66% of CEOs Prioritize Generative AI Investment, 77% Acknowledge its Dual Nature: KPMG Report
Written by Sanjay Kumar
A recent report by KPMG has highlighted the growing interest and concerns of CEOs in India regarding generative AI, as 66% of Indian company CEOs view it as their top investment priority. The report also reveals that 77% of these CEOs consider generative AI a double-edged sword due to its potential to both enhance and jeopardize various aspects of business operations.
The report, which reflects the sentiment of CEOs in both Indian and global firms, underscores the significant role generative AI plays in the contemporary business landscape. Since the advent of AI chatbots in 2022, more and more CEOs are looking to invest in generative AI for their companies.
According to KPMG’s findings, 66% of Indian company CEOs and 70% of CEOs of global firms are contemplating generative AI as their primary investment focus. The surge in demand for custom content solutions and advancements in AI algorithms have spurred this interest in AI-driven business management.
However, the KPMG report highlights the dual nature of generative AI. While 77% of Indian CEOs recognize its potential benefits and drawbacks, a strikingly similar sentiment is shared globally, with 88% of CEOs worldwide acknowledging the double-edged sword aspect of AI. The report emphasizes that AI can significantly enhance cyber security efforts, but it also introduces new vulnerabilities for potential exploitation by adversaries.
In spite of these concerns, the report suggests that around 61% of CEOs remain confident in their organization’s preparedness to handle potential cyber-attacks.
Beyond the CEO’s interest in artificial intelligence, the KPMG report delves into several other critical issues, such as strategies for reintegrating employees into office spaces post-pandemic, the significance of Environmental, Social, and Governance (ESG) considerations, the importance of fostering Inclusion, Diversity, and Equity (IDE) in the workplace, and the potential risks to business growth perceived by CEOs.
Geopolitical and political uncertainties, climate change, emerging/disruptive technology, operational challenges, and fluctuating interest rates are identified as the top five risks to business growth by most CEOs in India, as outlined in the report.
Akhilesh Tuteja, Partner and Global Cyber Security Leader at KPMG, offered insights into the challenges and opportunities presented by generative AI, emphasizing the need for CEOs to adopt effective strategic approaches in this rapidly evolving landscape. Tuteja noted, “Disruptive technologies like generative AI present unparalleled business opportunities, but they also present CEOs with substantial unknowns and business risks. Navigating this uncharted territory may feel unfamiliar and uncomfortable. Therefore, it is critical to separate valuable insights from the noise and even more essential for leaders to develop an effective strategic business approach to generative AI.”
As the business world increasingly embraces generative AI, CEOs are faced with both incredible prospects and potential pitfalls, emphasizing the need for informed and strategic decision-making in the age of AI.