Today, nearly every enterprise seeks to leverage generative AI, as they develop innovative solutions and express optimism about the potential of foundation models. However, a recent PwC survey highlights that while this technology offers significant advantages, it also presents considerable challenges, particularly concerning security risks.
In their survey of over 4,700 global executives, including 231 from the U.S., PwC aimed to understand how leaders plan to transform their business models to continue providing value to customers and employees. The findings reveal that most CEOs recognize generative AI's potential, yet many also emphasize the importance of building trust in this technology, with 77% acknowledging that it could heighten the risk of cybersecurity breaches.
The survey outlines the aspirations global executives have for generative AI, as well as the challenges they foresee in the near future.
Generative AI: Enhancing Products and Competitive Landscape
Global CEOs anticipate that generative AI will begin delivering returns within the year, though they do not expect these returns to manifest as immediate profits. According to the survey, 58% of participants believe generative AI will enhance product quality within the next 12 months, while 70% feel it will significantly transform how their companies create, deliver, and capture value over the long term.
On a more specific level, many executives foresee employee productivity improvements, with 64% expecting workers to accomplish more with the aid of generative AI. Almost 60% anticipate enhanced efficiency for themselves through the technology. These benefits are expected to contribute to improved bottom lines, with 44% of CEOs predicting a net increase in profits in the next year, compared to only 3% forecasting a decrease.
However, as generative AI boosts the capabilities of one company, it similarly empowers competitors, increasing market rivalry. In fact, 68% of CEOs expect intensified competition over the next three years. In this environment, workforce skills and the ability to leverage generative AI effectively will set companies apart.
Currently, PwC notes that the societal implications of generative AI remain ambiguous, with some leaders planning to hire while others consider workforce reductions. The ideal strategy involves seeking talent proficient in generative AI and simultaneously training existing employees to automate routine tasks, thus allowing them to focus on higher-value work.
"Transparency and purpose-driven communication concerning AI initiatives can help alleviate employee concerns, fostering a culture of innovation and experimentation," PwC states. CEOs should address these challenges as a new aspect of their roles, managing the complexities associated with AI integration.
Building Trust in Generative AI
Despite efforts to promote employee acceptance of generative AI through training, establishing organic trust in AI inputs and outputs remains a primary concern for executives. The survey indicates that cybersecurity breaches are viewed as a significant barrier to trust, with 77% of executives recognizing this risk. Additional concerns include the potential for misinformation (63%) and the legal or reputational risks associated with generative AI (55%).
To mitigate these challenges, PwC advises CEOs to ensure responsible and accountable use of AI within their organizations.
"Trust can be a key differentiator for your company. Incorporate it into your business success metrics through appropriate quantitative and qualitative measurements. Trusted AI goes beyond compliance; it encompasses deploying suitable solutions, maintaining relevant data practices, and implementing oversight to ensure reliable outcomes. Achieving this requires a comprehensive, enterprise-wide approach to best practices," the company concludes.
Ranking
