Emerging technology

Emerging and disruptive technology is cited by CEOs as the number one threat to organisational growth, with 100 percent of CEOs in ROI and 90 percent in NI believing it will negatively impact their organisations’ prosperity over the next three years. Both of these figures are higher than the global average of 72 percent.

Meanwhile CEOs believe advancements in generative AI technology will be a double-edged sword, acknowledging that it will aid in detection of cyber incidents while also admitting they are ill-equipped to handle the new attack strategies AIarmed adversaries may possess.

Nonetheless, generative AI remains a top investment for business, according to almost three in four (73 percent) of ROI CEOs, slightly higher than the global average of 70 percent. NI CEOs are currently less convinced however, with under half (47 percent) stating that it is a top investment for their organisation.

Increased profitability, new product and market growth opportunities, increased innovation, increased efficiency and job creation are the top five benefits cited by CEOs from implementing generative AI.

Notably, there was a wide distribution of answers with no clear winner, indicating that CEOs have a plurality of views on the benefits of this emerging technology, which may differ depending on the nature of businesses, and also could indicate that while views are generally positive, there is still a significant knowledge gap about how it will specifically benefit business.

Previous KPMG studies show that worldwide, three in five people (61 percent) are either ambivalent or unwilling to trust AI. However, trust and acceptance depend on the AI application.

For example, AI use in healthcare diagnostics is more trusted than AI use for HR purposes. People tend to have faith in the capability and helpfulness of AI systems, but remain sceptical of their safety, security, and fairness. Unsurprisingly, many people also feel ambivalent about the use of AI, reporting optimism and excitement, combined with fear and worry.

Trust is vital says Gillian Kelly who believes business has an essential role in building confidence in AI.

“AI is a leadership matter – not something to be delegated. CEOs have a leadership obligation to be as informed as possible about the power of AI. In addition to exploring the commercial opportunities, there’s a need to formally assess the ethics, governance and security in place around AI and machine learning technologies. We need a set of frameworks and controls to help organisations harness the power of AI — designing, building and deploying AI systems in a safe, trustworthy and ethical manner so companies can accelerate value for consumers, their own people, organisations and wider society.”

Building and protecting trust is integral to how businesses operate and interact with stakeholders. And with that trust comes several commercial advantages. Dani Michaux is Head of Cyber Security at KPMG in Ireland and says, “Research and experience shows that up to half of senior executives believe stronger commercial relationships can result from greater trust on matters related to cybersecurity.”

Yet paradoxically our experience also tells us that senior leaders see information security as a necessary cost rather than a way to gain a competitive advantage. According to Michaux “Often executives do not yet fully understand the competitive benefits of enhancing trust through better information security.”

More positively however, cyber-crime is now embedded in the leadership agenda. Almost three in four CEOs worldwide (73 percent) say that cybercrime is a threat to their prosperity over the next three years. Interestingly this falls in Ireland to 67 percent in NI and more significantly to 47 percent in ROI.

Meanwhile, only 52 percent of CEOs worldwide believe that they are well-prepared for a cyber-attack. The figure is lower in ROI with only 40 percent confident of the same, while NI CEOs are significantly more confident in their preparedness for such an event with 90 percent believing they are well prepared.

Reflecting on the apparent lack of cyber preparedness in most markets, Michaux says; “It might sound strange to say this, but it’s actually a relief in some respects that many CEOs admit that they do not feel well-prepared for a cyber-attack.” She believes that with increasingly advanced technology in the hands of cyber criminals, attacks are now inevitable.

“It’s not a case of whether you will fall victim to an attack but rather when. Accepting that you are not yet fully prepared and that more work is needed is the first step. In addition to focusing on prevention, management teams should focus on business continuity for when an attack does occur to ensure that they can continue to support their employees and customers.”