Despite the promises of generative AI (Gen AI), business leaders have significant concerns about its implications for performance, according to research from KPMG UK. Respondents cited the inaccuracy of results, including ‘hallucinations’, as the biggest concern when adopting Gen AI (60%).
► Guidance and education slow to materialise
► Data errors, skewed outputs and cybersecurity are also concerns
KPMG defines an AI ‘hallucination’ as an occurrence in which a large language model (LLM) generates false or misleading information. Boards are also worried about errors in the underlying data and information skewing the model’s outputs (53%), as well as problems related to cybersecurity (50%).
Only 30% of directors said that responsible Gen AI usage guidelines have been published and communicated throughout their organisation to mitigate these potential issues. This is even more concerning given that 42% of UK adults said they had entered work-related information into GenAI tools, in a separate KPMG poll. This highlights the need for faster rollout of usage guidelines in the workplace.
Algorithmic bias (43%) was identified as another major worry by board members. Yet a mere 8% indicated that their organisation has processes in place to measure it.
Commenting on the findings, Leanne Allen, head of AI at KPMG UK, said: ‘Given boards’ concerns, it’s important that companies thoughtfully define a clear AI strategy rather than merely chase the next technological innovation. This strategy should balance the value, cost, and risk associated with AI use cases. This strategic equilibrium is crucial for both progress and stakeholder trust.’
Fortunately, almost a quarter (23%) of businesses now have Gen AI training in place to mitigate these risks, or it is currently in development. That said, board education on Gen AI today is primarily ad hoc or self-taught by individual directors (68%), followed by management presentations (48%), and third-party training (48%). Few (5%) boards have, or are actively recruiting for, Gen AI expertise. Interestingly, more UK boards (18%) were reporting they had GenAI expertise than in the US (10%).
