Global Head of AI at KPMG International David Rowlands examines the main concerns CEOs have when it comes to AI adoption.
AI has transcended its status as a mere technological tool and become a strategic imperative that is fundamentally reshaping how organisations operate, innovate, and compete.
The scale and scope of this technological shift are presenting business leaders with unprecedented opportunities to enhance competitiveness and drive growth, while simultaneously introducing complex ethical, regulatory, and operational challenges.
At the heart of this transformation lies a critical tension between technological potential and human expertise.
Over 82% of CEOs and senior leaders now believe AI will have an extreme to significant impact on their business, yet only a small fraction have successfully integrated AI into their core strategic planning.
To understand this complex and dynamic landscape, we spoke to Global Head of AI at KPMG International David Rowlands.
How has the technological landscape transformed over the past decade according to the KPMG CEO Outlook?
The CEO Outlook, launched a decade ago, has captured an extraordinary technological metamorphosis. Eighteen months ago, artificial intelligence was perceived as a nascent concept, but today it has permeated the consciousness of every business leader, politician, and global citizen. Ninety percent of senior executives now describe themselves as having an advanced understanding of AI, signalling a profound shift in technological comprehension.
What makes technological innovation so disruptive in the current business environment?
Technological innovation has consistently ranked as the most significant disruptive force over the past decade. In six of nine surveys, emerging technologies have been identified among the top three risks to growth. This persistent theme underscores the rapid pace of global technological change and its potential to fundamentally reshape business strategies.
How committed are CEOs to AI investment despite economic uncertainties?
Remarkably, sixty-four percent of global CEOs have indicated they would invest in AI irrespective of economic conditions. This commitment is particularly intriguing given that sixty-one percent anticipate a return on AI investment will take at least three years. Despite this extended timeline, seventy-two percent still mark technology as their primary investment priority.
What ethical dilemmas are business leaders confronting in AI adoption?
The ethical landscape of AI implementation is complex and multifaceted. Sixty-five percent of CEOs cited ethical challenges as the most difficult aspect of AI integration. Specific concerns include regulatory ambiguity, with fifty-three percent highlighting a lack of comprehensive regulation, and forty-seven percent expressing concerns about accessing appropriate technical skills and capabilities.
How are technology leaders perceiving the transparency of AI systems?
The KPMG Global Tech Report revealed a striking perspective from technology leaders, including CIOs and CTOs. Seventy-eight percent acknowledged that AI will remain a ‘black box’ for many users, with its inner workings not fully comprehended. This lack of transparency poses significant trust and accountability challenges.
How are CEOs addressing potential job displacement concerns?
Contrary to widespread fears about technological unemployment, eighty-one percent of CEOs believe AI will not fundamentally alter job numbers. In a surprising turn, ninety-one percent plan to increase company headcount over the next three years – the first time this metric has exceeded ninety percent since the pandemic.
What skills are critical for successful AI integration?
Only thirty-five percent of leaders expressed confidence that their employees possess the right skills to fully leverage AI’s potential. This statistic underscores the critical need for comprehensive upskilling and inclusive technological education.
What is the broader strategic vision for AI in business?
AI’s transformative power can only be realised through a collaborative approach. It requires pairing technological innovation with human expertise and a relentless focus on upskilling, tech access, and employee empowerment.
How might AI contribute to long-term economic growth?
As regulatory scrutiny increases, businesses have an opportunity to deploy AI responsibly. By focusing on unlocking its true potential through ethical implementation and continuous learning, organisations can play a pivotal role in steering global economies towards sustainable, long-term growth.
The journey of AI is not about replacement, but augmentation – creating a symbiotic relationship between technological capability and human ingenuity.
