The AI Paradox: Organisations That Think They Have AI Under Control Aren’t Prepared for the Onslaught of Generative AI

The proliferation of generative AI poses a significant challenge to
organisations, even the ones that think they have a handle on AI already.
Sami Mäkeläinen explains.

For more than a decade, artificial intelligence has been influencing our lives with uses such as image identification, facial recognition and simple assistants.

But AI was thrust firmly into the spotlight in 2022 when ChatGPT made its debut.

Unlike conventional pattern recognition AI, which focuses more on predictable outcomes, ChatGPT and its ilk call on generative AI. 

Navigating the Nuances: Understanding the Challenges of Generative AI Adoption

Generative AI is, by design, unpredictable. The underlying models are so complex nobody, really understands exactly how they produce results. And it does so in a non-deterministic way which means it can produce different outputs even if the input remains unchanged.

This fundamental difference in how the models work also requires a different mindset to master. 

If you’re a board member or on the executive team of an organisation that has a chief AI or data officer and somebody comes to you with a generative AI tool or a solution, your instinctive reaction would be to hand it to them to deal with. Given the difference in the way generative AI operates, that’s one of the worst things you can do. 

The reason for this is that the default competency of these people will be different to what’s required for generative AI. Additionally, the existing AI incentives and the governance structures of your organisation will be misaligned with this new approach.

Because of this, businesses that believe they have mastered AI may actually find themselves ill-prepared to embrace the potential of generative AI. 

This paradox underscores the critical need for a nuanced understanding of AI’s evolving landscape and the distinct challenges posed by emerging technologies.

Cultivating a Culture of Responsible AI Experimentation: Strategies for Business Leaders

Despite AI dominating the headlines, in my experience, less than 1% of senior leaders have engaged in sufficient hands-on experimentation and learning, indicating a significant knowledge gap within the business community. 

This gap is exacerbated by the extreme views in the media’s representations of AI which oscillate between unwarranted optimism and dystopian fears.

This fear is leading to rigid policies that restrict AI usage such as a total ban on generative AI in some organisations. Policies like that often drive GenAI experimentation and use underground, leading to secretive or unauthorised use of AI tools – a phenomenon known as “secret cyborgs.” Just because you have told your people they can’t use AI doesn’t mean they aren’t going to.

This clandestine approach not only undermines organisational trust but also stifles innovation and hampers the responsible adoption of AI technologies.

It’s important to foster a culture of experimentation and provide avenues for open exploration of AI technologies. 

Rather than imposing restrictive policies, embrace a more flexible approach that encourages responsible experimentation while mitigating potential risks. This requires a delicate balance between providing education and training and recognising the limitations of retraining existing personnel familiar with traditional AI.

By fostering a culture of experimentation, embracing flexibility in governance, and addressing ethical considerations, businesses can position themselves to harness the transformative power of AI.

The 2024 Annual Asia-Pacific CFO & CPO Forum

I look forward to sharing my views on the AI paradox and more at the 2024 Annual Asia-Pacific CFO & CPO Forum, which will bring Finance and Procurement leaders together for the first time to share insights and strategies to tackle the most complex business challenges. 

As well as AI, the Forum will deep dive into the energy transition, governance risk, combatting inflation and more. Hear from renowned speakers Investa Property Group Chair Rebecca McGrath, Rio Tinto Chief Executive Kellie Parker and Akora Resources Chairman Graeme Hunt – as well as Olympic cycling legend and Paris 2024 Chef de Mission Anna Meares.

Register here: https://www.procurious.com/events/annual-asia-
pacific-cfo-cpo-forum.

This article was written by Sami Mäkeläinen, Senior Research Affiliate, The Institute for the Future.