacturing (37%) view it as a priority. These findings show that generative AI is already making inroads in specific industries and that the transformative potential of generative AI varies from industry to industry.

The KPMG survey revealed that approximately 68% of executives surveyed have not yet appointed a central team or person to coordinate their response to the rise of generative AI. This finding shows that many organizations lack a clear strategy for managing the risks and opportunities associated with generative AI, which makes it difficult for them to take advantage of generative AI’s potential.

The Importance of Generative AI in Building and Maintaining Stakeholder Trust

The KPMG survey found that 72% of executives believe that generative AI is crucial in building and maintaining stakeholder trust. However, roughly half (45%) say that not having the right risk management tools can negatively impact their organization’s trust. This finding highlights the critical role that generative AI can play in building and maintaining stakeholder trust and underscores the importance of investing in the necessary tools and processes to manage the risks associated with its implementation.

Executives predict a new era for the workforce that combines human work with generative AI. This new era will require workers to build new skills and competencies to manage generative AI, enabling them to work efficiently and effectively in a collaborative environment.

To stay ahead of the competition, KPMG recommends that executives prioritize swift deployment of generative AI while ensuring ethical and responsible use. This approach will enable organizations to take advantage of the transformative potential of generative AI while minimizing the risks associated with its implementation.

The results of the KPMG survey demonstrate that, while the potential of generative AI is compelling, organizations face significant barriers to its implementation. Effective integration of the technology requires executives to invest in the necessary talent, governance frameworks, and technology to manage the associated risks. Additionally, organizations need to act promptly and responsibly to take advantage of the transformative potential of generative AI while ensuring ethical and responsible use. As the new era of the workforce dawns, organizations must prepare to collaborate effectively with generative AI and build the skills and competencies necessary to succeed in an environment fundamentally transformed by generative AI.

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