UST AI report: 93% of large companies view AI as essential to success, but more than three-quarters face a severe talent shortage

New research finds that most organisations are clearly on board the AI (artificial intelligence) ship but lack a skilled AI workforce and need a compass to help navigate these uncharted waters. Obstacles to effective implementation frequently include a lack of in-house AI skills, increasingly complex regulatory requirements, and rising ethical concerns. These factors create uncertainty, slowing AI implementation and preventing the technology from reaching its full potential. This comprehensive survey on AI in the Enterprise surveyed 600 senior IT decision-makers in large companies ($500m+ revenue) across the US, UK, India, and Spain. The companies surveyed represent a combined revenue of more than $10 trillion.

The research uncovered three significant findings:

1. Clear management buy-in: AI enablement continues to be of paramount importance for large businesses, with more than half (54%) using and integrating AI throughout their organisations, nearly a third (28%) using it throughout the business but in an unstructured way, and 16% just starting to experiment with AI. Only 1% do not use AI and they have no plans to do so. Significantly, 92% say their company’s AI implementation aligns with their strategic goals, and 93% believe AI will be essential to success in the next five years. However, only a small portion, 8%, said that they do not face barriers to these goals.  Despite the broad recognition of AI’s importance and strategic value, this highlights a significant challenge: most organisations encounter substantial obstacles that hinder AI implementation. Finally, approximately 9 in 10 (89%) say their organisation needs to increase spending on AI implementation to keep up with its competitors.

2. Significant roadblocks remain: 44% described the AI implementation process as challenging, citing security concerns (40%), a shortage of in-house expertise (33%) and compliance and regulatory challenges (33%) as the top issues. The lowest-ranking barrier was “No clear understanding of the benefits” (14%), showing that there is clear consensus on the value of AI.

Looking more closely at concerns around the skills shortage, more than three-quarters (76%) say there is a severe shortage of AI-skilled personnel within their organisation. Consequently, almost nine in 10 (89%) say their organisation needs external guidance on implementing AI effectively, with more than half (57%) planning to engage with external third-party AI expertise in the next three years.

Two-thirds (67%) believe there are insufficient external advisors focusing on AI implementation, and more than a third (38%) consider external expertise less expensive than in-house. Furthermore, nearly a third (31%) of respondents cannot upskill their own workforce.

3. Lack of tools to navigate the complexity of ethics, regulation, and diversity concerns: 9 in 10 (91%) agree that their organisation must have a responsible AI framework/policy. However, fewer than 4 in 10 (39%) consider their current approach “very effective”. Additionally, more than 9 in 10 believe more regulation is required for successful and responsible AI implementation in their industry (91%) and in companies across all industries (92%). The main reasons for this regulation should be to ensure data privacy (62%), better transparency (57%), and ethical usage (55%). Respondents say neither their government (71%) nor industry (64%) is doing enough regarding AI regulation.

Regarding their AI workforce, 80% say that diversity is crucial or very important. However, 32% believe their AI team is lacking diversity. In addition, 70% are concerned that this lack of diversity leads to biased outcomes.

“AI is a groundbreaking technology already accelerating innovation across industry sectors, improving productivity, and redefining what is possible in unimaginable ways. This research comprehensively shows AI’s myriad benefits and challenges for businesses. By shining a light on the dominant hurdles to effective AI integration, we hope to help enterprises identify the right tactics and facilitate greater adoption of AI,” said Krishna Sudheendra, Chief Executive Officer, UST.

Other key findings include:

AI spending and ROI: 1 in 20 (5%) currently spend more than half of their technology budget on AI implementation – but almost 1 in 5 (18%) predict they will spend at this level within three years. On average, organisations expect to see a return on investment in AI technology in approximately two years. However, almost a quarter (23%) expect this to take four or more years.

ESG benefits of AI: Almost 9 in 10 (89%) believe AI can help their organisation work toward their net zero goals, and a similar proportion say that AI has significant ESG benefits (91%). Respondents believe AI improves sustainability measurements and reporting (68%), reduces carbon emissions/accelerates efforts to reach net zero (58%) and reduces resource consumption (55%).