A new research released by UST, a digital transformation solutions company, shows that 93% of large companies consider AI essential to their success, yet more than three-quarters are struggling with a severe shortage of AI-skilled personnel.
Additionally, the report titled “2024 AI in the Enterprise” highlights that 70% of organisations are concerned that a lack of diversity within their AI workforce may lead to biased outcomes.
The report is based on a survey of 600 senior IT decision-makers from large companies across the USA, UK, India, and Spain. The companies surveyed represent a combined revenue exceeding $10 trillion.
Krishna Sudheendra, chief executive officer of UST said, “AI is a groundbreaking technology already accelerating innovation across industry sectors, improving productivity, and redefining what is possible in unimaginable ways”.
While 92% of companies report that their AI implementation aligns with their strategic goals, only 5% stated they face no significant challenges in deployment. This highlights the complexity of integrating AI into business processes, where talent shortages, regulatory hurdles, and ethical considerations often impede progress.
The survey results show that 76% of respondents cite a severe shortage of AI-skilled personnel, underscoring the urgent need for workforce upskilling and external support to facilitate AI adoption.
The report identifies several key obstacles to effective AI implementation. Security concerns top the list at 47%, followed closely by regulatory compliance issues (44%) and a lack of external expertise (32%).
Interestingly, fewer than 40% of organisations expressed confidence in their responsible AI frameworks, and around 70% are worried that a lack of diversity in their AI workforce could result in biased outcomes.
Regional Insights
India stands out among the surveyed markets, with 24% of companies allocating the highest proportion of revenue to digital technology and tools.
The report reveals that the primary drivers for AI adoption in India include productivity and enhanced customer experience, each cited by 60% of respondents. However, security concerns (47%) and regulatory compliance (44%) are significant barriers to AI implementation in the country.
In contrast, companies in the USA, UK, and Spain report varying levels of AI adoption, with challenges ranging from talent shortages to ethical concerns. Despite these challenges, 89% of respondents believe that increasing AI spending is crucial to staying competitive.
AI Spending and ROI Expectations
The report also provides insights into AI spending and return on investment (ROI). Currently, 5% of companies spend more than half of their technology budgets on AI, with 18% predicting they will reach this level within the next three years.
On average, organisations expect to see a return on their AI investments within two years, although nearly a quarter (23%) anticipate that it will take four or more years.
Moreover, the survey reveals that AI is increasingly seen as a tool for achieving ESG (Environmental, Social, and Governance) goals. Almost 9 in 10 respondents believe that AI can help their organizations work towards net zero targets, with 91% acknowledging AI’s significant ESG benefits.
Ethical and Regulatory Challenges
The report also highlights significant concerns surrounding the ethical and regulatory aspects of AI. A majority (91%) of respondents agree that robust regulations are essential for responsible AI implementation, with data privacy, transparency, and ethical usage identified as the main drivers for regulation.
Despite the consensus on the need for regulation, 71% believe that their governments are not doing enough in this area, and 64% feel that industry efforts are also lacking.
Regarding diversity, 80% of respondents consider it crucial for their AI workforce, yet 32% acknowledge a lack of diversity within their teams, raising concerns about potential biases in AI outcomes.
Adnan Masood, chief architect of AI & Machine Learning at UST, said: “The absence of mature AI governance frameworks is a glaring problem that enterprises can no longer ignore. Soon, AI regulations and privacy-first AI will become essential to modern platforms.”
In response to these challenges, UST has launched an initiative to train over 25,000 employees—approximately 80% of its workforce—in Generative AI skills.
