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Almost every company today is eager to explore the possibilities of generative AI, creating innovative solutions and betting on the potential of foundational models. However, a new survey by PwC reveals that this technology, despite its benefits, also poses significant challenges, including security risks.
PwC asked over 4,700 global executives, including 231 from the U.S., about their plans to reinvent their business models to deliver value to customers and employees. The majority of CEOs see immense potential in generative AI but are also concerned about building trust, with 77% acknowledging that it might increase cybersecurity risks.
The survey highlights the ambitions of global executives regarding generative AI and the challenges they aim to tackle. CEOs anticipate that while generative AI will enhance product quality and overall productivity, it will also heighten industry competition. This year, they expect generative AI to start providing returns, not necessarily in direct profits but by improving product quality and transforming value creation, delivery, and capture processes. Around 58% of executives predict product quality improvements within the next year, and 70% believe it will reshape their business operations long-term.
Executives focus on increasing employee productivity, with 64% expecting their teams to achieve more in the coming months thanks to generative AI. Almost 60% also foresee personal efficiency gains. Eventually, these benefits are anticipated to boost profits, with 44% of CEOs projecting a net profit increase in the next 12 months compared to only 3% expecting a decrease.
However, as generative AI boosts one company’s capabilities, it will do the same for its competitors, intensifying market competition. About 68% of CEOs foresee increased competition over the next three years. In this competitive landscape, workforce skills and the ability to harness generative AI will be crucial.
The societal impact of generative AI remains uncertain. Some executives plan to expand their workforce, whereas others consider downsizing. PwC suggests that the optimal approach is to attract gen AI-savvy talent while training current employees to automate routine tasks, allowing them to focus on higher-value work.
Transparency, purpose-driven strategies, and trust in AI-related plans can help employees feel more comfortable experimenting and innovating with AI. CEOs should understand, explain, and manage the tensions arising from AI implementation.
Building trust in generative AI is critical. Executives are concerned about cybersecurity breaches, with 77% acknowledging the associated risks. They also worry about misinformation (63%) and potential legal or reputational damage (55%).
To tackle these issues, PwC advises CEOs to ensure responsible AI use within their organizations. Trust can distinguish a company and should be integrated into business success metrics. Trusted AI involves more than just compliant systems; it requires the right solutions, data, policies, and oversight for reliable results. This necessitates an enterprise-wide approach and a set of trusted practices.