A large majority of U.S. corporate executives are unprepared for immediate adoption of generative AI, which refers to artificial intelligence technology that can produce text and other forms of output based on what it has learned, according to a KPMG study.
Sixty-five percent of survey respondents said they believe generative AI will have a major impact on their organization in the next three to five years. But nearly the same number (60%) said they’re still a year or two away from implementing the technology, according to the survey, which was released Monday.
While executives believe that generative AI can be highly transformative, they also see major hurdles to adoption, such as determining clear business cases and installing the right technology, talent, and governance, KPMG said.
A growing number of enterprise software vendors are incorporating new AI capabilities into tools designed to automate business functions such as financial planning. This comes in the wake of the success of ChatGPT, a generative AI tool created by Microsoft-backed OpenAI.
“There’s a lot of interest among CFOs, but to go from that to developing and executing a plan takes time,” Sanjay Sehgal, head of markets at KPMG, said in an interview. “Just like with any new technology, people want to prove it out” before adopting it.
According to KPMG’s research, most organizations are still in the early stages of designing and implementing risk and “responsible use” programs for AI adoption, despite the magnitude of the technology’s potential impact.
Cybersecurity and data privacy were top concerns for respondents, at 81% and 78% respectively.
Thirty-nine percent said they believe that generative AI could lead to decreased social interactions and human connections with coworkers that may have negative impacts on the workforce. Another 32% worried about the possibility of increased mental health issues within their workforce due to the stress of job loss and uncertainty about the future.
Despite such concerns, only 6% of organizations reported having a dedicated team in place for evaluating AI-related risks and implementing mitigation strategies. Five percent reported having a “mature, responsible” AI governance program.
KPMG surveyed 225 U.S. executives in the last two weeks of March, focusing on businesses with at least $1 billion in revenue.