82% of firms pressing ahead with investment in AI despite 50%

Research from Orgvue shows that businesses continue to ramp up investment in AI despite being unclear on its business impact or how to implement it. 82% of organisations have already invested, with another 33% saying they will increase this by more than 50% in the coming year.

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

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.”

“Business leaders are excited about AI’s potential for growth and productivity (79%), but 70% said they have a responsibility to protect the workforce from redundancies before adopting AI and 78% think human intervention is critical to preventing negative outcomes from AI. For this reason, 80% plan to reskill employees to use AI in the workplace.

“Similarly, 78% want the government to introduce stricter rules and regulations, while 54% believe regulation has not kept up with the pace of investment in AI and 70% think AI should be regulated immediately.”

Shaw added:

“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.”