Paul Jarvis

According to a survey of 450 business leaders carried out by Dentons, including CEOs, COOs and General Counsel across the UK, Ireland and the Middle East, corporate-level AI decisions are being ensnared between two competing beliefs:

Confidence is high that AI will reap rewards:

• 70 per cent of those surveyed by Dentons believe AI adoption and implementation is the key growth driver for their business.
• 52 per cent anticipate that in three years’ time between 11 per cent and 20 per cent of their revenue will be directly attributed to AI.
• 98 per cent think AI will provide more revenue than human employees by 2042.

But regulatory uncertainty is creating inactivity risk:

• 69 per cent are delaying important AI investment decisions due to an expected increase in regulation.
• 73 per cent are concerned that inconsistent AI regulation will have a major impact on their organisation and its growth strategy.
• 63 per cent do not have a formalised AI roadmap in place.
• 65 per cent believe organisations that fail to embrace AI-driven change are increasingly unviable.

According to Dentons’ survey, the majority of organisations expect to be spending significantly more on AI in three years’ time than in the next 12 months, and also predict the technology will be a markedly greater contributor to revenue by the same time horizon.

In the short term, however, businesses are delaying investment decisions until the regulatory outlook is more certain.

“AI is near the top of every boardroom agenda, but there is a significant gap between ambition and action,” said Dentons’ UK, Ireland and Middle East CEO Paul Jarvis.

“We asked organisations what they thought their spending on and revenue from AI would be in three years’ time, with most predicting a marked increase in both areas. This suggests that they are pausing investment decisions by a matter of years, rather than months, indicating the extent of uncertainty in the market.

“While most business leaders recognise AI’s potential to transform their business, almost two-thirds of them do not have an implementation roadmap in place.

“With the stakes so high, action to deploy AI needs to rapidly catch up with ambition and optimism. Even though fragmented and rapidly changing regulations across the world are having a chilling effect on AI investment levels, our view is this lack of consistency needn’t cause delay.

“‘AI Traction’, which we distinguish as clear strategic thinking and effective risk management by implementing a robust governance framework, can support positive and progressive AI adoption, unlocking the many benefits this technology promises.”

Dentons’ report, ‘Laws of AI Traction’, examines why the gap between ambition and action exists, and how to close it.

View Laws of AI Traction.