Generative AI is becoming a hot topic in boardrooms around the globe, with leaders increasingly keen to understand its potential and how to integrate it into their business strategies.

According to a recent KPMG survey, 70% of global CEOs are investing heavily in generative AI, viewing it as their competitive edge for the future. Most CEOs (52%) expect to see a return on their investment in three to five years, indicating a long-term commitment to this technology.

Increased profitability was cited as the number one benefit of implementing generative AI within an organisation, with 22% of respondents highlighting this advantage. However, the journey towards AI integration is not without its challenges.

The recent KPMG global tech report revealed that 55% of organisations have delayed progress towards automation due to concerns about how AI systems make decisions. Ethical challenges top the list of concerns for 57% of CEOs when it comes to implementing generative AI, followed closely by a lack of regulation.

A significant 82% of CEOs believe AI technologies have heightened cyber security risks. More than a quarter (27%) of CEOs admit they are not prepared for a possible cyber attack, an increase from 24% last year. Meanwhile, more than half (53%) say they are prepared, suggesting a divide in readiness across industries.

This insight comes from Lisa Heneghan, Global Chief Digital Officer at KPMG International, who has been closely observing the rise of AI in various sectors.

Lisa Heneghan, Global Chief Digital Officer at KPMG International said to navigate these challenges, CEOs need to lead from the front, ensuring their organisations adopt responsible, robust AI frameworks and focus on safeguarding and governance. As generative AI continues to evolve, it will be interesting to see how businesses adapt and capitalise on this technology.