Published on November 17, 2023, 12:42 pm

Uk Ceos Actively Investing In Generative Ai To Maintain Competitive Edge, Reveals Ey Survey

According to a recent survey by EY, CEOs in the UK are actively reallocating funds from other areas of their businesses to support the adoption of generative AI. The survey revealed that three-quarters of executives believe that adopting generative AI tools is crucial to maintaining a competitive edge.

The majority of CEOs (99%) are planning significant capital investments in generative AI over the next year, with 51% even reallocating capital from other investment budgets. More than half of the organizations surveyed (54%) have already integrated generative AI within their business practices, and many have hired new talent with relevant AI skills to accelerate adoption rates.

While there is a growing enthusiasm among business leaders to capitalize on generative AI, finding specific use-cases for the technology can be challenging. Executives also struggle to distinguish between “AI hype” and genuine expertise when considering partners for their adoption projects. Many CEOs have expressed concerns over identifying credible companies in this space.

Despite the optimism surrounding generative AI, EY warns that business leaders should exercise caution. While early wins in revenue and efficiency gains may be achieved, these gains may dissipate in the long term. Two-thirds of companies that have already experienced positive outcomes from generative AI tools expect it to redefine their entire business and operating model within two years or less.

EY’s survey also found that 90% of CEOs expect to pursue strategic transactions within the next year, with 48% looking to enter strategic alliances or joint ventures related to AI innovation. Some companies are even considering mergers and acquisitions to enhance their in-house AI capabilities.

The boom in generative AI adoption has been observed globally since late 2022 as organizations continue to explore ways to streamline operations and improve productivity through this technology. According to Gartner, 45% of firms are currently in a generative AI pilot phase, while 10% are already using generative AI tools in full production.

Cost optimization and long-term growth goals are the primary drivers for generative AI adoption, with 26% of organizations citing cost optimization and 30% focusing on long-term growth.

While the adoption of generative AI presents promising opportunities for organizations, it is crucial for CEOs to carefully evaluate partnerships and ensure a strategic approach to avoid unrealistic expectations. With the right strategy and investment in digital assets such as AI capabilities, companies can reinforce their market position and gain a competitive advantage.

In conclusion, the survey conducted by EY highlights the increasing commitment of UK CEOs to adopt generative AI tools. However, it also emphasizes the need for cautious decision-making when selecting partners and managing expectations regarding long-term impacts. With proper strategy and investment, generative AI has the potential to drive productivity and provide a significant competitive advantage to organizations willing to embrace its capabilities.

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