Business leaders appear to be aware of the benefits of AI, but their preparation levels are currently out of step with their investment ambitions, a new survey has found.

Workday, an enterprise cloud application vendor for finance and human resources, has published its latest study examining how artificial intelligence and machine learning will impact the future of work.

The global C-Suite Global AI Indicator Report reveals that leaders know their organisations would benefit from AI and ML, but several factors are holding them back.

Optimism for AI and ML is evident, with nearly three quarters (73%) of business leaders believing both will have an impact on the global business landscape in the next three years, and over half (58%) thinking they will significantly amplify human potential.

But despite this positive outlook, businesses are not prepared to adopt the AI tools they plan to invest in. Nearly half  (46%) of respondents say that more than a fifth of their organisation’s annual technology budget is currently invested in AI and ML, only 13% of UK organisations reveal they are completely prepared to adopt them.

AI and ML: More Than Hype?
Based on the survey results, CEOs and other global business leaders have bought into the hype of AI and ML, with nearly three quarters (73%) saying that the global business landscape will be affected in the next three years by the emerging technologies, and 70% believing their own organisations will be affected in the next three years.

Nearly all (99%) leaders surveyed said there would be some immediate business benefit from implementing AI and ML. Top benefits leaders listed include increased productivity, data-driven decision-making, and improved collaboration.

Despite believing in short- and long-term benefits, 42% of CEOs say their organisation is unprepared to adopt AI and ML as they lack some or all of the tools, skills, and knowledge necessary to embrace these technologies, and nearly a quarter (24%) of CEOS want to wait and see how AI and ML will affect their organisation before they decide on their approach.

What Holds Business Leaders Back
Uncertainty about data, privacy, and trust are holding CEOs and other business leaders back from fully embracing and adopting AI and ML.

Almost half (46%) of all leaders surveyed said they were concerned about the trustworthiness of AI and ML, with 74% of CEOs citing potential errors as a top risk of AI and ML integration, reinforcing that lack of trust.

Increased transparency is needed to build CEO trust, but siloed data is obscuring leaders’ ability to lean in. 52% of organisations surveyed reported that their data is somewhat or completely siloed. Only 4% of all respondents said their data is completely accessible.

“With such a small fraction of UK respondents saying their data is completely accessible, it’s clear that an urgent shift in mindset is needed to ensure that the right people have access to the right information, as only when data is accessible can AI and ML truly deliver on its promise for companies,” commented Daniel Pell, VP and UKI country manager, Workday.

“Teams and organisations that have accurate and meaningful insights into their businesses will be able to make smarter decisions and ultimately, protect their bottom-line more than those who do not have this foresight.”

Recommended reading

• UK Businesses Need to Unlock AI’s Full Potential to Beat Skills Shortage
• How Many Businesses Now Consider AI for Every Use Case?
• How Critical is AI and Analytics to Business Success?

Clare Hickie, chief technology officer, EMEA, Workday, added: “With UK organisations collecting a widespread and large amount of data—about people, finances, operations, and more—blending those data sources, making sure the information is accurate, and turning them into actionable insights can be challenging. This is why having a single source of data which as a result, can be trusted, is vital.”

“Defining clear use cases for such data which solves real business problems and addresses the foremost concerns of leadership can enhance a business’s competitiveness, elevate the employee experience, and mitigate skills gaps through strategic partnerships with experienced collaborators.”

Optimism Despite Uncertainty
Among CEOs, 28% are concerned that employees will struggle to keep up with rapid changes as AI and ML become more integrated into their organisation, and 32% of both HR and finance leaders worry their teams will not have technical skills they need to work effectively with AI and ML.

While leaders have concerns about the immediate impact AI and ML adoption will have on employees, they are ultimately optimistic about the overall impact.

Almost three in five (58%) of business leaders believe AI and ML will significantly amplify human potential, and 44% of CEOs believe AI and ML will create a more equitable and diverse workforce.

“Despite some uncertainty, leaders are optimistic that AI and ML will augment their workforce and drive productivity,” said Jim Stratton, chief technology officer, Workday.

“Trust is paramount to embracing these benefits, and building trust requires the right data foundation and commitment to governance. By implementing trustworthy solutions that prioritise data quality and transparency, companies can reap the rewards of AI and ML across their organisation.”