While AI offers substantial benefits for business operations, harnessing its full potential requires a strategic approach that encompasses the right people, processes, and risk management.
So, what steps should business leaders take to address their AI concerns and maintain a competitive edge on a global scale?
Understanding the risks
As a rapidly emerging technology, there’s a delicate balance between embracing AI innovation and mitigating its risks. G-P found that eight out of ten organisations have already established an AI programme and 84% plan to invest in the technology in the next twelve months. However, there is widespread uncertainty: almost all respondents (97%) express concerns about their AI plans or goals.
Executives can’t effectively address the challenges of AI without a clear understanding of its risks. This involves focusing on immediate, apparent pitfalls while also recognising and preparing for less obvious threats.
For two-thirds of the executives surveyed, the most significant concern is negative financial consequences of incorrect AI use. Additionally, nearly two-thirds fear the rush to implement AI applications before the necessary resources and strategies are in place.
Despite this, only 2% of executives believe that their company is sufficiently staffed to implement and monitor AI applications effectively – a concerning statistic considering the success of an AI programme can hinge on having the right personnel. Despite this, 60% of executives state that their company invests more money in implementing and further developing AI technologies than in recruiting and retaining employees.
The intersection of AI and talent
Integrating AI technology into business operations has the potential to transform the talent landscape.
Nearly two-thirds (65%) of businesses view AI as crucial for both operating and staying competitive globally. Moreover, 84% of companies plan to increase their investment in AI within the next year. This is significant because adopting the right AI technology can help companies attract the right talent and build a workforce ready to embrace the opportunities that AI offers.
As companies reassess the roles and skill sets needed for their business in the context of their AI plans and goals, it would be beneficial for them to develop strategies where AI technology complements and supports human work, making it more efficient and scalable rather than replacing it.
AI can be leveraged for both technical and non-technical roles and can even assist in building and managing teams. AI-powered global hiring and onboarding products, such as G-P’s, help HR and business leaders manage processes like generating the offer more efficiently, executing employment agreements, and supporting onboarding and benefits setup.
When managing teams, AI can also help throughout the employee lifecycle. AI can be used to manage everything from employment changes and benefits updates to helping manage asynchronous work across different time zones.
Leveraging AI for business growth
Organisations shouldn't approach AI with a one-size-fits-all mentality. Instead, they need a clear strategy to fully benefit from the technology.
For companies looking to grow and scale into new markets, AI can be instrumental in providing insights and helping inform decisions. This not only helps businesses comply with local labour laws and mitigate in-country risks but also allows them to tailor their products and services to meet diverse needs effectively.
To navigate AI risks and seize its opportunities, business leaders must understand the broader spectrum of risks, invest in the right talent, and develop a clear, strategic approach to AI adoption. By doing so, they can mitigate potential pitfalls and leverage AI to its full potential. Ultimately, the future of AI isn’t tech alone, and organisations must think of the transformational elements they need to successfully integrate AI while making the most of the human work to build efficient and scalable businesses.
Nat Natarajan is Chief Product and Strategy Officer at G-P.
