KPMG: Gen AI Adoption Surges Despite Corporate Concerns
As the generative AI revolution continues to sweep across industries, a new study from KPMG highlights the complex landscape of adoption and implementation facing business leaders. The research, conducted by KPMG’s Board Leadership Centre, reveals a gap between the recognition of generative AI (Gen AI)’s potential and the practical challenges of its responsible integration into corporate environments.
The study, which polled 40 UK board members across various sectors in June and July 2024, underscores a growing concern among executives about the accuracy and reliability of Gen AI. A staggering 60% of respondents cited the inaccuracy of results, including the phenomenon known as ‘hallucinations’ – where large language models generate false or misleading information – as their primary concern when adopting Gen AI technologies.
This apprehension is not unfounded, as recent high-profile incidents have demonstrated the potential pitfalls of unchecked AI deployment. Leanne Allen, Head of AI at KPMG UK, highlights the need for a measured approach: “Given boards’ concerns, it's important that companies thoughtfully define a clear AI strategy rather than merely chase the next technological innovation. This strategy should balance the value, cost, and risk associated with AI use cases.”
KPMG AI study: Gap between awareness and action
The research also highlights a significant gap between awareness and action. While 53% of board members expressed worry about errors in underlying data skewing model outputs, and 50% raised concerns about cybersecurity implications, only 30% reported that their organisations had published and communicated guidelines for responsible Gen AI usage throughout their workforce.
This lack of formal guidance is particularly alarming in light of a separate poll from KPMG, which found that 42% of UK adults had entered work-related information into Gen AI tools. The disparity between employee behaviour and organisational readiness underscores the urgent need for comprehensive policies and education programmes.
- 60% of respondents cite inaccuracy of results, including hallucinations, as the biggest concern when adopting Gen AI
- Only 30% of directors report that responsible Gen AI usage guidelines have been published and communicated throughout their organisation
- Just 8% of organisations have processes in place to measure algorithmic bias
- 23% of businesses have Gen AI training in place or in development
The issue of algorithmic bias, a topic of increasing scrutiny in the tech world, was identified as a major concern by 43% of board members. However, the study reveals a lack of preparedness in addressing this challenge, with only 8% of organisations having processes in place to measure such bias.
Despite these challenges, there are signs of progress. Nearly a quarter (23%) of businesses surveyed have either implemented Gen AI training or are in the process of developing such programmes.
However, the current state of board-level education on Gen AI remains largely informal. The majority of directors (68%) told KPMG’s report that they rely on ad-hoc or self-taught methods to stay informed about these rapidly evolving technologies. Management presentations (48%) and third-party training (48%) also play a role in board education, but formal, structured learning programmes appear to be the exception rather than the rule.
Interestingly, the study reveals a notable difference between UK and US boards in terms of Gen AI expertise. While only 5% of UK boards reported having or actively recruiting for Gen AI specialists, 18% claimed to have such expertise – a figure that surpasses the 10% reported by their US counterparts.
This disparity raises questions about the global landscape of Gen AI adoption and the varying approaches to integrating this expertise at the highest levels of corporate governance. It may suggest a more proactive stance among UK boards in cultivating internal AI knowledge, or potentially, a difference in how such expertise is defined and recognised across the Atlantic.
As businesses grapple with the transformative potential of Gen AI, the path forward will require a concerted effort from business leaders, technologists, and policymakers to address the challenges identified in the study. As Leanne explains: “This strategic equilibrium is crucial for both progress and stakeholder trust.”
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