8 in 10 businesses to boost AI investment this year— but secure use remains a challenge

As businesses around the globe ramp up their investments in artificial intelligence (AI), a pressing concern persists: the lack of clear guidelines for securely managing these powerful tools. 

According to recent findings from Capgemini Research Institute (CRI), a staggering 80% of organisations are set to boost their AI expenditures this year. Yet, the absence of robust regulations on AI usage underscores a significant gap in how businesses approach this transformative technology.

The CRI survey, encompassing over 1,100 executives from diverse industries and countries, highlights a dramatic increase in AI investments over the past 12 months. Among the surveyed executives, 60 were from Australia, and an impressive 58 of them indicated they are exploring generative AI capabilities. 

This surge in AI adoption reflects a broader trend, with generative AI becoming a cornerstone for many businesses looking to innovate and drive growth.

The AI investment surge

The report reveals that 80% of organisations have increased their investment in generative AI since 2023. This is a notable shift from previous data, where only 6% of organisations had integrated AI into various functions. The recent survey indicates that this figure has now risen to 24%, signifying a more widespread adoption of AI across different sectors and functions.

Generative AI's role in transforming business operations and models is becoming increasingly apparent. According to Pascal Brier, Chief Innovation Officer at Capgemini, companies are not only focusing on cost optimization but are also exploring new ways to leverage AI for value creation. 

"Generative AI is starting to transform business, and organizations are already seeing concrete growth in revenue while also accelerating innovation," Brier stated. This shift is expected to continue as AI evolves from a supportive tool to an independent agent with enhanced execution capabilities.

The need for governance and guidelines

Despite the positive outlook on AI's potential, the CRI report and additional research from UiPath highlight a significant concern: the lack of comprehensive rules and guidelines for secure AI usage. As businesses increasingly deploy AI technologies, there is a growing need for clear governance frameworks to manage these tools responsibly.

A recent study by UiPath, which surveyed over 1,100 Australian knowledge workers, found that nearly half (44%) are using generative AI in their daily tasks. Alarmingly, 56% of respondents reported that their companies either lack a policy on AI or have not communicated existing policies effectively. This gap in governance is a critical issue, as it leaves many organisations exposed to potential risks associated with AI misuse.

Real-world examples of AI implementation

Some organisations have already taken proactive steps to address these challenges. Paul Joseph, National IT Partner at tax and consulting firm RSM Australia, shared insights into how his organization has successfully integrated generative AI. 

RSM has implemented a governance framework and established clear AI usage guidelines for its staff. This approach has not only enhanced service delivery and operational efficiency but has also ensured responsible and ethical AI use.

"Having a governance framework to guide us on responsible AI usage and communicate our AI decisions to clients and stakeholders is crucial," Joseph said. His organisation also emphasises digital literacy and competency training, focusing on applications with clear value creation paths, such as client service enhancement and operational efficiency.

In contrast, James Alabaster, Head of Intelligent Automation at Contact Energy in New Zealand, underscores the importance of a well-rounded understanding of AI across the organisation. "No matter how complicated AI tools may be, they are just that—tools," Alabaster noted. "Our focus is on uplifting the organisation's understanding of AI, including its safe use and our responsibilities when using it."

The challenge of rapid technological advancements

As AI technology continues to advance, the challenge of keeping up with best practices and governance becomes more complex. The rapid pace of AI development means that organisations must not only invest in the latest tools but also establish robust frameworks to manage them effectively.

The generational shift in workforce expectations adds another layer of complexity. New graduates entering the workforce, having grown up with AI technologies, come with elevated expectations around AI's role in their professional lives. Organizations must therefore address the digital competency and literacy of their existing workforce while preparing for the influx of digitally savvy new hires.

Moving forward with AI

The path forward for businesses lies in balancing the innovative potential of AI with a strong commitment to governance and ethical use. As AI technologies become more complex and autonomous, establishing clear guidelines and maintaining transparency will be essential to harness their benefits while mitigating risks.

"Trust, transparency, and accountability will continue to play a central role as businesses embrace this next frontier of AI," Brier emphasised. For organisations to thrive in the evolving AI landscape, they must invest in not only the technology itself but also the frameworks and training needed to use it responsibly