has become more and more What’s clear is that businesses of all sizes and in all sectors can benefit from generative AI. From code generation and content creation to data analysis and chatbots, the possibilities are vast and the rewards can be huge.
McKinsey estimates that generative AI will add $2.6 trillion to $4.4 trillion in annual revenue to numerous industries. This is just one reason why by 2026, more than 80% of enterprises will be using generative AI models, APIs, or applications. Businesses that act now to reap the rewards will thrive; those that don’t will not remain competitive. However, simply adopting generative AI does not guarantee success.
Proper implementation strategies are required. Modern business leaders must prepare for the future of managing people and machines, integrating artificial intelligence into every part of their business. Long-term strategies are needed to exploit the immediate benefits of generating artificial intelligence while mitigating potential future risks.
If companies fail to address concerns about producing artificial intelligence from day one, they will face consequences, including system failures, copyright exposure, privacy violations, and social harms such as the expansion of bias. However, only 17% of enterprises are addressing generative AI risks, leaving them vulnerable to attack.
Making the right choices now will enable leaders to future-proof their businesses and reap the benefits of artificial intelligence while improving profits.
Businesses must also ensure they are prepared for upcoming regulations. President Biden signed an executive order establishing AI safeguards, the UK hosted the world’s first AI security summit, and the EU introduced its own legislation. Governments around the world are aware of these risks. So must C-suite leaders—which means their generative AI systems must comply with current and future regulatory requirements.
So how do leaders balance the risks and rewards of generative AI?
Businesses that leverage three principles will succeed: human-centered decision-making, robust governance of large language model (LLM) content, and a universal approach to connected AI. Making the right choices now will enable leaders to future-proof their businesses and reap the benefits of artificial intelligence while improving profits.
