Generative AI (GenAI) and AI will significantly transform industries in the future, according to 81% of global (UK: 75%) respondents to the Dell Technologies Innovation Catalyst Research.
This rises to 91% (UK: 88%) for organisations reporting high (+25%) 2023 revenue growth and dips to 75% (UK: 65%) for those reporting low growth (1-5%), flat revenue or decline.
Based on responses from 6,600 IT and business decision makers across 40 countries (300 from the UK), the research suggests that while there is broad optimism for AI and GenAI, the extent to which organisations are prepared for the rapid pace of change varies greatly. Eighty-two percent (UK: 81%) say they are well positioned competitively and have a solid strategy.
At the same time, nearly half (global: 48%, UK: 41%) of the respondents are uncertain what their industry will look like in the next three to five years and nearly six in 10 (global: 57%, UK: 41%) report struggling to keep pace.
Global results suggest the main barrier to keeping pace and driving innovation is the lack of the right talent (35%), followed by data privacy and cybersecurity concerns (31%). While in the UK, lack of talent is still a concern (40%), it is lack of time (44%) that poses the main challenge, followed by lack of budget (42%).
GenAI implementation
While globally, respondents expect GenAI to deliver the most value by improving IT security posture and productivity (52%), respondents in the UK see more value in the tech’s abilities to streamline processes (34%). However, respondents also expressed awareness of the challenges to overcome.
Globally, sixty-eight percent (UK: 68%) fear GenAI will introduce new security and privacy issues and 73% (UK: 72%) agreed that their data and IP is too valuable to be placed in a GenAI tool where a third party may have access.
More broadly, responses suggest that organisations are working through GenAI practicalities as they transition from ideation to implementation. Compared with other markets worldwide, the UK seems to be further along in implementing GenAI.
Globally, 58% of respondents describe themselves as being ‘early to mid-stage’ in their GenAI journey, but that figure leaps to 71% when considering the UK results. As organisations increase adoption, concern centres around understanding where risks reside and who is responsible for them. Seventy-seven percent (UK: 78%) agree that the organisation, rather than the machine, the user or the public, is responsible for any AI malfunction or undesired behaviour.
Cybersecurity issues
Cybersecurity continues to be a pain point for organisations. These concerns appear well-founded, as 83% (UK: 70%) of respondents say they have been impacted by a security attack in the past 12 months. The global majority (89%) are pursuing a Zero Trust deployment strategy, but when it comes to the UK, the figure drops to 69%. The research also found that 54% of UK respondents (global: 75%) agreed that their security operations mainly consist of patch management and security updates. This presents an opportunity for UK organisations to more widely adopt Zero Trust, a modern and holistic cybersecurity framework.
The top three cited cybersecurity issues included malware, phishing and data breaches. Issues with phishing indicate a broader problem highlighted in the report: employees’ role in the threat landscape. For example, 67% (UK: 66%) of respondents believe some employees circumvent IT security guidelines and practices because they delay efficiency and productivity, and 65% (UK: 51%) say that insider threats are a big concern. This indicates a need to focus on training, as employees are the first line of defence.
Right technology infrastructure
The research also reveals modern data infrastructure’s critical role as technologies like GenAI gather pace and data volumes increase. Investing in a modern, scalable infrastructure was cited as the number one area of improvement for businesses to accelerate innovation. Most IT decision makers (global: 82%, UK: 66%) say they prefer to build, train or use GenAI models on-premises or by taking a hybrid approach. Seventy-three per cent of UK respondents agree that bringing AI to the data creates more value for the organisation because they can control it, the data is fresh, and they have secure access.
Most (global: 82%, UK: 78%) respondents recognise that data is the differentiator for AI integration, and their GenAI strategy must involve using and protecting that data. However, only 1 in 3 (global: 33%, UK: 34%) currently say they can turn data into real-time insights to support innovation efforts. This suggests that more data strategy rigour may be required to respond to the demands of GenAI and the data it will both need and create. Almost half globally (42%) also claim they are ready for the bulk of their data to come from the edge in the next five years, but this reduces to a quarter (24%) in the UK.
Says Steve Young, UK SVP and MD, Dell Technologies:
“The UK has a long history of leading innovation and is well-placed to conscientiously advance transformative technology. The findings support this, revealing that we’re ahead of the curve in implementing AI and GenAI.
“This exciting new wave of disruption and innovation presents massive opportunities for the boldest UK organisations – those with innovation in their DNA. By combining their people’s ingenuity with the right technology and processes, these organisations can take smart risks, stay agile, and carve out competitive advantages.”
Other research findings include:
- Skills: The shortage of talent required for innovation is a global issue, but it’s felt more acutely in the UK, with 72% acknowledging this gap compared to the global average of 67%. This underlines the urgent need for learning agility, AI fluency, and creative thinking.
- Sustainability: Seventy nine per cent (UK: 72%) state they have a clear sustainability roadmap for their company with defined goals to reduce their carbon footprint. Improving energy efficiency is the top environmental sustainability priority for the UK (global: 45%, UK: 59%), with procuring and using more sustainable goods (using recycled materials, etc.) clinching the global number one spot (global: 45% UK: 43%).
- Making IT a strategic partner: Currently, 81% (UK: 77%) of business decision makers have reasons to exclude IT decision makers from strategic conversations, yet both departments ranked a stronger relationship as the second most crucial improvement area.
Read the full results here: http://www.dell.com/innovationcatalyst
The post High-growth firms expect AI and GenAI to transform industry, claims report appeared first on Tech Digest.
Chris Price
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