Deloitte's Survey Uncovers Optimism and Concerns in Generative AI Adoption

Deloitte's inaugural survey reveals high expectations for Generative AI among organizations, with 79% of respondents expecting it to transform their organizations within three years. However, the survey also uncovers concerns about governance and risk issues, with only a quarter of leaders feeling highly prepared.

Deloitte AI Institute has revealed the first wave of its quarterly survey, titled 'The State of Generative AI in the Enterprise: Now Decides Next,' at the World Economic Forum's annual meeting. Conducted between October and December 2023, the survey captures insights from over 2,800 respondents, ranging from Directors to C-suite level, across 16 countries and six industries. It sheds light on expectations, challenges, and sentiments surrounding the adoption of Generative AI.

High Expectations but Governance and Education Concerns

The survey reports that 79% of respondents anticipate transformative organizational changes due to Gen AI within the next three years. However, only a quarter of leaders feel adequately prepared to address governance and risk issues associated with its adoption.

Deloitte Global CEO Joe Ucuzoglu acknowledges the pressure business leaders face: 'We're in the early days of a major technological transformation, with Gen AI beginning to drive a wave of innovation across industries. Business leaders are under immense pressure to act, ensuring appropriate governance and risk mitigation guardrails are in place."

The findings reveal a gap in educating employees about Gen AI, with only 47% agreeing that their organizations sufficiently provide information on its capabilities, benefits, and value. Additionally, more than half of the respondents (51%) express concerns that widespread Gen AI use might exacerbate economic inequality.

Early Gen AI Experts Focus on Tactical Benefits

While respondents have high expectations for Gen AI, the survey shows a current emphasis on tactical benefits, such as improving efficiency and reducing costs, with 56% prioritizing these aspects. Only 29% prioritize encouraging innovation, and a mere 19% focus on uncovering new ideas and insights.

Interestingly, 44% of respondents consider their expertise in Gen AI to be "high" or "very high." This group, referred to as early Gen AI experts, appears to be at the forefront of applying Gen AI, with 73% already integrating it into product development and research and development. This indicates a shift toward applications related to innovation and growth.

Talent, Governance, and Risk Challenges

Although there is a sense of preparedness in strategy and technology infrastructure, respondents express less confidence in addressing talent, governance, and risk challenges, citing these as significant barriers to Gen AI adoption. The primary barrier is the lack of technical talent and skills, with only 22% feeling highly prepared to tackle talent-related issues.

Concerns in governance include a lack of confidence in results, cited by 36% of respondents. Intellectual property concerns are close behind at 35%, followed by the potential misuse of client or customer data (34%), challenges in complying with regulations (33%), and a lack of explainability or transparency (31%)."

While business leaders are enthusiastic about the potential business benefits of Gen AI, concerns are emerging regarding its broader societal impact. Over half of the respondents anticipate Gen AI to centralize power in the global economy (52%) and to increase economic inequality (51%). Additionally, 49% believe it will erode trust in national and global institutions.

Global Regulation and Collaboration Call

In response to these concerns, 78% of respondents advocate for more global regulation, while 72% emphasize the need for increased collaboration to manage the responsible and widespread adoption of Gen AI.

Deborshi Dutt, Artificial Intelligence Strategic Growth Offering Lead and Principal at Deloitte Consulting LLP, advises organizations to 'consider Gen AI in conjunction with other AI and technology tools to drive business growth.' He emphasizes the importance of collaboration and education in responsibly navigating this transformative landscape.

The survey marks the beginning of a quarterly series that tracks the integration of Gen AI in enterprises. This series builds on Deloitte's six-year history of assessing the 'State of AI in the Enterprise.'
 

About Author: Tracy Mokwe

With over 3 years of experience as a medical laboratory scientist and writer, I am passionate about translating complex scientific information into clear and accessible content. My expertise lies in medical sciences, laboratory science and research, digital health, AI, and cybersecurity in healthcare.