Key Findings

  • PwC notes that in industries such as healthcare, technology, and financial services, although companies are racing to invest in generative artificial intelligence (AI), only 58% of executives have completed an initial assessment of AI risks.
  • About three-quarters (73%) of executives say they have used or plan to use AI, including generative AI, with a slightly higher proportion of companies aiming to apply the technology only to operational systems, according to PwC.
  • "Companies that delay integrating AI into their core business may find themselves falling too far behind to catch up," PwC said in describing the results of its April survey of 1,001 executives from private and public institutions. While embracing this promising new technology, business leaders have begun to realize the challenges of "managing risks and retaining the incremental value created by these solutions."

Deep Insights

The World Economic Forum says the rapid development of AI has outpaced corporate efforts to control the technology's business risks, based on a survey of chief risk officers (CROs) at large companies and international organizations. In its July 2023 report, the Forum noted that three-quarters of CROs believe AI use poses a risk to their organization's reputation, while nine out of ten CROs support stronger regulation of the technology's development and use. Nearly half of respondents believe AI progress should be slowed or paused until AI risks are better understood.

CROs told the Forum that AI's "opaque" internal workings could lead to unintended sharing of personal data or cause AI algorithms to trigger biased decisions. Additionally, the Forum pointed out in the "Global Risks Report 2024" that AI is increasingly becoming a powerful tool for creating disinformation.

"Easy-to-use interfaces for large-scale AI models, requiring no specialized skills, have already spawned a flood of fake information and so-called 'synthetic content,' ranging from sophisticated voice cloning to counterfeit websites," the Forum said in January. "Over the next two years, synthetic content will manipulate individuals in multiple ways, harm economies, and tear at societies," the Forum predicted.

U.S. President Joe Biden signed an executive order late last year aimed at accelerating AI development while protecting consumers, workers, and businesses from its potential harms. Under the order, developers of advanced AI systems must report AI safety test results and other information to the Department of Commerce. Additionally, nine federal agencies have submitted assessments of risks from AI use in the power grid and other critical infrastructure.

The UK's Department for Science, Innovation and Technology noted in a May report that AI also exacerbates the threat of cyberattacks facing businesses. The agency said: "Although AI technologies have improved efficiency and productivity, they remain vulnerable to increasing security threats and vulnerabilities." The report examined the stages of the "AI lifecycle"—from design and development to deployment and maintenance.

PwC says curbing AI risks is a long-term effort. "It is an ongoing commitment that needs to be embedded in every step of AI technology development, deployment, use, and monitoring."