Tech Leaders Unprepared for Generative AI Despite Recognizing Benefits

Generative artificial intelligence (AI), a subset of AI that uses algorithms to create content, has the potential to revolutionize the way we utilize technology. This is the key finding of the 2023 Nash Squared Digital Leadership Report, which surveyed over 2,100 technology leaders worldwide. However, the report also highlighted a significant gap in preparedness and policy development for this emerging technology.

According to the report, 70% of tech leaders believe the benefits of AI outweigh the risks. Yet, only 15% feel adequately prepared for the demands of generative AI, such as AI images generator or AI text generator tools. Furthermore, only 20% have an AI policy in place, and more than a third (36%) have no plans to develop one.

The report portrays a landscape filled with anticipation, uncertainty, and concern. For the first time in many tech leaders’ careers, they are grappling with questions like, “Just because we can, should we?” This highlights how generative AI is sparking new debates and raising novel issues.

While large-scale AI implementations have been limited to only 10% of organizations so far, the growing interest in generative AI, including AI video generators and other AI tools, is pushing us towards a tipping point. This shift mirrors the early days of cloud and software as a service (SaaS), where many leaders were apprehensive about potential loss of control within their organizations.

However, with generative AI, there is less choice. Employees are already using it, and this trend is likely to continue. Therefore, it’s crucial for organizations to provide guidance and establish policies addressing potential risks of generative AI. These risks range from flawed research results and potential copyright issues to overestimating AI’s capabilities and data privacy concerns.

Data privacy is a particular concern for tech leaders, with 36% ranking it as their second-highest concern in the Digital Leadership Report. Despite the hesitancy in creating AI policies in such a new field, the report emphasizes the need to overcome this reluctance. Having a policy, even if imperfect, is better than having none at all.

In addition to policy development, enhancing AI literacy among staff is crucial. This can be achieved through training sessions, discussion forums, and online resources. The report found that nearly half of organizations have some form of AI implementation or pilot in play, with a third of these involving generative AI.

To successfully implement generative AI, the report recommends a multi-disciplinary approach, involving key stakeholders from various departments such as HR, finance, legal, and marketing. Assigning overall responsibility for AI to a specific person in the business leadership team can provide clarity around accountability and move the discussion from theory to practical action.

The report also advises against trying to solve everything at once with AI. Instead, organizations should identify specific use cases where AI can add value. These could include automating processes, assisting staff in content creation, researching product models and designs, extracting information from large data fields, or improving customer experience through predictive capabilities.

In conclusion, the latest AI news underscores the transformative potential of generative AI. However, to harness this potential effectively and responsibly, organizations must proactively develop policies, enhance staff literacy in AI, and adopt a multi-disciplinary approach to its implementation.