Enterprises are interested in generative AI, but they are also concerned by “ethics and accountability”. So suggests a new poll of 1,405 enterprises by UK-headquartered professional services outfit EY, which finds 43 percent of enterprises are already actively investing in generative AI (genAI), mostly for employee training and customer service, and almost the same amount (38 percent) want a “measured, incremental” approach to adoption.
EY puts the blame at the door of the vendor community, to help enterprises to understand about the risks and practicalities of deploying generative AI with their technologies, and also to better integrate generative AI with their technologies, including with 5G and IoT solutions.
Tom Loozen, telecoms lead at EY Global, said: “This frontier technology is redefining the possibilities around enterprise transformation. However, there are a host of strategic and practical challenges raised by adoption, not least in relation to data governance. In this landscape, vendors that help enterprises better understand and mitigate the data security, accountability and ethics challenges will win in the market.”
Adrian Baschnonga, lead analyst at EY Global, said: “Integrating different technologies is a priority for businesses, but tech vendors are falling short of expectations. This is not just about better articulation: the study tells us that 59 percent of enterprises don’t believe that sufficient AI capabilities are included in the IoT solutions. Vendors need to close this confidence gap by clearly showcasing the added value derived from combining different technologies.”
A further 30 percent of respondents to the online survey – all at least (self-selected as) “moderately knowledgeable” about IoT and 5G in their organisations – said their organisations expect to invest in generative AI within 12 months; another 13 percent said within two-to-three years. As such, it is in the pipe or on the radar for four fifths (81 percent) of enterprises. But it ranks third among their tech priorities overall, after analytics and AI and automation and robotics.
In both cases, 63 percent of firms are actively investing already. Edge computing, IoT, and 5G rank behind, in that order (see first image). Of those currently investing in generative AI, 80 percent are working on proofs-of-concept, while 20 percent have pilot projects underway; the other, better established technologies, are all further down the road in terms of deployment (see second image). But generative AI fares relatively well as a ‘radical-impact’ tech.
Almost one in five (18 percent) think it will have a profound effect on their business; a further 27 percent and 38 percent say it will have an impact through experimental and incremental initiatives, running side-by-side with machine learning projects. The issue with generative AI, certainly having its moment, is its novelty, and perceived risks. Three quarters (73 percent) of enterprises seek a greater understanding of generative AI concepts and use cases.
Sixty-nine percent say they need to learn more about the risks; 52 percent have concerns around potential job displacement. Meanwhile, the rate of business investment in 5G is up by six percentage points to 79 percent of enterprises, according to the poll. US enterprises lead other regions, with 82 percent investing or planning to invest in 5G, compared with 79 percent of European enterprises and 78 percent of Asian enterprises.
A statement said: “Looking ahead, enterprises rank exploring 5G’s relationship to AI and other emerging technologies as their top future priority for 5G adoption (42 percent). However, the report highlights ongoing challenges around enterprises’ ambitions to combine technologies, with 60 percent stating that vendors do not adequately articulate how 5G and IoT can be integrated with AI.” The report is available here.
