The last 12 months have seen an influx in the use of automation and GenAI, especially since OpenAI came onto the scene.

Now it’s predicted GenAI will add as much as $2.7 billion - $4.4 trillion annually to the global economy.

As we head into 2024, how can we expect leaders and their teams to react?

2024: the year to watch for GenAI

A recent report by IBM observes ‘Leadership in the age of AI’, based on its research on 1600+ senior business decision makers in companies across Europe from 15+ industries (eg finance, healthcare, telecoms).

‘In the UK, business leaders are enthusiastically making generative AI deployment a top priority for 2024.’ IBM report

European businesses are starting to embrace GenAI even more, compared to its initial presence just 12 months ago, which initially faced scepticism. Now, it seems to be very popular, where businesses can’t get enough of it and are continuing to use it. As many as,

‘79% of UK business leaders have already deployed generative AI or intend to deploy it within the next year.’ IBM report

Why use GenAI?

The use of GenAI has propelled. Now, it is seen as a ‘transformative tool to drive insights, reduce costs, and improve operational efficiencies’. Organisations want to:

• enhance CX (50%)

• modernise and improve operational efficiency (44%)

• boost sales and revenue (39%)

It’s worth noting how leaders don’t put sales at the top of the list of priorities, suggesting companies want to be remembered for easy-to-use tools, and retain customers from the get-go when using their product.

GenAI’s benefits span industries, including healthcare such as the NHS: AI virtual assistants help HR teams reduce admin burdens, so they can then focus on helping colleagues solve problems in an industry that is already so stretched on resources, money and people (people-power). In procurement, GenAI is automating and simplifying workflows.

Shining a light on transparency

‘97% of UK executives are actively engaged in shaping ethical and governance frameworks for their AI deployment.’ IBM report

Like any technology that’s attracted great interest and use in a short amount of time, security implications and governance need to be considered: whilst leaders have to consider using GenAI for the benefit of their organisation, they also have to think about trust and transparency in every step of the user cycle, who may wonder where and how their data may be used.

Increased adoption goes hand in hand with the evolving regulatory and ethical landscape of this technology. The UK remains behind the rest of the world at 29%, based on developing its AI ethics boards.

What next?

‘41% of UK executives want to focus on upskilling existing employees over the next 3 years.’ IBM report

• Leadership is transforming – leaders want to upskill their existing employees

• More companies are set to embrace Gen AI, but with caution as governance takes a primary place in operations and the procurement function

• Continuous skills development is needed – users need to improve their AI skills, understand how to use the right tools, and safeguard where and when data is used.

• Consider the regulatory and compliance landscape, GenAI tech and ethical implications

• GenAI is set to create a dynamic new landscape for leaders to manage as their teams use new tools – but there’s still a lot to learn