Business leaders concerned about Gen AI, KPMG says

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

Respondents cited the inaccuracy of results, including “hallucinations”, 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 a mere 8% indicated that their organisation has processes in place to measure it.

Fortunately, 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%).

Leanne Allen, head of AI at KPMG UK, said: “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.”