Ria Pinto | General Manager | Technology Leader | IBM South Africa | mail me |
A new study by our Institute for Business Value found that the surveyed CEOs are facing workforce, culture and regulation challenges as they act quickly to implement and scale generative AI across their organisations.
The annual global study of 3,000 CEOs from over 30 countries and 26 industries, including South Africa, found that 64% of those surveyed say succeeding with generative AI will depend more on people’s adoption than the technology itself. However, 57% of local respondents say they are pushing their organisations to adopt generative AI more quickly than some people are comfortable with.
Impact of generative AI on employees
The findings also revealed that nearly two-thirds (65%) of surveyed South African CEOs say their teams have the skills and knowledge to incorporate generative AI, but few understand how generative AI adoption impacts their organisation’s workforce and culture.
More than half (57%) of respondents have not yet assessed the impact of generative AI on their employees. Yet, 53% of local CEOs surveyed say they are hiring for generative AI roles that did not exist last year, while 43% expect to reduce or redeploy their workforce in the next 12 months because of generative AI. However, more than half (51%) of CEOs identified regulatory constraints as the greatest barrier to innovation in their organisation.
More South African organisations are embracing generative AI into their enterprise strategies to drive significant results and achieve sustainable impacts on their bottom line.
By integrating cutting-edge artificial intelligence (AI) solutions in their workflows, local companies can enhance operational efficiency and unlock new opportunities for growth and innovation. As more businesses digitise their business models, it is critical to understand the impact of new technologies on the workforce culture and upskill employees to grow their confidence, ensuring the company stays competitive in an ever-evolving market.
Other findings
Workforces are straining under the pressure of generative AI adoption:
- 57% of local CEOs say their recruiting and retention efforts deliver skills and expertise needed to achieve business objectives.
- Yet, more than half (51%) of respondents say they are already struggling to fill key technology roles.
- CEOs surveyed say 36% of their workforce will require retraining and reskilling over the next three years.
Product and service innovation, and forecast accuracy are top priorities
- Neary half (49%) of CEOs surveyed ranked product and service innovation as their highest priority for the next three years, this is higher than the global average of 37%.
- This was followed by 43% of CEOs prioritising forecast accuracy to understand the volumes of sale.
- Lastly, nearly half (49%) of SA CEOs say their competitors would view them as leading in innovation.
Click here to view the full study, including actionable strategies to help organisations navigate the complexity of generative AI adoption.
Related FAQs: Generative AI impact on productivity and efficiency
Q: How can I use generative AI to improve productivity in my organisation?
A: You can leverage generative AI tools to automate repetitive tasks, streamline processes and enhance content creation, which can significantly boost your productivity and efficiency.
Q: What are some effective use cases for generative AI in the workplace?
A: Generative AI use cases include automating report generation, creating marketing content, designing products and improving customer service through AI applications like chatbots.
Q: Are there any free generative AI tools that can help boost my productivity?
A: Yes, there are several free generative AI tools available that can help automate tasks and enhance content creation, allowing you to explore the potential of generative AI without any financial commitment.
Q: How does generative AI enhance content creation?
A: Generative AI can generate high-quality text, images and designs, allowing teams to produce content more efficiently and focus on strategic tasks, thus improving overall productivity.
Q: What is the potential of generative AI in automating routine tasks?
A: The potential of generative AI in automation is vast; it can streamline workflows, reduce human error and free up time for employees to engage in more creative and value-added activities.
Q: How can I integrate AI technologies into my existing systems?
A: You can integrate AI technologies by identifying areas that can benefit from automation and using generative AI tools to enhance those processes, ensuring a seamless transition and improved efficiency.
Q: What do I need to understand about generative AI before implementing it in my organisation?
A: Understanding generative AI’s capabilities, such as its ability to generate content and automate tasks, is crucial for identifying the best use cases and ensuring successful implementation.
Q: Can generative AI help in product design and development?
A: Yes, generative AI can significantly assist in product design through generative design techniques, allowing for rapid prototyping and innovation, which can improve efficiency in the development process.
Q: How can I measure the success of implementing generative AI tools?
A: You can measure success by tracking key performance indicators such as time saved on tasks, the quality of generated content and overall improvements in productivity and efficiency after integrating generative AI tools.
