Ethics, Bias and Regulatory concerns slowing European
adoption
LONDON, Dec. 5, 2023 /PRNewswire/ -- Europe is doubling down on generative AI
(GenAI) investment but is on a more cautious path than North America, according to new research from
the Infosys Knowledge Institute (IKI), the research arm
of Infosys (NSE: INFY), (BSE: INFY), (NYSE: INFY). The research
forecasts that European companies will increase GenAI
investments by 115% in the next year, to $2.8 billion.
The pace of investment is slower than in North America where spend is expected to reach
close to $6 billion. This more
cautious spend is largely due to concerns around ethics and bias
driven by the more regulated European market. However, European
companies remain optimistic about generative AI's impact on their
business and are much more confident in their ability to train and
recruit talent, as well as manage and control generative AI
systems.
For the Generative AI Radar 2023 – Europe report, IKI surveyed 1,000
respondents from companies across 11 Western European countries
(Belgium, Denmark, Finland, France, Germany, Iceland, Luxemburg, Netherlands, Norway, Sweden and United
Kingdom). The research, which is also supported by
interviews with business leaders and AI practitioners, highlights
the following insights.
- France and Germany lead spending and adoption
-
- France and Germany are expected to double spending on
GenAI, to nearly $730 million in
France and almost $610 million in Germany, in the next 12 months.
- In both countries, about 50% of companies have either
implemented GenAI or have implemented and have created business
value from it – compared with roughly 40% in UK, Benelux, and
Nordics.
- UK is expected to move past Benelux into third place in the
next 12 months, more than doubling spend to nearly $510 million.
- Nordic companies are expected to increase spending at the
highest rate in the next 12 months – more than 2.5x their current
spending, to more than $470
million.
- European companies are deploying GenAI, but few have created
business value
-
- Despite high levels of experimentation and implementation with
GenAI, only 6% of European companies generate business value with
their GenAI use cases. France,
Germany and the UK lead the
region, with about 10% of companies reporting value delivered by
their GenAI projects.
- European companies are more focused on ethics and bias, and
more confident about managing and controlling GenAI than North
American companies
-
- European companies identified ethics and bias as the second
biggest challenge, after data privacy and security. North American
companies are less concerned with ethics and bias – where it was
the fourth biggest challenge behind issues such as data privacy,
unusable data and lack of skills.
- European companies also have more boards of directors involved
in GenAI policies, reflecting their concerns around regulations. In
Europe, boards of directors set
regulations and policies at more than 30% of companies and are
primary sponsors nearly 20% of the time.
- More than 70% of European respondents are confident in GenAI
management abilities.
Balakrishna D. R.
(Bali), Executive Vice President,
Global Head of AI and Industry Verticals, Infosys, said
"Generative AI is driving phenomenal transformation across
industries, and investment is happening at a rapid pace. Against
the backdrop of an ever-evolving regulatory landscape,
organizations must embed responsible AI techniques to not only
improve data quality and management, but effectively manage ethics
and bias risks. Our research has shown that for European businesses
to derive business value, they must develop and evolve an AI-first
operating model that prioritizes business transformation and skills
development, and enables them to maximize human potential."
To read the full report, please visit here.
Methodology
Infosys used an anonymous format to conduct an online survey of
more than 1,000 business executives across industries across
Belgium, Denmark, Finland France, Germany, Iceland, Luxemburg, Netherlands, Norway, Sweden and United
Kingdom. To gain additional, qualitative insights, the
researchers interviewed subject matter experts and business
leaders.
About Infosys
Infosys is a global leader in next-generation digital services
and consulting. Over 300,000 of our people work to amplify human
potential and create the next opportunity for people, businesses
and communities. We enable clients in more than 56 countries to
navigate their digital transformation. With over four decades of
experience in managing the systems and workings of global
enterprises, we expertly steer clients, as they navigate their
digital transformation powered by cloud and AI. We enable them with
an AI-first core, empower the business with agile digital at scale
and drive continuous improvement with always-on learning through
the transfer of digital skills, expertise, and ideas from our
innovation ecosystem. We are deeply committed to being a
well-governed, environmentally sustainable organization where
diverse talent thrives in an inclusive workplace.
Visit www.infosys.com to see how Infosys (NSE: INFY), (BSE:
INFY), (NYSE: INFY) can help your enterprise navigate your
next.
Safe Harbor
Certain statements in this release concerning our future growth
prospects, or our future financial or operating performance are
forward-looking statements intended to qualify for the 'safe
harbor' under the Private Securities Litigation Reform Act of 1995,
which involve a number of risks and uncertainties that could cause
actual results or outcomes to differ materially from those in such
forward-looking statements. The risks and uncertainties relating to
these statements include, but are not limited to, risks and
uncertainties regarding the execution of our business strategy, our
ability to attract and retain personnel, our transition to hybrid
work model, economic uncertainties, technological innovations such
as Generative AI, the complex and evolving regulatory landscape
including immigration regulation changes, our ESG vision, our
capital allocation policy and expectations concerning our market
position, future operations, margins, profitability, liquidity,
capital resources, and our corporate actions including
acquisitions. Important factors that may cause actual results or
outcomes to differ from those implied by the forward-looking
statements are discussed in more detail in our US Securities and
Exchange Commission filings including our Annual Report on Form
20-F for the fiscal year ended March
31, 2023. These filings are available at www.sec.gov.
Infosys may, from time to time, make additional written and oral
forward-looking statements, including statements contained in the
Company's filings with the Securities and Exchange Commission and
our reports to shareholders. The Company does not undertake to
update any forward-looking statements that may be made from time to
time by or on behalf of the Company unless it is required by
law.
For more information, please contact:
Dena Tahmasebi, Director of
Communications EMEA, Infosys | Dena.tahmasebi@infosys.com
Logo:
https://mma.prnewswire.com/media/633365/Infosys_Logo.jpg
View original
content:https://www.prnewswire.co.uk/news-releases/european-firms-struggle-to-generate-value-from-generative-ai-yet-will-double-spending-in-2024-infosys-research-302004976.html