GenAI set to transform Irish businesses, but trust and governance remain key

Despite the enthusiasm, there are evolving concerns about GenAI’s impact business, says Martin Duffy

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Martin Duffy, PwC

PwC’s latest GenAI Business Leaders Survey reveals that 83% of Irish business leaders expect GenAI to significantly impact their organisations over the next five years, a 9% increase from the previous survey in November 2023. This anticipation is driving executives to explore GenAI applications in areas such as customer targeting, financial planning, marketing, strategic planning and supply chain management.

The latest survey provides insights from top executives across various industries, highlighting a business landscape on the brink of transformation. Despite the enthusiasm, there are evolving concerns about GenAI’s impact on jobs and other business areas.

Shifting perceptions and job concerns

The survey found a notable shift in how executives view GenAI’s impact on employment. Only 55% now believe that GenAI will increase jobs or have no net effect, down from 82% in the previous survey. This change reflects the areas where organisations already see value, such as increased productivity, operational efficiency and enhanced customer experiences.

Despite these job-related concerns, Irish business leaders remain optimistic about GenAI’s overall economic impact. Seventy-seven per cent expect GenAI to positively affect the Irish economy over the next five years, similar to the 74% reported in November 2023.

Cyber security and governance

Trust and governance are critical as businesses navigate GenAI’s challenges and opportunities. An overwhelming 91% of respondents believe GenAI will likely increase cybersecurity risks within the next year, surpassing concerns about legal liabilities, reputational risk and misinformation.

The survey highlights that trust is a critical focus for Irish business leaders.  However, only 7% reported to currently have AI and/or GenAI governance structures in place, similar to last November (6%).  At the same time, a significant majority (75%) are planning or developing a plan to have GenAI governance structures in place, up from 56% last year.

Another critical consideration is compliance with emerging regulations, such as the EU AI Act. Despite the newness of such legislation, 84% of Irish business leaders support the EU AI Act and similar regulations as necessary to mitigate potential AI risks.

Evolving roles and integration

The survey indicates a shift in how AI roles are perceived within organisations. The percentage of companies with a nominated person heading AI across the enterprise has dropped from 20% to 7%. This suggests that AI is now seen as a tool for various business functions rather than being confined to data scientists. Notably, 77% of these roles now sit within IT departments.

Unlocking GenAI’s full potential

The survey reveals that eight in ten respondents believe GenAI will significantly change how their organisations create, deliver, and capture value within the next three years. Additionally, 50% expect GenAI to increase profitability by more than 5%, and 40% believe it will boost revenue by over 5%.

To help businesses capitalise on the technology’s transformative potential, PwC recently launched the PwC GenAI Business Centre, powered by Microsoft technology. This centre is designed to help business leaders make the most of GenAI by providing them with the tools, expertise and toolkits needed to deploy AI responsibly. At the GenAI Business Centre, users can better understand AI, work directly with the technology and create a plan for integrating it into their organisations.

Until you have an opportunity to visit the PwC GenAI Business Centre for a, in-person workshop, the survey highlights the critical actions businesses should prioritise to realise GenAI’s potential and maximise its value. These include focusing on well-defined use cases, adopting a human-led and tech-powered approach, and leveraging governance to realise benefits responsibly and securely.

As Irish businesses continue their GenAI journey, the importance of trust, governance and responsible adoption and use cannot be overstated. By prioritising these factors and leveraging the expertise of trusted partners, organisations can harness GenAI’s power to drive innovation, efficiency and growth while mitigating potential risks and challenges.

For more detailed insights, read the full PwC GenAI Business Leaders Survey report.

Martin Duffy is head of GenAI at PwC