Irish business really needs to embrace artificial intelligence

Artificial Intelligence is less well developed in Ireland compared to the US and requires more investment to leverage opportunities.

According to key findings from the inaugural PwC/Analytics Institute joint study, AI Six Priorities, benchmarking the AI readiness of Irish businesses against their US peers, the gap between the AI vision and execution is the largest stumbling block.

One-in-four have no plans to roll out AI initiatives, and 53% expect no net changes in overall employee headcount, but there will be some changes to composition of roles and skills.

In addition, the study encompassing 100 Irish business leaders, including CEOs, CFOs and AI executives and practitioners, found that over three-quarters of respondents recognise that businesses that fail to apply AI could quickly lose competitive advantage, while 77% are of the view that AI will significantly change the way they will do business in the next five years.

Worryingly, four-out-of-10 confirmed that they have no plans to roll out AI initiatives in the year ahead, while the vast majority of their US counterparts are much more advanced having either fully rolled out AI or are in the process of doing so. Aside from skills challenges, making the business case and getting budget approval are the greatest challenges holding back AI implementation – much greater hurdles compared to US counterparts.

“It is clear that AI is less well developed in Ireland when compared to the US,” said Darren O’Neill, Partner and AI and Data Analytics Leader, PwC Ireland.

Irish businesses have more work to do to fully invest in and embed AI opportunities into their operations. While recognising the potential of AI, Irish business leaders need to have the infrastructure, key talent and, most importantly, the appropriate data to successfully implement AI.

The gap between the AI vision and execution remains the largest stumbling block. Organisational leaders know AI is important, but they are reluctant or unable to take actions necessary to make the transformation happen.

New cyber threats and privacy threats are key perceived risks brought about by AI, according to the survey, but very few Irish respondents scored managing related cyber-security and fraud risk as key priorities, with less than one in five of the view that customer distrust as a result of AI will lead to lost business.

Lorcan Malone, Chief Executive, Analytics Institute, said: “AI and analytics, if successfully deployed, can extract valuable insights for better business decision making and robust data is a key enabler. But in our experience, organisations have some way to go to provide the robust, reliable and complete data that is needed. Monitoring data standards, as well as developing systems and processes that make it easier for employees to create usable, labelled data sets for future use is also important.”

With rising concerns around trust and cyber threats, over three-quarters of survey respondents are calling on the Government to have a public policy for AI. Furthermore, an overwhelming majority (87%) are of the view that it is important that Ireland puts itself at the forefront of the AI revolution, investing in the skills and technology needed to successfully adopt AI into commercial business opportunities.

Mr Malone added: “Responsible AI means explainable AI, so that the algorithms’ decisions are transparent. Boards may be asked about risk management and the reliability of their brand when machines are making the decisions. To make AI more trustworthy, and more acceptable, it needs to be easy to explain. We recommend developing your AI with trust and transparency in mind, and an expectation that it will be regulated in the future.”