NEWS

91% of C-Suite leaders say that their companies are now using generative AI or are planning to do so within the next 18 months, shows new research by Thomson Reuters. The survey reported on responses from 148 C-Suite leaders (CFOs, CEOs etc) from the United States, United Kingdom and Canada.

The research shows that the use of AI across businesses is becoming ubiquitous as leaders start to recognise the true potential of the technology, such as in developing new products, driving operational efficiency and reducing spend on external services and contractors. C-Suite leaders believe the key roles Gen AI could have in their businesses are increasing customer satisfaction (41%), accelerating digital transformation (37%), and improving operational efficiency. Gen AI could help them improve employee engagement and well-being; 87% of C-Suite leaders also believe they have cause for some concern about AI, citing fears over data privacy, training and regulatory impact. Preventing consequences from inaccurate Gen AI responses was among the biggest concerns.

Ethical, legal and regulatory matters also generated anxiety, including ensuring compliance with relevant laws and regulations and ensuring that generative AI tools are used ethically and responsibly, with 28% very concerned about each. A considerable number of respondents also believe generative AI makes regulatory compliance more challenging (30%).

Proactive steps include putting in place an organisation-wide policy regarding employees’ use of these tools, reported by 74%; with another 21% reporting department-wide policies are in place. 

Training is also employed by companies to harness the potential of AI, with 72% reporting some kind of generative AI training offered online and completed at the employee’s pace.

"Future of Professionals: C-Suite Survey" can be found here 

The order contains several key areas of focus, such as how to protect Americans’ privacy, standing up for consumers and supporting workers, and how to promote innovation and competition while ensuring responsible and effective use in both the private and government sectors.  

The Fact Sheet issued by the White House states, “Today, President Biden is issuing a landmark Executive Order to ensure that America leads the way in seizing the promise and managing the risks of artificial intelligence (AI). The Executive Order establishes new standards for AI safety and security, protects Americans’ privacy, advances equity and civil rights, stands up for consumers and workers, promotes innovation and competition, advances American leadership around the world, and more.” 

For AI leaders and founders like Brian Sathianathan of Iterate.ai, these parameters are long overdue. Sathianathan stated, “The White House's new Executive Order on Artificial Intelligence is a significant step toward addressing the potential risks and benefits of AI technologies. By establishing a comprehensive framework for the development and deployment of AI systems, this order aims to protect Americans' privacy and advance equity and civil rights. This focus on safety, security, and trustworthiness will help to ensure that AI is used responsibly and effectively in the years to come,” he explains.  

Finance and accounting it set to be transformed by AI, according to nearly a third (32%) of business leaders. In the Age of AI Survey of UK business leaders, by cloud-based accounting software bluQube, finance and accountancy was one of the business areas most likely to be impacted by AI, coming second only to the sales and marketing departments at 34%.

Respondents also noted the benefits they are likely to see from AI, with the top being that it could take away many of the repetitive and admin tasks associated with the role (42%). This is followed by the belief that it will allow professionals to be more strategic (35%) and require them to take on more of an advisory or client-facing role (31%).

However, others weren’t as optimistic with 29% saying that it would force them to retrain or reskill in other areas to be as successful. Concern was also echoed by 9% of business leaders who believe the technology will replace finance staff and 6% who stated it will either deskill the role or have no impact at all. Interestingly, finance and accounting remains one of the most trusted business functions for AI to carry out, with 63% saying they’d trust the application of AI to this area the most.

Simon Kearsley CEO of bluQube, commented: “Discourse surrounding AI over the past year has largely focused on the technology’s potential to transform job roles as we know it. Within the accounting and finance profession, our research suggests that business leaders’ opinions may be influenced by their current perception of AI’s capabilities.

“As AI continues to adapt and becomes a larger part of the accounting profession over the coming years, it is important to remember that the changing nature of work doesn’t equate to the elimination of the human workforce. Instead, it can facilitate a more varied career that empowers accountants to provide better financial insights and add more value to the organisations they serve.”

To access more findings from bluQube’s ‘Age of AI’ report, visit www.bluqube.co.uk. 

As part of its ongoing investment in the development and deployment of technology such as AI, KPMG International appointed David Rowlands as Global Head of AI for KPMG International and launched the KPMG Trusted AI framework with the aim of ensuring a responsible and ethical approach to AI transformation. 

In this newly created role, David will collaborate and coordinate with specialists from across the global organisation to help drive and implement KPMG’s AI strategy to unlock growth and empower KPMG member firms to leverage emerging AI technologies into ways of working that enhance client engagements and help supercharge the employee experience in a way that is responsible, trustworthy and safe.

Together with KPMG professionals from across audit, tax and advisory, David will drive innovation across the globe through the design, development, and deployment of new AI powered services to help clients address their most pressing challenges including helping increase productivity, adding value through augmented capabilities and insights and taking a holistic approach to the integration of AI across the entire enterprise. 

In addition, David will also help member firms to embed and adhere to the strong governance outlined in the KPMG Trusted AI approach, built on the principles of fairness, transparency, explainability, accountability, data integrity, reliability, security, safety, privacy, and sustainability.  The ten-pillar guide is KPMG’s strategic framework to help design, build, deploy, and use AI tech solutions in a responsible and ethical manner while also accelerating value and making the difference for clients, people and communities.

Most recently, David served as Head of Consulting for KPMG in the UK, sitting on the UK Executive Committee and the Global Advisory Steering Group.  

“I am excited about the promise of AI. With the ability to boost productivity with speed and scale, AI models continue to transform businesses and are one of the keys to unlocking sustainable growth in a way that can build a better future for people, companies, and society.  

By responsibly embracing AI, we see the potential to fully harness its power by bringing together the human ingenuity, business, and industry expertise of KPMG professionals with the power and scale of AI programmes. I am looking forward to working in collaboration with people from across the globe to firmly position KPMG as a leader in AI.

UK CEOs are accelerating investments in generative AI (Gen AI) to maintain a competitive advantage, but most are facing challenges in developing and implementing AI strategies, according to the findings of the latest EY CEO Outlook Pulse survey.

The survey of 100 UK CEOs which provides insights on AI, capital allocation, investment, sustainability and transformation strategies found that nearly all respondents (99%) are making or planning significant capital investments in GenAI in the next 12 months, with 51% funding investments by reallocating capital from other investment budgets.

Almost three-quarters (74%) of UK CEOs believe their organisation must act now on Gen AI to avoid giving their competitors a strategic advantage. Most are already taking tangible steps to embed AI into their organisation – 54% said they had hired new talent with relevant AI skill sets, while 42% had established AI pilots and partnerships with multiple companies.  

Amid this activity, 68% of UK CEOs said they felt the uncertainty around Gen AI made it difficult to develop and implement AI strategies, while 30% said they were concerned about the risk of deploying AI in their organisation. CEOs are also finding it hard to distinguish AI ‘hype’ from genuine expertise – 77% said they had seen a sharp increase in companies claiming to be experienced in AI which was making it harder to identify credible parties.

Silvia Rindone, UK&I Managing Partner for Strategy and Transactions, commented: “UK CEOs clearly see the huge opportunities that AI offers in its ability to drive productivity and provide a competitive advantage and, as a result, are making significant investments in AI technology. However, this optimism is also tempered with caution, with many grappling with how best to implement and future-proof AI strategies. The noise surrounding AI has also hindered decision-making about credible partnerships and acquisition targets.”  

Artificial intelligence (AI) and machine learning (ML) adoption is increasing across virtually every industry, and is particularly notable in the fintech and financial services sectors.
 
A recent McKinsey report found that 55% of businesses have now adopted AI in their everyday practices. However, when we examine the financial services industry in isolation, Bank of England data reveals that 72% of firms have implemented AI in some form.  
 
According to Ronald Binkofski, CEO at STX Next, the differential between financial services organisations and businesses on the whole outlines how well suited AI and ML applications are in streamlining fintech operations and opening the door to further innovation. 
 
Binkofski said,  “Automation allows fintech companies to execute tasks and processes much faster than manual methods. For instance, AI-powered trading algorithms can analyse market data and execute trades in milliseconds, enabling real-time decision-making and taking advantage of market opportunities before human traders can react. 
 
“AI and ML algorithms can also process vast amounts of data with high precision, reducing the chances of human error that is common in manual data handling. This accuracy is crucial in areas like fraud detection, risk assessment and compliance, where even minor mistakes can have significant consequences. We’re seeing automation streamline workflows and reduce manual interventions, leading to enhanced overall efficiency. By automating repetitive tasks, employees can focus on more strategic and complex activities, driving innovation and business growth. 
 
“Another important application of AI and ML is the way they allow businesses to scale. Automated systems can handle large volumes of data and transactions without compromising performance, which means that as fintech companies grow, automation ensures that their processes can scale effortlessly to accommodate increasing demands. 
 
“Automation also allows for the delivery of personalised financial services to customers. AI-powered recommendation engines analyse individual preferences and behaviours to offer tailored investment options, insurance plans or financial advice, enhancing the customer experience. Finally, automation through AI and ML facilitates real-time data analysis, enabling financial institutions to make faster and data-driven decisions. This is especially critical in markets with rapid fluctuations, where real-time insights can make a difference in gaining a competitive advantage.” 
 
STX Next’s CEO concluded, “ML algorithms can continuously learn from new data and adapt their models. Therefore, early adopters will benefit from automated systems that improve over time, becoming more accurate and efficient as they gather more information. In the fintech industry the difference between success and failure can be extremely small, so AI and ML can be instrumental in giving companies an edge.”