Generative AI has taken the world by storm this year.
It is already transforming the world of work, but it has the power to drive even more productivity and efficiencies in businesses of the future.
Looking ahead to next year, IBM predicts that AI will be top of the CEO priority list for 2024.
This makes sense as McKinsey data shows that generative AI is predicted to add up to $4.4 trillion to the global economy annually, and previous IBM data shows that employers that get ahead of the curve with AI reap the revenue rewards.
According to a new IBM survey of 1,600 leaders in the UK, France, Spain, Germany and Italy, eight in ten have already deployed, or intend to deploy, generative AI in the next year.
Interestingly, IBM’s data shows that leaders and CEOs are not just facing pressure from their customers, but also internally from the board, investors, and importantly, employees.
But this means there are huge expectations on leaders, and specifically HR teams, to “make the right calls and lead appropriately”, especially around ethics and governance, according to IBM.
Ethics, skills and AI
The good news is that leaders are ahead of the curve, and not blind to the challenges around AI and ethics.
96% of leaders told IBM that they are actively engaged in shaping new ethical and governance frameworks, with 91% claiming to have a good knowledge of the regulatory context around generative AI.
IBM found that seven in ten leaders are keen to work with peers and collaborate with policymakers on guardrails around AI.
But AI ethics is not the only challenge leaders will face – there are also talent acquisition and cost issues.
IBM’s research found that AI skills are top of mind for leaders (95%).
In fact, leaders are investing in their own AI knowledge building (44%), and prioritizing upskilling over recruiting AI specialists.
The solution to the cost challenges is embedding trust.
There’s no point investing in tools that employees don’t find useful, or don’t want to use.
HR teams, as the glue between employees and employers, have a role to help with this communication piece.
IBM’s report concludes: “One thing is certain – success sits firmly in the hands of Europe’s CEOs and senior business leaders as they navigate this dynamic new landscape.”
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