It becomes more and more It’s clear that businesses of all sizes and industries can benefit from generative AI. From code generation and content creation to data analysis and chatbots, the possibilities are vast and the rewards abundant.
McKinsey estimates that generative AI will add 2.6 trillion to 4.4 trillion dollars per year in many sectors. It’s just one of the reasons why more than 80% of companies will work with generative AI models, APIs or applications by 2026. Companies that act now to reap the rewards will thrive; those who don’t will not remain competitive. However, simply adopting generative AI does not guarantee success.
A good implementation strategy is necessary. Modern business leaders must prepare for a future where they manage people and machines, with AI integrated into every aspect of their business. A long-term strategy is needed to harness the immediate benefits of generative AI while mitigating potential future risks.
Companies that fail to address concerns about generative AI from day one risk consequences including system failure, copyright exposure, privacy violations, and social harms such as amplification prejudices. However, only 17% of companies face the generative risks of AI, which makes them vulnerable.
Making the right choices now will enable leaders to future-proof their businesses and reap the benefits of AI while improving their bottom line.
Businesses also need to ensure they are prepared for upcoming regulations. President Biden signed a decree to create safeguards against AI, the UK hosted the first AI Security Summit, and the EU presented its own legislation. Governments around the world are aware of the risks. C-suite executives need to be too – and that means their generative AI systems must meet current and future regulatory requirements.
So how do leaders balance the risks and rewards of generative AI?
Companies that build on three principles are poised for success: human-centered decision-making, strong content governance of large language models (LLMs), and a universal approach to connected AI. Making the right choices now will enable leaders to future-proof their businesses and reap the benefits of AI while improving their bottom line.
