UK leaders embrace GenAI but lag in strategy & governance

Recent research has highlighted that senior decision-makers in the UK and Ireland are demonstrating significant enthusiasm for generative AI (GenAI). However, this enthusiasm is being tempered by a lack of strategic planning and understanding, concerns around data privacy and security, and insufficient preparedness to comply with regulations and establish governance frameworks.

The study, conducted earlier this year by Coleman Parkes Research and commissioned by SAS, surveyed 200 key decision-makers in GenAI strategy and data analytics within organisations across the UK and Ireland. Participants were asked about their current plans to deploy GenAI, integration of the technology into their strategic planning, and the challenges faced in implementation.

Key findings from the study reveal that six in ten organisations (62%) have started to integrate GenAI, with 9% having fully integrated the technology at an enterprise level. This demonstrates a marked desire to leverage GenAI's capabilities, especially after the mainstream success seen with the launch of ChatGPT in 2022.

Among the organisations that have adopted GenAI, a significant number report tangible benefits from its use. Notably, 96% of these organisations indicated improvements in employee experience and satisfaction. Meanwhile, 90% reported operational cost savings, and 94% observed higher customer retention rates.

The study also found that organisations yet to implement GenAI are planning to do so, with the vast majority (90%) intending to invest in the technology for the 2024/25 period. Nearly one in five are planning to roll it out at an enterprise level.

Despite the palpable enthusiasm, the SAS study uncovers substantial gaps in understanding and preparedness among senior decision-makers. A staggering 96% acknowledge that they do not fully comprehend GenAI or its potential impact on business processes.

In terms of compliance and governance, fewer than one in ten organisations (8%) have undertaken the necessary preparations to comply with GenAI regulations, and 95% lack a comprehensive governance framework. Concerns about data privacy and security are prevalent, with 75% and 72% of decision-makers respectively citing these as significant issues. Additionally, less than one in twenty organisations (4%) provide a high level of training on GenAI governance and monitoring.

Commenting on the findings, Dr Iain Brown, Head of Data Science at SAS Northern Europe, noted that while it is reassuring that UK and Ireland decision-makers recognise GenAI's potential to drive innovation and operational efficiency, the lack of thorough preparation poses significant risks. These risks include wasted resources, reduced competitiveness, and potential non-compliance with legal standards. Brown emphasised the necessity for businesses to develop a comprehensive GenAI strategy encompassing integration, governance, and explainability.

The SAS study offers several recommendations for successful GenAI deployment, including strategic deployment, comprehensive governance, technological integration, and expert guidance. The report "Generative AI Challenges and Potential Unveiled: How to Achieve a Competitive Advantage" provides further insights and detailed guidance on these aspects.

The findings of the SAS study on GenAI were presented at SAS Innovate on Tour, held at The Kia Oval in London. SAS plans to release a global report on GenAI later this year, which will include additional best practices and strategic insights to empower organisations in effectively harnessing GenAI's full potential, along with comparisons across key markets and industry sectors.