U.K. business leaders feel pressured to accelerate investments in generative artificial intelligence despite an abundance of potentially dud advice clouding decision-making, research from Ernst & Young suggests.
Meanwhile, a survey of 150 U.K. CEOs by KPMG finds that 71% see generative AI as a top investment priority, despite ongoing economic uncertainty and a lack of regulatory or ethical AI frameworks.
How U.K. leaders are reacting to generative AI
EY quizzed 100 U.K. chief executives as part of its October 2023 CEO Outlook Pulse survey and found that 74% feel the need to act decisively on generative AI to stop their competitors from gaining the upper hand.
EY found that most U.K. business leaders are “taking tangible steps” to embed artificial intelligence into their organizations, whether by hiring talent with applicable AI skill sets (54%) or launching AI pilots and partnerships with other companies (42%).
SEE: Tech leaders identify AI, 5G, cybersecurity, big data and metaverse as top investments in EY survey.
Overall, 99% of U.K. CEOs have made or are planning to make “significant capital investments” in generative AI in the next 12 months, with 51% reallocating capital from other parts of the company to fund these investments (Figure A).
The struggle to separate hype from reality
However, businesses face challenges capitalizing on generative AI as they wait for the reality to catch up with the hype. EY found that 68% of business leaders in the U.K. say uncertainty around generative AI is creating challenges for adoption, with EY noting that “a surge in companies claiming AI expertise” is making it difficult for leaders to cut through the noise and implement AI strategies.
Business leaders acknowledge that the