Footnotes
Shivam Batra, Radhika Goel, Sandeep Sharma and Pratham Singh contributed to the interpretation of the survey results, provided critical feedback, and delivered the survey analysis.
2023 KPMG Generative AI Survey
An exclusive KPMG survey shows how top leaders are approaching Generative AI
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Generative AI: From buzz to business value
An exclusive KPMG survey shows how top leaders are approaching this transformative technology.
June, 2023 update
Generative AI technology is advancing at a rapid pace, and so is our analysis of it.
KPMG conducted two surveys of US executives to understand their perspectives on generative AI: the first in March 2023 was conducted right in the midst of the inescapable buzz that followed the launch of ChatGPT. As the initial hype receded, we went back to check with business leaders to see how their thinking on generative AI has changed. In June of 2023, we again surveyed 200 US business executives across industries in organizations with $1 billion or more in revenue on their views of generative AI.
The surveys shed light on emerging trends in the use of generative AI in business, including both the opportunities and threats executives believe generative AI has created.
Our March report also offers insights from KPMG advisory professionals in AI, technology enablement, strategy, human capital, and risk management. They looked at managing the challenges and opportunities associated with generative AI, including the human element, the evolving regulatory environment and how to harness AI in a trusted manner, and the implications it has for the workforce. They share thoughts on how you can responsibly integrate generative AI to empower employees, work smarter, and compete better — and what you can do right now to seize the advantage.
Below are some of the latest insights we discovered.
KEY TAKEAWAYS
An evolution of perspectives from March to June
Top emerging technologies
Generative AI continues to be seen as the top emerging technology. When asked in June 2023, 3 in 4 business leaders find it will be a top three emerging technology over the next 12-18 months. When asked in March 2023, 78% selected generative AI as the top emerging technology over the next 3-5 years.
Functional area impact
IT/Tech, operations, and marketing and sales are the top functional areas that are anticipated to be impacted the most by generative AI, ranking highest among business leaders in both March and June.
Barriers to implementation
Lack of skilled talent remained a top three barrier to implementing generative AI from March to June.
Risk management priorities
Prioritization of risk management has increased since March across the board. In both March and June, cybersecurity was the top area of risk management that business leaders are prioritizing. Risk management measures around weaponization (the use of generative AI to manipulate public opinion) has increased; 29% of business leaders ranked this as high priority in March and 56% did in June.
Business leaders remain optimistic about the overall impact of generative AI on their workforce and concerns have decreased. In March, 59% of business leaders reported that they predict generative AI will have a net positive impact on workforce. In June, 53% of business leaders report that their headcount will likely expand.
Impact on workforce
In both March and June, there were concerns expressed around the employment implications for the workforce broadly. However, June saw a significant decrease in anxiety about companies replacing their current employees with generative AI. Concerns around reduced opportunity for professional development and advancement (41% vs. 26%) and decreased creativity and innovation (30% vs. 16%) have also reduced. Concern around mental health, decreased social interactions, increased unemployment, and creating roles with niches skills remain similar to our earlier findings.
Business leaders remain focused on generative AI ahead of other emerging technologies
Three in four business leaders (74%) rank generative AI as the top emerging technology that will impact their business over the next year and a half. This is comparable to the results from our earlier survey, where 78% said that generative AI would have the biggest impact on business above all other technologies over the next three to five years.
Top three emerging technologies leaders believe will have the biggest impact on their business over the next 12-18 months
Barriers to adoption
Respondents were asked to rank their biggest barriers, where 1 is the biggest barrier, 2 is the second biggest, and 3 is third biggest.
Concerns about the regulatory landscape
Inability to pivot legacy applications
Lack of skilled talent to develop and implement
Business leaders believe generative AI is disruptive but will add value
Disruptive effect
Four out of five believe generative AI will disrupt their entire industry; one in five expect it to cause “significant disruption.”
Perceived value
Nearly all think that generative AI will provide value to their business.
Investment in generative AI is expected to increase
Infrastructure is a top area prioritized for generative AI investment, especially among those that have already deployed the technology.
83%
anticipate increasing investment in generative AI by 50% or more in the next 6-12 months.
31%
plan on increasing infrastructure (cloud and on-premise servers) and computing power.
30%
plan on using generative AI to create scale in business.
27%
say they will invest in AI training.
Most do not believe the regulatory environment will slow generative AI adoption
While they’re concerned about the regulatory landscape, it doesn’t appear to be impacting their investments in generative AI.
77%
say the uncertain and evolving regulatory landscape impacts their Generative AI investment decisions, but feel confident about handling the requirements.
76%
say they are not pausing at all, or are taking only a short (3-6 month) pause to monitor the regulatory landscape.
Generative AI is expected to have positive impact on the workforce
84%
believe that generative AI will have a positive impact on their workforce.
97%
agree to some extent that generative AI will play a role in allowing their organization’s employees to be more thoughtful and creative by relieving them from manual processes.
Most leaders are confident that they can mitigate risks associated with generative AI
77%
are confident in their ability to mitigate risks associated with generative AI.
80%
of those that already deployed generative AI are confident in their ability to mitigate risks.
Prioritizing effective risk management has increased across the board
63%
rate privacy concerns with personal data as a top risk.
62%
rate cybersecurity as a top risk.
61%
rate legal, copyright, and intellectual property issues as a top risk.
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Elliot Brook
Principal, Advisory, Lighthouse, KPMG US
Steve Chase
Vice Chair – Artificial Intelligence & Digital Innovation, KPMG US
Per Edin
US AI Go-To-Market Leader, KPMG LLP
Emily Frolick
KPMG Trusted Leader, Principal, Advisory, KPMG US
Sreekar Krishna, PhD
National Leader of Artificial Intelligence and Head of Data Engineering, KPMG US
Todd Lohr
US Head of Technology Consulting, KPMG LLP
Felicia Lyon
Principal, Human Capital Advisory, KPMG US
Bryan McGowan
Global and US Trusted AI Leader, KPMG US
Mark Shank
Principal, Advisory, Lighthouse, KPMG US
Elliot Brook
Principal, Advisory, Lighthouse, KPMG US
Steve Chase
Vice Chair – Artificial Intelligence & Digital Innovation, KPMG US
Per Edin
US AI Go-To-Market Leader, KPMG LLP
Emily Frolick
KPMG Trusted Leader, Principal, Advisory, KPMG US
Sreekar Krishna, PhD
National Leader of Artificial Intelligence and Head of Data Engineering, KPMG US
Todd Lohr
US Head of Technology Consulting, KPMG LLP
Felicia Lyon
Principal, Human Capital Advisory, KPMG US
Bryan McGowan
Global and US Trusted AI Leader, KPMG US
Mark Shank
Principal, Advisory, Lighthouse, KPMG US