AI revolution spurs transformation in the European boardroom

Share this post:

Ana Paula Assis, Chair and General Manager IBM EMEA, introduces a new IBM study on the changing role of leadership as 82% of the region’s leaders are set to deploy generative AI

While consumers have been captivated by generative AI’s potential to create and have fun, progressive business leaders were quick to spot an opportunity to revolutionize processes, ramp-up competitivity and grow. The scale and scope of this transformation is impacting every aspect of companies’ operations – from the shopfloor to the boardroom. And its rapid rise is placing great responsibility in the hands of those at the forefront. To understand how Europe’s senior executives are responding to this challenge, IBM has produced a new report: Leadership in the age of AI.

The report, based on responses from over 1,600 senior European executives, examines how the AI revolution is transforming the role of company leaders as they seek to maximize the opportunities, while navigating security threats in an evolving regulatory and ethical landscape.

A new force powering growth in Europe

Europe is home to seven of the world’s 10 most innovative countries – a position that AI can help cement. It’s therefore no surprise to see generative AI deployment at the top of CEOs’ priorities for 2024. The data is unequivocal; 82% of the business leaders we surveyed have already deployed generative AI or intend to in the next year.

The pressure to adopt generative AI appears to be coming from all directions, with anticipation greatest among employees, board members and investors. This growing sense of urgency is being driven by a desire to improve efficiency by automating routine processes and freeing up employees to take on higher value work (45%), enhance the customer experience (43%) and improve sales (38%).

In the boardroom, meanwhile, there’s near unanimity; 95% of respondents agreed that generative AI has the power to help them make better decisions.

Overcoming the hurdles

This enthusiasm is, however, being tempered by concerns around security, the evolving regulatory and ethics landscape, and skills. Our report indicates that AI deployment is transforming the concept of leadership – away from a focus on the bottom line towards a proactive role in managing the societal costs and benefits. Indeed, 96% of respondents who have implemented generative AI, or are planning on rolling it out, said they are already engaged in shaping new ethical and governance frameworks.

Moreover, while regulators across Europe work to rapidly develop AI policy frameworks, business leaders are taking ownership on key security issues, citing issues around data privacy and surveillance as the most fundamental challenge to responsible AI.

Meanwhile, the skills shortage is being addressed by a concerted effort to improve AI skills across the workforce; 95% of surveyed executives said they were taking steps to ensure they have the right AI skills in their organizations. On a personal level, respondents were looking to enhance their own knowledge of generative AI technology (44%), the regulatory and compliance landscape (41%) and ethical implications (41%).

For all this positivity there are still hurdles to overcome. Only 54% of senior executives said they were clear about how regulations could impact their company’s use of generative AI, indicating a need for ongoing collaboration between businesses, industry associations and policymakers.

Keeping pace with change

The key to making the best use of AI-based tools is to build trust around their operations. To do this, AI systems must be transparent and explainable, they need to augment not replace staff, and data use must be underwritten by good governance. Getting this right will ensure companies are ready to reap the benefits of the AI revolution in a mindful, accountable way.

Despite the complexities, it’s a hugely significant opportunity; generative AI is predicted to annually add between $2.7 trillion and $4.4 trillion to the global economy (McKinsey).  Leadership in the age of AI contains clear recommendations to help Europe’s CEOs and senior business leaders successfully navigate their way through this dynamic new landscape, instilling good governance into every action taken to secure their share of the AI bounty.

View the Leadership in the age of AI report here