TECHNOLOGY | AI
While CEOs agree their organisations need to act now on GenAI … they are also acutely aware of the uncertainty around GenAI
Andrea Guerzoni EY Global Vice Chair for Strategy and Transactions
their organisation . The decision to invest ( or not ) is primarily a strategic one , says Guerzoni , and can depend on industry context , AI maturity , available resources and the specific problems the company is trying to solve .
For many , there is a strong case for the strategic use and investment in Gen AI , although the opportunities to create efficiencies and improve talent and skill developments are currently clearer than driving top-line growth .
“ It is also crucial for CEOs to consider associated risks , ethical implications and the need for a robust risk management framework ,” he says . “ Formulating a balanced and well-thought-out AI strategy that aligns with the company ’ s overall business objectives and risk appetite is key .”
The survey highlights some regional differences that set CEOs from the APAC region apart from their global counterparts . One of the most striking is the approach towards funding for these investments in AI . While almost a quarter ( 23 %) of global CEOs prefer raising new capital for their AI investments , only 15 % of Asia-Pacific CEOs share this approach . Instead , 42 % of Asia- Pacific CEOs indicated they will reallocate capital from other investment budgets and another 32 % prefer to draw from their existing technology budgets .
Guerzoni says the differing approaches to funding reflects different capital market dynamics globally and where venture capital is more readily available .
Not only is the sheer rate of advancement a challenge for CEOs when it comes to devising their strategy – which impacts their ability to remain up-to-date with their knowledge and capabilities – but it is also hard to choose partners to work with .
“ Of the CEOs surveyed , 67 % reported that it has become harder to identify credible partners or acquisition targets , due to a sharp increase in companies claiming to be experienced in AI ,” says Guerzoni . “ This challenge can complicate the process of finding reliable assistance and collaboration in the AI landscape .”
The ability to find reliable , knowledgeable partners is essential , and Guerzoni argues that the APAC region could benefit more than most from the Gen AI opportunity .
“ APAC could potentially benefit more given the region ’ s willingness to embrace and invest in AI , the technology-driven economies , and its vibrant AI start-up / venture ecosystem ,”
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