Board level expertise blocking speed of AI adoption

New research from the Institute of Directors reveals business leaders enthusiasm for productivity gains from AI has been tempered by board-level expertise gaps, reliability concerns and security risks.

Nearly half (49%) of UK business leaders whose organisations use AI across any of their functions and processes, with 78% citing increased productivity and operational and administrative efficiencies as the most significant benefits within their organisations, followed by better data insights and analytics (56%), and enhanced or augmented workforce capabilities (47%).

However, persistent barriers are limiting adoption and scaling amongst business leaders. Half of respondents cite limited expertise or understanding of models and tools at management and board level (51%), as well as lack of trust in AI outcomes (50%), as among their biggest concerns. Security risks, such as cyber, data protection and privacy (40%), as well as employee skills and training gaps (40%) and safety and ethical risks (32%), are also significant barriers for business leaders.

Dr Erin Young, Head of Innovation and Technology Policy at the Institute of Directors, said “While UK business leaders in early AI adoption are enthusiastic about greater productivity and efficiencies, they face a complex set of barriers to top-down implementation and governance – from skills and expertise gaps at board level, to a lack of trust and fundamental concerns about reliability, security and business value across AI capabilities, tools and applications.”

“Given a focus on addressing private sector user-adoption barriers in the UK Government’s AI Opportunities Action Plan, it is important that these concerns are addressed strategically for businesses of all sizes across sectors in the Industrial Strategy.”