Boards recognise Gen AI risks, yet guidance and education is slow to materialise

Despite the promises of Gen AI, some boards have concerns about its implications for business performance, according to new research from KPMG UK.

Respondents cited the inaccuracy of results, including hallucinations¹, as the biggest concern when adopting Gen AI (60%). Boards are also worried about errors in the underlying data and information skewing the model’s outputs (53%), as well as problems related to cybersecurity (50%).

However, just 30% of directors said that responsible Gen AI usage guidelines have been published and communicated throughout their organisation to mitigate these potential issues. This is even more concerning given that 42% of UK adults said they had entered work-related information into GenAI tools, in a separate KPMG poll. This highlights the need for faster rollout of usage guidelines in the workplace.

Algorithmic bias (43%) was identified as another major worry by board members. Yet just 8% indicated that their organisation has processes in place to measure it.

Leanne Allen, Head of AI at KPMG UK commented on the findings:

“Given boards’ concerns, it’s important that companies thoughtfully define a clear AI strategy rather than merely chase the next technological innovation. This strategy should balance the value, cost, and risk associated with AI use cases. This strategic equilibrium is crucial for both progress and stakeholder trust.”

Almost a quarter (23%) of businesses now have Gen AI training in place to mitigate these risks, or it is currently in development. That said, board education on Gen AI today is primarily ad hoc or self-taught by individual directors (68%), followed by management presentations (48%), and third-party training (48%). Few (5%) boards have, or are actively recruiting for, Gen AI expertise. Interestingly, more UK boards (18%) were reporting they had GenAI expertise than in the US (10%).

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Notes:

1. ‘Hallucination’ is defined as when a large language model (LLM) generates false or misleading information.
   

Methodology:

The research was conducted by the KPMG Board Leadership Centre, during June and July 2024. 40 UK board members across different industries were polled.

Generative AI, or Gen AI, is a type of artificial intelligence (AI) that can understand, summarise, generate, and predict new content such as text, images, and videos.

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For further information please contact:

KPMG Media Relations - Lizzy Chesters

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About KPMG

KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 18,000 partners and staff. The UK firm recorded a revenue of £2.96 billion in the year ended 30 September 2023.

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 273,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.