Businesses aware of AI risks but lack proper controls says study

The majority of businesses understand the potential risks associated with artificial intelligence (AI). However, only a small portion have established comprehensive controls for its use, as revealed by new findings from Sapio Research.

The report, titled Finance Pulse 2024, surveyed 800 consumers and 375 business decision-makers responsible for finance departments across the UK, Germany, France, and the Netherlands. According to the survey, 93% of organisations are aware of the potential risks posed by AI. The primary concerns highlighted include data security (43%), lack of accountability and transparency (29%), and skills gaps for safe and effective use (29%).

Despite the high awareness of these potential pitfalls, only 46% of the businesses surveyed currently have formal guidance in place for the acceptable use of AI by employees in the workplace. Additionally, less than half (48%) have established restrictions on the type of data that can be entered into AI models and tools at work. Moreover, only 38% have implemented strict access limitations for employees.

Andrew White, CEO and Co-Founder of Sapio Research, commented on the findings: "AI remains a top investment priority for businesses across Europe. However, its arrival and integration into the workplace has been fast, leaving some employers 'in the dark' about how their staff are using it, and many struggling to put the correct measures in place to govern it."

The survey also indicated that a significant majority of businesses plan to incorporate AI within the next two years, with 75% expressing such intentions. The utilisation of generative AI is particularly prominent in finance roles (63%), where it is employed for tasks such as fraud detection, risk management, and investment strategies. Other areas such as human resources (28%) and sales (19%) were found to be among the lowest users of AI currently.

White further advised caution for businesses looking to adopt AI: "Although the possibilities of AI are seemingly endless, businesses looking to adopt it need to proceed with caution. Our research highlighted that, despite high levels of AI adoption amongst European businesses, most also reported being 'relatively early' in their digital transformation journey."

He also emphasised the risks associated with the rapid integration of AI, stating: "Businesses adopting AI faster than their overall digital transformation run the risk of it fast-tracking through the backdoor and being used by employees without any formal training or guidance. This can lead to serious challenges for employers down the line when it comes to employee performance, data privacy, customer satisfaction, and more."

The findings underscore the need for employers to establish clear and comprehensive guidelines for the use of AI in the workplace, focusing on data security, accountability, and employee training to mitigate potential risks effectively.