It seems that businesses in the UK and Europe don’t trust AI tools as much as tech companies would want them to. Roughly 30 per cent of businesses in Europe have already invested in, or are planning to invest in AI, in the next two years, according to a new study
The surge in popularity of generative AI tools has sparked speculations about a major upheaval in the workplace. If panic mongers are to be believed, barring a few of us, the entire world’s population will be out of a job in the next few years. Experts, however, believe that AI will lead to massive shifts in the workplace, and we all need to adapt to it – it won’t take away our jobs, but rather help it evolve.
Recent studies, however, indicate that the anticipated AI revolution in the workplace is yet to materialize.
AI adoption is growing, but not at a worrying pace
Throughout 2023, there has been intense excitement surrounding artificial intelligence (AI) and its potential to transform various industries. Despite AI being gradually embraced by companies across different sectors in the past few months, a new survey suggests that the predicted AI revolution has not yet commenced in workplaces.
Related Articles
The research revealed that only about a third of businesses in the UK, and even less businesses in Europe have invested in AI and machine learning technologies thus far.
Professor Mark Stuart, the lead researcher for the study and Pro Dean for Research and Innovation at Leeds University Business School remarked that a mixture of optimism, speculation, and hype is driving an exaggerated narrative about the rapid transformation of the European workforce through the adoption of new AI-enabled digital technologies. These expectations often come with concerns about job implications and potential risks.
However, the findings indicate that the focus should shift to a different policy challenge. The workplace AI revolution is not currently underway. To fully realize the potential benefits of digital transformation, policymakers need to address the issues of low employer investment in digital technologies and inadequate investment in digital skills within UK’s and Europe’s economy.
No plans to adopt AI on a large scale, anytime soon
According to a survey conducted by the Digital Futures at Work Research Centre, only 36 per cent of UK employers have invested in AI and machine learning. The survey, led by researchers from the Universities of Leeds, Sussex, and Cambridge, highlights a growing skills issue in the country.
Interestingly, of those employers who have not yet invested in AI, only 10 per cent plan to do so in the next two years. The study’s authors note that less than 10 per cent of the surveyed employers believe they will need to invest in digital skills training in the coming years, despite approximately three-quarters of them facing recruitment challenges.
Furthermore, nearly 60 per cent of the employers reported that none of their employees had received formal digital skills training in the past year. This points to a concerning gap between organizations that have embraced new AI-enabled technologies and those that have not, according to the researchers.
For many, AI in business is risky business
The reasons cited by employers who have invested in AI-enabled technology, such as industrial robots, chatbots, smart assistants, and cloud computing, include improving efficiency, productivity, and the quality of products and services.
On the other hand, those who have not invested in such technologies cited reasons such as irrelevance to their business activities, perceived risks, and the specific skills required by their workforce.
The size of an organization and industry were found to be significant factors in determining AI adoption. Larger firms with over 100 employees were more likely to be classified as “digital adopters” compared to smaller firms with fewer than 50 employees.
Not all businesses need AI, yet
Additionally, industries such as public administration and information and communication had higher rates of digital technology investment (around two-thirds), while industries like accommodation and food service (22 per cent) and education (30 per cent) had lower rates of investment.
A recent paper published in the International Journal of Technological Innovation, Entrepreneurship, and Technology Management revealed that higher levels of AI adoption were associated with increased revenue growth for companies. However, the study also found that at lower levels of adoption, there were no performance benefits. The authors of the paper noted that the positive relationship between higher levels of AI adoption and revenue growth was significant for firms that invested in complementary technologies such as database systems and cloud computing.
Read all the Latest News, Trending News, Cricket News, Bollywood News,
India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.
