Published on December 30, 2023, 11:35 am

It is evident that generative AI has the potential to benefit businesses of all sizes and industries. From code generation and content creation to data analytics and chatbots, the opportunities are vast and the rewards plentiful.

According to McKinsey, generative AI is estimated to contribute $2.6 trillion to $4.4 trillion annually across various sectors. This alone serves as a strong incentive for over 80% of enterprises that are projected to be working with generative AI models, APIs, or applications by 2026. Those businesses that take action now to leverage these technologies will position themselves for success, while those that fail to do so will likely fall behind in the competitive landscape.

However, simply adopting generative AI does not guarantee success. The key lies in implementing the right strategy. Modern business leaders must prepare for a future where they manage both people and machines, with AI seamlessly integrated into every aspect of their operations. It is crucial to have a long-term plan that harnesses the immediate advantages offered by generative AI while also addressing potential risks that may arise in the future.

Businesses need to address concerns surrounding generative AI from day one. Failure to do so can lead to consequences such as system failures, copyright infringements, privacy breaches, and social harms caused by biases amplification. Surprisingly, only 17% of businesses are currently addressing these risks, leaving themselves vulnerable.

Moreover, it is essential for businesses to be prepared for upcoming regulations related to AI. President Biden has already signed an executive order to establish AI safeguards, the United Kingdom hosted the world’s first AI Safety Summit, and the European Union has introduced its own legislation on this matter. Governments worldwide recognize the risks involved with AI, and business leaders must also prioritize compliance with current and future regulatory requirements when implementing generative AI systems.

So how can leaders strike a balance between the risks and rewards of generative AI? Businesses that adhere to three principles are well-positioned for success: prioritizing human-first decision-making, implementing robust governance over large language model (LLM) content, and adopting a universal connected AI approach. By making wise choices now, leaders can future-proof their businesses and reap the benefits of AI while enhancing their bottom line.

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