At Oslo Business Forum, Louise Petri, Director, EY Parthenon, and Mads Ribe, Associate Partner, EY Law, revealed findings and key insights from the latest EY CEO Survey, The State of Generative AI in Norway.
Although it seems the conversation surrounding generative AI has just begun swirling, artificial intelligence has been around for decades. The term was first coined in the 1950s when people began to talk about the science of machines that can “think.” In the 1980s, we saw machine learning, and in the 2010s, deep learning. Since then, AI has undergone massive development, culminating in the widespread adoption of generative AI with ChatGPT last year.
Is generative AI relevant for the future or just hype?
As generative AI becomes more and more pervasive, EY researchers want to know: do business leaders consider AI relevant for the future or just hype?
To develop a deeper understanding of the state of AI today, EY surveyed 1,200 global CEOs and 140 organizations from Oslo Business Forum. The responses are summarized here.
Executive Perspectives
The EY CEO Survey explored the implementation of generative AI beyond individual use. 40% of organizations at Oslo Business Forum reported adoption of generative AI.
The most common functions leveraging generative AI include:
- Branding, Marketing, and Communications
- Sales
- Research & Development
- Strategy and Business Development
- Operations
- Customer Support
Generative AI is least commonly used in the following functions:
- Legal
- Sustainability/ESG
- Logistics
- Procurement
- Human resources
The number of functions that have not yet adopted generative AI indicates significant untapped potential and missed opportunity.
An astounding 9 out of 10 Norwegian CEOs report they are struggling with generative AI implementation. However, they are not focused on the cost of implementation. Rather, they blame a lack of talent or capabilities. The important implication of this finding is that you must focus on your people.
Ethical and legal risks are top of mind when it comes to discussions on generative AI globally. In its survey, EY found:
- 65% of global CEOs see a need to address the ethical and legal risks associated with generative AI.
- 22% of organizations at Oslo Business Forum have established a governance framework.
It appears that management and compliance are playing catch-up. Generative AI is being spread widely but without central guidelines and steering. Leaders must be aware of the inherent risk in AI and establish appropriate guidelines, particularly regarding data privacy.
There is no doubt that generative AI presents opportunities for increased efficiency, cost savings, and other top-line and bottom-line gains. In its survey, EY found:
- 65% of global CEOs consider AI to be a value driver.
- 25% of organizations at Oslo Business Forum have established a strategic framework.
These findings indicate that leaders see strong potential to embed generative AI in their business functions, but their implementation may be lagging. If leaders really want to move the needle, they must do so in a structured manner.
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Mads Libe, Associate Partner, EY Law and Louise Petri, Director, EY Parthenon at Oslo Business Forum 2023.
5 Actionable Recommendations
EY has developed five 5 actionable recommendations for leaders implementing generative AI in their businesses:
1. Build your foundation. Train your teams to develop and test generative AI use cases safely. Build awareness around the insights you gain and guidance.
2. Define your strategy. Form a solid understanding of how generative AI can potentially disrupt or provide a competitive edge to your business.
3. Equip and upskill your workforce. Ensure you have the necessary training and tools in place for employees to leverage and capitalize on generative AI’s capabilities.
4. Ensure confidence. Create the proper governance structure to address the compliance and ethical considerations of generative AI.
5. Transform your functions. Dare to introduce new ways of working with generative AI as a valuable sidekick or at the core of your business.
In summary, it’s safe to say generative AI is more than just hype. It is a powerful technology with the ability to transform your business. However, business leaders must remain vigilant of the ethical perspectives and limitations associated with AI.
EY has pledged to continue building a better working world where generative AI and human interaction can co-exist in harmony. Louise and Mads called upon leaders at Oslo Business Forum to do the same.
Key Points
- 40 percent of organizations at OBF have adopted generative AI. The most common functions using AI include branding, marketing, and communications, sales, and research and development. AI is least commonly used in functions like legal, sustainability/ESG, procurement, and logistics.
- 9 out of 10 CEOs in Norway report struggling with generative AI implementation. Their primary concern is with a lack of talent or capabilities.
- 65 percent of global CEOs see a need to address the ethical and legal risks associated with generative AI. But only 22 percent of organizations at OBF have established a governance framework.
- 65 percent of global CEOs consider AI to be a value driver. But only 25 percent of organizations at OBF have established a strategic framework.
- EY has established five actionable recommendations for leaders implementing generative AI in their businesses:
Questions to Consider
- Do you consider generative AI relevant for the future, or is it just hype?
- Have you built and communicated a strategic framework that guides your business’ use of generative AI?
- Which of your business functions are the most common users of generative AI?
Can you tap into missed opportunities by leveraging generative AI in other functions? - Have you built a governance framework that guards against the ethical and legal risks associated with AI?
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