According to a recent KPMG survey, only one-third of tech executives report successfully scaling artificial intelligence (AI) into production. The survey, which involved 2,450 tech leaders as part of the KPMG Global Tech Report 2024, examined the various technology strategies organizations are implementing worldwide to derive value amid rapid technological advancements and growing industry excitement.
The survey findings indicated that nearly 75% of organizations are realizing business value from their AI investments; however, only one in three have effectively scaled AI for production use. Additionally, KPMG noted that AI is causing concern among the workforce, with 78% of respondents worried that users perceive AI as a “black box.” Furthermore, 77% anticipate that AI will challenge existing operational frameworks, potentially leading to job losses and ethical dilemmas.
KPMG advocates for tech leaders to reassess their roles to better empower their teams, adapt to rapid changes, and act as risk managers. The report’s authors pointed out that generative AI (GenAI) has introduced new risks to the technology landscape, including AI hallucinations, jailbreaks, and adversarial prompting, which can lead to unpredictable outcomes.
To mitigate these risks, KPMG recommends that organizations planning to scale emerging technologies establish strong governance frameworks and processes to proactively address potential risks. Survey participants emphasized the need for ongoing development of AI governance policies that ensure ethical and fair use amid a shifting regulatory environment.
The report suggests that while the tech industry is improving in identifying and delivering value, over three-quarters of surveyed IT executives acknowledged the challenges of keeping pace with rapid technological changes. Despite these concerns, 87% of executives reported increased profits from their tech investments, representing a 25% rise compared to 2023. This positive trend may be attributed to organizations adopting a more strategic approach to technology investments, with 53% of respondents conducting evaluations to ensure alignment with long-term objectives.
“As organizations increasingly benefit from their technology investments, it is crucial to have strong ambitions to leverage the advantages of rapidly evolving technologies. Tech executives should prioritize strategy over hype to ensure that their technology investments yield substantial benefits,” stated Guy Holland, global leader in KPMG’s CIO Center of Excellence.
The survey revealed a notable improvement in data capabilities among tech executives, with data now recognized as a vital enabler in modern businesses, marking a shift from earlier perceptions where it was seen mainly as a differentiator. “It’s evident that the standards for data maturity have risen,” the report’s authors observed.
The findings also highlighted the necessity of data in digital transformation efforts and in extracting value from tech investments. Given the critical role of data, 35% of tech executives indicated plans to enhance data protection over the next year, while 33% are focusing on improving data accessibility and democratization, and 32% are prioritizing data governance.
The report concludes that emphasizing risk management and cybersecurity will remain essential for securing value, as concerns regarding cybersecurity and privacy are identified as the most likely triggers for halting digital transformation initiatives.