New research from KPMG UK, the professional services network, has highlighted that business leaders have significant concerns around the implications of generative AI (GenAI) for business performance.

The respondents—40 UK board members across various industries—cited the inaccuracy of results, including hallucinations, as the biggest concern when adopting GenAI (60%).

Boards are also worried about errors in the underlying data and information skewing the model’s outputs (53%), as well as problems related to cybersecurity (50%).

Further, just 30% of directors said that responsible GenAI usage guidelines have been published and communicated throughout their organisation to mitigate these potential issues.

This is even more concerning given that 42% of UK adults said they had entered work-related information into GenAI tools, in a separate KPMG poll.

Algorithmic bias (43%) was identified as another major worry. Yet, a mere 8% indicated that their organisation has processes in place to measure it.

“Given boards’ concerns, it’s important that companies thoughtfully define a clear AI strategy rather than merely chase the next technological innovation,” commented Leanne Allen, head of AI at KPMG UK.

“This strategy should balance the value, cost, and risk associated with AI use cases. This strategic equilibrium is crucial for both progress and stakeholder trust.

Fortunately, KPMG UK found that almost a quarter (23%) of businesses now have GenAI training in place—or training that’s currently in development—to mitigate these risks,

That said, board education on GenAI today is primarily ad hoc or self-taught by individual directors (68%), followed by management presentations (48%), and third-party training (48%).

Few (5%) boards have, or are actively recruiting for, Gen AI expertise. Interestingly, more UK boards (18%) were reporting they had GenAI expertise than in the US (10%).

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KPMG UK’s findings follow on the heels of Hewlett Packard Enterprise’s research discovering that only a third (32%) of IT leaders in the UK and Ireland believe their organisations are fully set up to realise the benefits of AI—despite 96% having started or completed setting up AI goals.

Meanwhile, earlier this month, Gartner—the technological research and consulting firm—forecasted that everyday AI, as well as digital employee experience (DEX), would reach mainstream adoption in less than two years.