Generative artificial intelligence as the key to sustainable growth Generative artificial intelligence as the key to sustainable growth Generative artificial intelligence as the key to sustainable growth

Our economy is at a crucial turning point: the digital transformation has increased significantly in speed and complexity due to the increasing use of generative artificial intelligence (AI) models. For companies and the entire German economy, it is now important to recognise and exploit the opportunities of generative AI in order to secure Germany's attractiveness as a business location in the long term.

Bill Thomas, Global Chairman and CEO of KPMG International, recently emphasised: "We believe that AI is the key to sustainable growth to create a better future for our employees, our clients and society".

The use of generative AI can increase productivity in unprecedented ways and make human activities much easier. This technology will revolutionise the way we work. A look at platforms like ChatGPT by OpenAI shows the enormous progress and disruptive potential. But how can companies benefit from it?

Generative AI represents a significant development for companies looking to re-evaluate and improve their business processes. By linking generative AI with proprietary data and integrating it into business processes, operations can be optimised and added value can be created.

From the optimisation of financial and tax processes to improved risk management and the automation of services, a wide range of possible applications is opening up. In all departments, whether marketing, HR, IT or sales, technology can lead to significant efficiency gains and productivity benefits. It frees companies from repetitive and time-consuming tasks, allowing employees and managers to focus more on value-creating, strategic decisions. The use of generative AI not only enables an improvement in internal processes, but also helps companies to gain a decisive competitive advantage in a dynamic market environment.

Generative AI undoubtedly offers transformative opportunities for businesses, but it also brings its own challenges and risk factors. For example, so-called hallucinations can occur, meaning that AI provides answers that seem plausible at first glance but are not correct. Minimising hallucinations and providing source information for generated texts are key functions to ensure quality control. Data leaks can become a problem if the IT architecture is not implemented correctly, and copyright infringement often occurs with generative AI models trained on public and potentially copyrighted data.

Generative AI is not just a technological achievement, but a tool that can take a company's creativity and efficiency to a new level. However, this is only possible if all employees - from managers to clerks - are empowered to use this technology effectively. Leaders should act as advocates and mentors, encouraging their teams to explore the benefits and uses of AI.

The introduction of AI is leading to a realignment of roles: Humans will increasingly act as "reviewers" of AI designs. The AI will take over repetitive tasks, giving humans more room for creative and strategic thinking. In addition, they will always retain control and responsibility: generative AI should serve people and increase their potential - but not replace people.

At KPMG, we place great emphasis on guiding our clients through these complex challenges. Our legal advisory offering provides comprehensive knowledge in areas such as compliance, liability, data protection and regulation, such as the EU AI Act. The aim is to ensure the safe and compliant use of AI technologies. With "KPMG AI Performance & Governance", we have a proven solution for AI governance with which we support companies in minimising risks and thus enable them to optimally exploit the potential of generative AI.

By providing KaiChat, our own secure version of GPT to KPMG employees nationwide, we have gained extensive experience from which our clients can benefit. Our services range from strategy and organisational consulting to platform implementation, legal advice and training.

Every company is unique. Therefore, there is no one-size-fits-all approach to implementing generative AI. Two prominent approaches we offer reflect this belief:

• Iterative progress: this approach relies on a step-by-step introduction of generative AI. In doing so, we are guided by a company's specific requirements and priorities. When applying this model, companies benefit from a flexible strategy.
• Comprehensive integration: For companies that are ready to make the transformation journey at high speed, this model is ideal. Generative AI is integrated holistically into all company processes. This not only enables faster and more efficient transformation, but also leverages synergies between different departments to ensure maximum efficiency and consistency.

Regardless of which path you choose: Our experts are happy to accompany you through this new era of digitalisation. They will support you in fully exploiting the possibilities of generative AI and ensure that you are always at the cutting edge of technology and regulation. If you have any questions or would like advice, please do not hesitate to contact us.