Leaders at 73% of companies where artificial intelligence is already having an extensive impact on their business model believe they are gaining a strategic advantage, but a similar percentage see the associated risk as a significant organisational concern.
A global report shows that many of those companies are preparing for the increased risk as well as the increased infrastructure required to succeed in an AI-powered business environment, putting them in a favourable position to succeed against their competition.
“Executive teams and boards must recognise that AI’s benefits and risks rise in tandem. Governance, talent, and infrastructure are critical, not optional,” report co-author Mark Beasley, CPA, professor and director of the Enterprise Risk Management (ERM) Initiative at North Carolina State University, said in a news release. “This research underscores that organisations with a deliberate approach to readiness are already pulling ahead in measurable ways.”
The report, Executive Perceptions of Artificial Intelligence (AI) Opportunities and Risks: A Global Analysis, is a joint study conducted by the ERM Initiative and the AICPA and CIMA that surveyed 1,735 executives globally. The eight regions in the survey are: Europe and the UK, North America, South Africa, Central and West Africa, the Middle East and North Africa, Central and South Asia, East and South East Asia, and Australia and New Zealand.
About 26% of leaders (453) were labelled as working at “AI-transformed entities” based on their companies’ business model being “mostly” or “extensively” affected by AI.
Among those companies:
- 73% said AI was providing a strategic advantage, but 69% classified AI as a top 10 or major risk.
- 65% of the AI-transformed entities said that AI risk has become a focus of executive leadership. Among the other survey respondents, just 18% said the same.
- About 1 in 2 of the AI-transformed entities said their companies “mostly” or “extensively” have access to the talent and skills needed to integrate generative AI, and about the same proportion said they had access to the needed IT systems. Among the other survey respondents, about 1 in 7 said they had significant access to the talent and skills needed, and about 1 in 6 said they had access to needed IT systems.
“The data shows a widening gap, and early adopters are gaining competitive advantage while also taking AI risks more seriously,” said Tom Hood, CPA/CITP, CGMA, executive vice-president–Business Growth & Engagement at the Association of International Certified Professional Accountants. “Leaders who invest in readiness today will shape the opportunity curve tomorrow.”
Where Europe and the UK stand and what’s next
What the survey shows in Asia and South Africa could portend what’s to come in Europe and the UK.
While about 26% of respondents work at AI-transformed entities, that percentage jumps to 37% in South Africa and East and South East Asia, and 36% in Central and South Asia. Europe and the UK were below the curve at 22%.
What could be driving that level of AI activity in Asia and South Africa that doesn’t yet seem to be as pronounced in Europe and the UK?
Around 40% of leaders in Asia and South Africa said they were concerned about the threat of competitors more effectively leveraging AI, compared with 26% in Europe and the UK and 30% in the whole survey. About 40% in Asia and South Africa said emerging generative AI provides a strategic advantage for their companies, compared with 19% in Europe and the UK and 27% in the whole survey.
“AI is no longer a peripheral innovation,” Hood said. “It’s a strategic accelerant separating organisations that are building foundational capabilities from those still exploring its potential.”
Those regions all viewed AI-related risk through a similar lens, with between 21% and 23% in each region viewing AI as a top 10 risk (23% across the full survey).
Not investing in AI is also a risk, as that decision could put organisations behind their competition. As Hood noted: “Moving from awareness to action is essential. By strengthening your organisation’s AI readiness today, you position it to capture tomorrow’s transformative opportunities.”
The release noted Association efforts to close the AI readiness gap, including hosting AI leadership forums, conducting global research, providing targeted skills development, and offering guidance on responsible AI use.
Read the full report for further insights and breakdowns by company type and size.
— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.
