93% of Large Companies View AI as Essential, but Face Severe Talent Shortage

93% of large firms see AI as essential, but talent remains constraint: Report

The report also highlights significant concerns surrounding the ethical and regulatory aspects of AI. (Bloomberg) A new research released by UST, a digital transformation solutions company, shows that 93% of large companies consider AI essential to their success, yet more than three-quarters are struggling with a severe shortage of AI-skilled personnel. Additionally, the report titled "2024 AI in the Enterprise" highlights that 70% of organisations are concerned that a lack of diversity within their AI workforce may lead to biased outcomes. Krishna Sudheendra, chief executive officer of UST said, "AI is a groundbreaking technology already accelerating innovation across industry sectors, improving productivity, and redefining what is possible in unimaginable ways". While 92% of companies report that their AI implementation aligns with their strategic goals, only 5% stated they face no significant challenges in deployment. This highlights the complexity of integrating AI into business processes, where talent shortages, regulatory hurdles, and ethical considerations often impede progress. The survey results show that 76% of respondents cite a severe shortage of AI-skilled personnel, underscoring the urgent need for workforce upskilling and external support to facilitate AI adoption. The report identifies several key obstacles to effective AI implementation. Security concerns top the list at 47%, followed closely by regulatory compliance issues (44%) and a lack of external expertise (32%). Interestingly, fewer than 40% of organisations expressed confidence in their responsible AI frameworks, and around 70% are worried that a lack of diversity in their AI workforce could result in biased outcomes. Regional Insights India stands out among the surveyed markets, with 24% of companies allocating the highest proportion of revenue to digital technology and tools. The report reveals that the primary drivers for AI adoption in India include productivity and enhanced customer experience, each cited by 60% of respondents. However, security concerns (47%) and regulatory compliance (44%) are significant barriers to AI implementation in the country. In contrast, companies in the USA, UK, and Spain report varying levels of AI adoption, with challenges ranging from talent shortages to ethical concerns. Despite these challenges, 89% of respondents believe that increasing AI spending is crucial to staying competitive. AI Spending and ROI Expectations The report also provides insights into AI spending and return on investment (ROI). Currently, 5% of companies spend more than half of their technology budgets on AI, with 18% predicting they will reach this level within the next three years. On average, organisations expect to see a return on their AI investments within two years, although nearly a quarter (23%) anticipate that it will take four or more years. Moreover, the survey reveals that AI is increasingly seen as a tool for achieving ESG (Environmental, Social, and Governance) goals. Almost 9 in 10 respondents believe that AI can help their organizations work towards net zero targets, with 91% acknowledging AI's significant ESG benefits. Ethical and Regulatory Challenges The report also highlights significant concerns surrounding the ethical and regulatory aspects of AI. A majority (91%) of respondents agree that robust regulations are essential for responsible AI implementation, with data privacy, transparency, and ethical usage identified as the main drivers for regulation. Despite the consensus on the need for regulation, 71% believe that their governments are not doing enough in this area, and 64% feel that industry efforts are also lacking. Regarding diversity, 80% of respondents consider it crucial for their AI workforce, yet 32% acknowledge a lack of diversity within their teams, raising concerns about potential biases in AI outcomes. Adnan Masood, chief architect of AI & Machine Learning at UST, said: "The absence of mature AI governance frameworks is a glaring problem that enterprises can no longer ignore. Soon, AI regulations and privacy-first AI will become essential to modern platforms." In response to these challenges, UST has launched an initiative to train over 25,000 employees -- approximately 80% of its workforce -- in Generative AI skills.

93% of large companies view AI as essential to success, but more than three-quarters face severe talent shortage: UST survey

A UST-commissioned survey of 600 IT leaders in large companies highlighted widespread AI integration challenges, including a lack of skilled personnel and regulatory complexities. Despite recognizing AI's strategic importance, most firms struggle with implementation and foresee the need for increased spending and external guidance to stay competitive.Most organisations are clearly on board the artificial intelligence (AI) ship but lack a skilled AI workforce and need a compass to help navigate these uncharted waters, found research commissioned by digital transformation solutions company UST. A report based on the research on 'AI in the Enterprise' said that obstacles to effective implementation frequently include a lack of in-house AI skills, increasingly complex regulatory requirements and mounting ethical concerns. These factors create uncertainty, slowing AI implementation and preventing the technology from reaching its full potential, it said. UST surveyed 600 senior IT decision-makers in large companies ($500m-plus revenue) across the US, UK, India and Spain, representing a combined revenue of more than $10 trillion. AI enablement continues to be of paramount importance for large businesses, with more than half (54%) using and integrating AI throughout their organisations, more than a quarter (28%) using it throughout the business but in an unstructured way, and 16% just starting to experiment with AI. Only 1% said they do not use AI and they have no plans to do so. Significantly, 92% said their company's AI implementation aligns with their strategic goals, and 93% said they believe AI would be essential to success in the next five years. However, only 8% said that they do not face barriers to these goals, highlighting that despite the broad recognition of AI's importance and strategic value, most organisations encounter substantial obstacles that hinder AI implementation. About 9 in 10 (89%) said their organisation needs to increase spending on AI implementation to keep up with its competitors. More than three-quarters (76%) said there is a severe shortage of AI-skilled personnel within their organisation. Consequently, almost nine in 10 (89%) said their organisation needs external guidance on implementing AI effectively, with more than half (57%) planning to engage with external third-party AI expertise in the next three years. Two-thirds (67%) said there are insufficient external advisors focusing on AI implementation, and more than a third (38%) said external expertise is less expensive than in-house. Further, nearly a third (31%) of respondents said they cannot upskill their own workforce. Regarding their AI workforce, 80% said that diversity is crucial or very important. However, 32% said their AI team is lacking diversity. In addition, 70% expressed concerns that this lack of diversity leads to biased outcomes. "AI is a groundbreaking technology already accelerating innovation across industry sectors, improving productivity, and redefining what is possible in unimaginable ways," said Krishna Sudheendra, CEO, UST. "This research comprehensively shows AI's myriad benefits and challenges for businesses. By shining a light on the dominant hurdles to effective AI integration, we hope to help enterprises identify the right tactics and facilitate greater adoption of AI."

UST AI Report: 93 per cent of Large Companies View AI as Essential to Success, but More Than Three-quarters Face a Severe Talent Shortage

Bengaluru (Karnataka) [India], August 20: New research commissioned by UST, a leading digital transformation solutions company, finds that most organizations are clearly on board the AI (artificial intelligence) ship but lack a skilled AI workforce and need a compass to help navigate these uncharted waters. Obstacles to effective implementation frequently include a lack of in-house AI skills, increasingly complex regulatory requirements, and rising ethical concerns. These factors create uncertainty, slowing AI implementation and preventing the technology from reaching its full potential. This comprehensive survey on AI in the Enterprise surveyed 600 senior IT decision-makers in large companies ($500m+ revenue) across the US, UK, India, and Spain. The companies surveyed represent a combined revenue of more than $10 trillion.

Companies lack skilled workers to onboard AI: Survey

New research commissioned by digital transformation solutions company UST finds most organisations surveyed may have onboarded artificial intelligence (AI) but suffer from a lack of skilled workforce and "a compass to navigate uncharted waters". As much as 93 per cent view AI as essential to success, but more than three-quarters face severe talent shortage. They have also run into complex regulatory requirements and rising ethical concerns, slowing implementation and preventing AI from reaching its full potential, the study found. The study, titled 'AI in the Enterprise', had surveyed 600 senior IT decision-makers in companies ($500-plus million revenue) across the US, the UK, India and Spain with a combined revenue of $10-plus trillion. Accelerating innovation Krishna Sudheendra, CEO, UST, said AI is already accelerating innovation, improving productivity, and redefining what is possible in unimaginable ways. "This research shows its myriad benefits and challenges for businesses. By shining a light on dominant hurdles to effective AI integration, we hope to help enterprises identify right tactics and facilitate greater adoption," he added. Adnan Masood, Chief Architect-AI and Machine Learning, UST, said the absence of a mature AI governance framework is an issue that enterprises can no longer ignore. Ninety per cent of those surveyed agree that robust regulations are needed to guide development and mitigate risks as AI becomes deeply embedded in society. Soon, privacy-first AI and regulations will become essential to modern platforms with algorithmic transparency, explainability, and risk metrics. Also read Investment advisers, research analysts should disclose AI tool usage to clients: SEBI Google to expand AI initiatives focusing on language barriers, agricultural efficiency Target's India GCC helps build its GenAI-powered chatbot R Systems launches OptimaAI Suite for enterprise AI adoption UST had recently launched an initiative to train more than 25,000 employees -- approximately 80 per cent of its workforce -- with generative AI skills, following the launch of its UST AlphaAI solution for business agility and digital transformation. The report mentions three findings: Management buy-in: More than half of large businesses use and integrate AI throughout the organisation, and nearly a third of them run it in an unstructured way. An estimated 16 per cent are just starting the experiment. Only one per cent do not use AI or plan to do so. For 92 per cent, AI implementation aligns with strategic goals, and 93 per cent believe it will be essential to success in the next five years. Only eight per cent do not face barriers to these goals. About 89 per cent find a need to increase spending to keep up with competitors. Significant roadblocks: At least 44 per cent of respondents described the implementation process as challenging, citing security concerns (40 per cent); shortage of in-house expertise (33 per cent); and compliance and regulatory challenges (33 per cent). The lowest-ranking barrier was 'no clear understanding of benefits' (14 per cent). More than 76 per cent cited severe shortage of skilled personnel, and 89 per cent need external guidance. At least 57 per cent plan to engage external third-party expertise in the next three years; 67 per cent believe external advisors are hard to come by; while 38 per cent consider external expertise less expensive than mobilising it in-house. Nearly a third of respondents cannot upskill own workforce. Lack of tools: As much as 91 per cent agrees on the need for a responsible AI framework/policy. However, fewer than 39 per cent considers current approach 'very effective'. More than 91 per cent believes better regulation is required for successful and responsible AI implementation. This should ensure data privacy (62 per cent); better transparency (57 per cent); and ethical usage (55 per cent). Respondents say neither their government (71 per cent) nor industry (64 per cent) is doing enough on AI regulation. SHARE Copy linkEmailFacebookTwitterTelegramLinkedInWhatsAppRedditPublished on August 20, 2024

UST AI Report: 93% of Large Companies view AI as essential to success, but more than three-quarters face a severe Talent Shortage

76% of respondents cite a severe shortage of AI-skilled personnel; companies urgently need help to upskill their workforce and support to facilitate AI adoption.92% of survey respondents agree that AI implementation aligns with their strategic goals. However, only 5% reported no significant challenges in deployment. Fewer than 40% of organizations have confidence in their responsible AI framework, and approximately 70% are concerned that a lack of diversity within their AI workforce leads to biased outcomes. New research commissioned by UST, a leading digital transformation solutions company, finds that most organizations are clearly on board the AI (artificial intelligence) ship but lack a skilled AI workforce and need a compass to help navigate these uncharted waters. Obstacles to effective implementation frequently include a lack of in-house AI skills, increasingly complex regulatory requirements, and rising ethical concerns. These factors create uncertainty, slowing AI implementation and preventing the technology from reaching its full potential. This comprehensive survey on AI in the Enterprise surveyed 600 senior IT decision-makers in large companies ($500m+ revenue) across the US, UK, India, and Spain. The companies surveyed represent a combined revenue of more than $10 trillion. The research uncovered three significant findings: Clear management buy-in: AI enablement continues to be of paramount importance for large businesses, with more than half (54%) using and integrating AI throughout their organizations, nearly a third (28%) using it throughout the business but in an unstructured way, and 16% just starting to experiment with AI. Only 1% do not use AI and they have no plans to do so. Significantly, 92% say their company's AI implementation aligns with their strategic goals, and 93% believe AI will be essential to success in the next five years. However, only a small portion, 8%, said that they do not face barriers to these goals. Despite the broad recognition of AI's importance and strategic value, this highlights a significant challenge: most organizations encounter substantial obstacles that hinder AI implementation. Finally, approximately 9 in 10 (89%) say their organization needs to increase spending on AI implementation to keep up with its competitors. Significant roadblocks remain: 44% described the AI implementation process as challenging, citing security concerns (40%), a shortage of in-house expertise (33%) and compliance and regulatory challenges (33%) as the top issues. The lowest-ranking barrier was "No clear understanding of the benefits" (14%), showing that there is clear consensus on the value of AI. Looking more closely at concerns around the skills shortage, more than three-quarters (76%) say there is a severe shortage of AI-skilled personnel within their organization. Consequently, almost nine in 10 (89%) say their organization needs external guidance on implementing AI effectively, with more than half (57%) planning to engage with external third-party AI expertise in the next three years. Two-thirds (67%) believe there are insufficient external advisors focusing on AI implementation, and more than a third (38%) consider external expertise less expensive than in-house. Furthermore, nearly a third (31%) of respondents cannot upskill their own workforce. Lack of tools to navigate the complexity of ethics, regulation, and diversity concerns: 9 in 10 (91%) agree that their organization must have a responsible AI framework/policy. However, fewer than 4 in 10 (39%) consider their current approach "very effective". Additionally, more than 9 in 10 believe more regulation is required for successful and responsible AI implementation in their industry (91%) and in companies across all industries (92%). The main reasons for this regulation should be to ensure data privacy (62%), better transparency (57%), and ethical usage (55%). Respondents say neither their government (71%) nor industry (64%) is doing enough regarding AI regulation. Regarding their AI workforce, 80% say that diversity is crucial or very important. However, 32% believe their AI team is lacking diversity. In addition, 70% are concerned that this lack of diversity leads to biased outcomes. "AI is a groundbreaking technology already accelerating innovation across industry sectors, improving productivity, and redefining what is possible in unimaginable ways. This research comprehensively shows AI's myriad benefits and challenges for businesses. By shining a light on the dominant hurdles to effective AI integration, we hope to help enterprises identify the right tactics and facilitate greater adoption of AI," said Krishna Sudheendra, Chief Executive Officer, UST. Other key findings include: AI spending and ROI: 1 in 20 (5%) currently spend more than half of their technology budget on AI implementation - but almost 1 in 5 (18%) predict they will spend at this level within three years. On average, organizations expect to see a return on investment in AI technology in approximately two years. However, almost a quarter (23%) expect this to take four or more years. ESG benefits of AI: Almost 9 in 10 (89%) believe AI can help their organization work toward their net zero goals, and a similar proportion say that AI has significant ESG benefits (91%). Respondents believe AI improves sustainability measurements and reporting (68%), reduces carbon emissions/accelerates efforts to reach net zero (58%) and reduces resource consumption (55%). "The absence of mature AI governance frameworks is a glaring problem that enterprises can no longer ignore. 90% of those surveyed agree that robust regulations are needed to guide its development and mitigate risks as AI becomes deeply embedded in society. Soon, AI regulations and privacy-first AI will become essential to modern platforms, with algorithmic transparency, explainability, and risk metrics ensuring that only ethically designed AI systems earn public trust. These findings show that we must accelerate efforts to develop and implement sound AI governance policies to create a future where AI systems fulfill their potential as powerful for the common good," said Adnan Masood, Chief Architect - AI & Machine Learning, UST. To help create that future, UST recently launched a groundbreaking initiative to train more than 25,000 employees - approximately 80% of its workforce - with cutting-edge Generative AI skills and knowledge. The program was announced just months after the unveiling of UST AlphaAI, which consolidates the company's AI offerings to enhance business agility, streamline operations, and accelerate digital transformation journeys. The AI in the Enterprise report, downloaded here, contains country-specific data findings for the USA, the UK, India, and Spain. Survey methodology This research was conducted online by FTI Consulting during March-April 2024. It involved the opinions of n=600 senior IT decision makers in large companies with a minimum of $500 million annual revenue in the USA, UK, India, and Spain (n=150 in each) across a range of industry sectors, which included technology, financial services, manufacturing, retail, and energy. For more information about the methodology, please contact [email protected] About UST For more than 24 years, UST has worked side by side with the world's best companies to make a real impact through transformation. 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