While there are still a lot of unknowns when it comes to artificial intelligence, the technology has quickly become something that businesses can’t ignore. But the well-publicized problems with AI’s early trials, ranging from biased information to hallucinations, are making some CEOs pause as they consider how much they want to incorporate it into their businesses.
A new KPMG CEO survey has explored how corporate leaders view AI. And while the majority of those surveyed said they plan to increase capital investments in buying new technology, even more admitted they were worried about the lack of regulation around it.
Some 21% of the CEOs KPMG spoke with said they expect to see a return on their investment in generative AI within three years, while 62% think it will be more along the lines of three to five years. A whopping 81%, however, expressed concern that the lack of regulation for the technology right now will hinder their company’s success.
Meanwhile, 77% said the degree of regulation on generative AI should be the same as that being enforced on climate commitments. The biggest fear surrounding AI? Ethical challenges, followed by cost and technical skills.
“CEOs are increasingly aware of the ethical risks and rapidly evolving regulations tied to generative AI, and many are taking proactive steps to address them,” said Steve Chase, vice chair or KPMG AI and Digital Innovation. “A trusted AI program provides a clear road map to navigate the end-to-end AI life cycle with ethical, safe and responsible decision making. With the right governance, policies and controls, organizations can move faster and scale with confidence.”
Fears aren’t holding executives back, though. Just under three-quarters, 72%, of the CEOs surveyed said generative AI is a top investment priority, even with the current economic uncertainty. And one of the big advantages for those leaders is the AI’s ability to help them fight hackers. Eighty-five percent of the CEOs KPMG spoke with said they believe AI can help detect online attacks and offer new strategic defenses.
That’s critical, given how pervasive cybercrime has become—and how big it’s expected to be. Cybersecurity Ventures estimates ransomware will cost its victims roughly $265 billion by 2031. And Check Point Research’s 2023 Mid-Year Report found that 48 ransomware groups admitting to breaching over 2,200 victims around the world, with just under half in the United States.
An epic challenge
A separate recent C-Suite study from IBM called the CEO leadership position in the AI age an “epic challenge.” Part of the problem, that study found, is fear of missing out, as many leaders invest in the hope that AI will result in advantages down the road. The IBM study, which spoke with 3,000 CEOs from 30 countries and 24 industries, found that 75% believed competitive advantages would go to companies that have the most advanced generative AI. And 50% of those CEOs said they would integrate that generative AI into their products or systems.
Given the rosy forecasts about AI’s potential, that’s easy to understand. A report from McKinsey found that AI could add the equivalent of $2.6 trillion to $4.4 trillion annually to the global economy by 2040. To put that into perspective: The United Kingdom’s entire GDP in 2021 was $3.1 trillion
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Image and article originally from www.nasdaq.com. Read the original article here.