82% of firms pressing ahead with investment in AI despite 50% being unclear on its business impact or how to implement it

A lack of organisational expertise and lagging regulation could hamper AI adoption, according to workforce transformation experts, Orgvue 

69% of organisations are confident AI will be embedded in core business operations by 2025 but 39% admit they don’t have the organisational expertise to do this.

Other barriers to AI adoption include employee scepticism (36%) and a lack of regulation on using AI in the workplace (33%).

LONDON, March 13, 2024 /PRNewswire/ — Research from Orgvue, the organisational design and planning software platform, shows that businesses continue to ramp up investment in AI despite being unclear on its business impact or how to implement it. 82% of organisations have already invested, with another 33% saying they will increase this by more than 50% in the coming year.

Based on an international survey of 1,000 C-suite and senior decision makers at medium and large organisations, the report, Human-first, machine enhanced: the role of AI in workforce transformation, highlights contradictions in the business community concerning technology investment and AI’s impact on the workforce.

On the one hand, 61% of respondents said they expect AI to replace people in their organisation, with 41% saying they think AI will completely disrupt their industry. A further 69% said that AI will be the main driver of workforce transformation over the next three years. On the other hand, 48% are unsure how they will manage developments in AI to optimise the use of the technology.

Oliver Shaw, CEO of Orgvue, commented:
“Organisations are beginning to realise that the practicalities of embedding AI into core business operations is far from simple. There’s a dichotomy between the need for business leaders to prepare for AI entering the workforce, their desire for change, and the organisation’s ability to make this transformation a reality.

“This gap in thinking perhaps stems from a lack of clarity on exactly how AI will impact both businesses and their workforces – indeed the research indicates spending so far is more of a gold rush than a carefully plotted journey. This will also make managing the transformation all the harder.”

“Business leaders are excited about AI’s potential for growth and productivity (79%), but 70% said they have a responsibility to protect the workforce from redundancies before adopting AI and 78% think human intervention is critical to preventing negative outcomes from AI. For this reason, 80% plan to reskill employees to use AI in the workplace.

“Similarly, 78% want the government to introduce stricter rules and regulations, while 54% believe regulation has not kept up with the pace of investment in AI and 70% think AI should be regulated immediately.”

Shaw added: 
“Whether it’s optimism or naivety, CEOs are confident AI will solve their business challenges. But the data shows that divisional leaders are less convinced on the impact of AI – with a pronounced scepticism at this level over the value AI can bring and how quickly it can realistically be embedded into everyday business operations. 

“This is a dangerous position for organisations to find themselves in. A disconnect in perspective – between those at the top, and those responsible for delivery  – will ultimately derail any long term plans for business change.

“To achieve their AI ambitions, CEOs should arm themselves with a better understanding of how AI will truly impact the work their people do today and the skills their organisation has as well as how this may change over time.”

About Orgvue

Orgvue is an organisational design and planning platform that empowers your business to transform its workforce by understanding the work people do and the skills they have. Our platform connects strategy to structure, providing clarity of vision, so you can build a more adaptable, better performing organisation that thrives in a constantly changing world of work.

The world’s largest and best-known enterprises and consulting firms use Orgvue to visualise and model the current and future states of the organisation and make faster, more informed decisions. The company is headquartered in London, with offices in Philadelphia, The Hague, Toronto, and Sydney.

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SOURCE Orgvue