Businesses are getting some value from AI, but struggling to scale

Just one-third of tech executives polled in a recent KPMG survey say they are successfully scaling artificial intelligence (AI) into production.

The survey of 2,450 tech executives for the KPMG Global tech report 2024 explored the technology strategies employed by organisations across the globe to deliver value against a backdrop of swift tech advancements and the accompanying industry excitement.

The global survey reported that almost three-quarters of organisations are already achieving business value from their AI investments, yet only one in three are successfully scaling AI to production. KPMG also reported that AI is fuelling anxiety in the workforce. Over three-quarters (78%) of the tech executives polled were worried that users see AI as a “black box” and 77% expect AI to pose challenges to their current operational structures, leading to potential job reduction and ethical concerns.

KPMG urged tech leaders to rethink their leadership roles to empower their workforce, navigate the rapid pace of change and serve as risk guardians. As the authors of the KPMG report noted, generative AI (GenAI) has introduced new risk vectors to the technology domain, such as AI hallucinations, jailbreaks and adversarial prompting that can manipulate AI in non-predictable ways.

To protect against these risks, KPMG recommends that organisations planning to scale out emerging technologies have strong governance and processes in place to control emerging risks proactively. Survey respondents highlighted the importance of continually developing AI governance policies for ethical and fair use in line with the evolving regulatory landscape.

According to KPMG, the tech industry is getting better at identifying and delivering value. However, it found that due to the fast pace of technological change, over three-quarters of the IT executives surveyed admitted they were struggling to keep up. 

Despite this concern, 87% reported higher profits thanks to their tech investments – a 25% increase on 2023. This encouraging statistic is perhaps on account of organisations adopting a more balanced view when considering their technology investments, with 53% strategically evaluating their investment portfolio to ensure it is aligned to their long-term goals.

“As organisations increasingly profit from their technological investments, it is essential to have robust ambitions to harness the advantages of swiftly advancing technologies. Tech executives should focus on strategy over hype to help guarantee that their organisation’s technology investments continue to produce significant benefits,” said Guy Holland, global leader in the CIO centre of excellence at KPMG International.

The survey reported a significant uplift in data capability among the tech executives surveyed, with data now seen as a critical enabler within the modern business. This represents a shift from previous surveys, where data was often regarded as a differentiator. “It is clear the bar has been raised when it comes to data maturity,” the report authors wrote.

The survey also found that data is fundamental to the process of digital transformation and harnessing value from tech investments. Given the importance of data in modern business, 35% of the tech executives polled said they are focusing on improving the protection of their data in the next 12 months, while 33% are prioritising data accessibility and democratisation, and 32% are focusing on data governance.

According to the report, prioritising risk and cyber security will remain essential components for securing value, with cyber security and privacy concerns reported as the factors most likely to trigger the emergency brake in a digital transformation programme.