Director Weekly Why directors remain dubious about AI
New IoD research shows that although business leaders are enthusiastic about AI’s impact on productivity gains, they harbour reservations about expertise in the boardroom, reliability, and security risks.
Recent research by the IoD gives us insights into directors’ views on AI, its potential, and its associated risks. The findings are striking.
Our survey shows that 62.5% of directors use AI personally in their work. Almost half (49.4%) indicate that their primary organisation uses AI in its operations – and of those, 77.9% say that the most significant benefits include increased productivity and efficiencies. The other most common benefits include better data and insights (identified by 55.9%) and enhanced workforce capabilities (47.5%).
Yet it’s also clear that directors face a complex set of barriers to top-down implementation and governance. Anecdotally, we’ve heard from directors who are very sceptical about the current discourse around AI and the hyperbolic way it’s regularly presented – and that was borne out in the research.
When we asked IoD members what they see as the biggest barriers or concerns regarding AI adoption in their organisation, two concerns stood out. First was a lack of AI expertise or understanding at management and board level – identified as a concern by about half of respondents (50.7%).
This was closely followed by a lack of trust in AI outcomes – relating to the technology’s reliability or the ‘explainability’ of AI systems (49.9%). Cyber security was another significant concern (40.3%).
The data is hugely valuable, because understanding – and addressing – the barriers identified by directors is critical for the government as it pursues its ambition to “shape the AI revolution,” as the Secretary of State for Science, Innovation and Technology, Peter Kyle MP, has put it.
In truth, policy conversations have too often reflected the hype around AI’s potential and been rather weaker on concrete detail about how to increase business adoption. We want to help change that – and we’re already using the new survey data in conversations with government, whether it’s around the AI Opportunities Action Plan or the much-anticipated industrial strategy.
Indeed, we discussed the barriers to more widespread AI adoption at a House of Commons breakfast just this week, which brought together Parliamentarians, tech companies, investors, academics and business groups. Such discussions will be key for helping policymakers grapple with challenges that need much more critical investigation than they’ve received to date – such as understanding why small businesses are lagging behind larger firms on AI adoption and where the real value may lie for those firms.
There’s no doubting the revolutionary potential of AI. It will undoubtedly have a huge impact on business over the coming years. But there’s much to be done to ensure the UK fully capitalises on the opportunities ahead.
- Find out more about the IoD’s recent survey on AI here.
- And for more technology analysis, dive into Erin’s blog on Science, Innovation and Technology trends, The SITuation.
About the author
Dr. Roger Barker is Director of Policy and Governance at the Institute of Directors, and a member of the Management Board. Dr. Barker is the author of numerous books and articles on corporate governance and board effectiveness, including the recent volume: ‘The Law and Governance of Decentralised Business Models: Between Hierarchies and Markets’ (Routledge, 2020). He is a former member of the European Economic and Social Committee and the founder of a successful corporate governance advisory company. A former investment banker, Dr. Barker spent almost 15 years in a variety of equity research and senior management roles at UBS and Bank Vontobel, both in the UK and Switzerland. He has a doctorate from Oxford University and taught politics at Merton College, Oxford (2005-2008).
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