Most firms set to invest in AI but half admit they don’t know why or how

A new poll from Orgvue, an organisational design and planning software platform, suggests that businesses continue to ramp up investment in artificial intelligence despite being unclear on its business impact or how to implement it. Four in five (82 percent) of organisations have already invested, with another 33 percent saying they will increase this by more than 50 percent in the coming year.  Based on a survey of 1,000 C-suite and senior decision makers at medium and large organisations, the report, Human-first, machine enhanced: the role of AI in workforce transformation, highlights contradictions in the business community concerning technology investment and AI’s impact on the workforce.

On the one hand, 61 percent of respondents said they expect AI to replace people in their organisation, with 41 percent saying they think the tech will completely disrupt their industry. A further 69 percent said that AI will be the main driver of workforce transformation over the next three years. On the other hand, 48 percent are unsure how they will manage developments to optimise the use of the technology.

Business leaders are excited about the potential for growth and productivity (79 percent), but 70 percent said they have a responsibility to protect the workforce from redundancies before adopting AI and 78 percent think human intervention is critical to preventing negative outcomes from the tech. For this reason, 80 percent plan to reskill employees to use AI in the workplace. Similarly, 78 percent want the government to introduce stricter rules and regulations, while 54 percent believe regulation has not kept up with the pace of investment and 70 percent think AI should be regulated immediately.

Oliver Shaw, CEO of Orgvue, commented:  “Organisations are beginning to realise that the practicalities of embedding AI into core business operations is far from simple. There’s a dichotomy between the need for business leaders to prepare for AI entering the workforce, their desire for change, and the organisation’s ability to make this transformation a reality. This gap in thinking perhaps stems from a lack of clarity on exactly how AI will impact both businesses and their workforces – indeed the research indicates spending so far is more of a gold rush than a carefully plotted journey. This will also make managing the transformation all the harder.

“Whether it’s optimism or naivety, CEOs are confident AI will solve their business challenges. But the data shows that divisional leaders are less convinced on the impact of AI – with a pronounced scepticism at this level over the value AI can bring and how quickly it can realistically be embedded into everyday business operations.

“This is a dangerous position for organisations to find themselves in. A disconnect in perspective – between those at the top, and those responsible for delivery  – will ultimately derail any long term plans for business change.  To achieve their AI ambitions, CEOs should arm themselves with a better understanding of how AI will truly impact the work their people do today and the skills their organisation has as well as how this may change over time.”