Nearly half of organizations are unsure how to manage advancements in AI
82% of organizations have already invested in AI, with another 33% saying they will increase investment in AI by more than 50% in the coming year.
Businesses continue to ramp up investment in artificial intelligence technology despite not fully understanding it. According to research from Orgvue, an organizational design and planning software platform, nearly half of organizations are unsure how to manage advancements in AI, while just as many don’t understand the business impact of AI.
Orgvue’s new report, “Human-first, machine enhanced: The role of AI in workforce transformation,” is based on an international survey of 1,000 C-suite and senior decision makers at medium and large organizations, and it highlights contradictions in the business community concerning technology investment and AI’s impact on the workforce.
According to the report, 82% of organizations have already invested in AI, with another 33% saying they will increase investment in AI by more than 50% in the coming year. On the one hand, 61% of respondents said they expect AI to replace people in their organization, with 41% saying they think AI will completely disrupt their industry. Further, 69% said that AI will be the main driver of workforce transformation over the next three years, yet 48% are unsure how they will manage developments in AI to optimize use of the technology.
“Organizations are beginning to realize 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 organization’s ability to make this transformation a reality,” Orgvue CEO Oliver Shaw said in a statement. “This gap in thinking perhaps stems from a lack of clarity on exactly how AI will impact both business 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.”
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Business leaders are excited about AI’s potential for growth and productivity, according to the report, but 70% said they have a responsibility to protect their 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.
“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 skepticism at this level over the value AI can bring and how quickly it can realistically be embedded into everyday business operations” Shaw added. “This is a dangerous position for organizations 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.”