Rapid roll out of GenAI, but no signs of 'tsunami' on jobs

• Predictions that AI will have a major, rapid effect on jobs appears overhyped
• Chief AI Officers are on the up
• Tech leaders with a GenAI policy have doubled in just six months
• Unproven business case holds GenAI back
• Investment in technology remains strong

Predictions that AI will have a major, rapid effect on jobs appears overhyped. Although almost three quarters (71%) of tech leaders (CIOs, CTOs etc) have deployed GenAI to at least some extent to employees, almost all (99%) report that it’s not yet replacing jobs. In contrast, over half (51%) are using GenAI as a personal productivity tool to support existing jobs, to make them more effective.

But as GenAI is being rapidly rolled out more widely, the need to appoint a Chief AI Officer (CAIO) is also rising with one in twenty organisations already with one, and a similar proportion planning to appoint one. It is therefore expected that in time, one in ten organisations will have a CAIO. However, for the majority of organisations, the AI strategy still sits with the tech leader, the CIO or CTO.

These findings are revealed today (18^th June 2024) in the Nash Squared Digital Leadership Report Pulse Survey[1], which forms part of its larger annual survey of technology leadership, which has identified technology trends for over 25 years, and taken in the views of over 50,000 technology leaders.

The Pulse Report Survey also found that to support employees, and ensure safe use of GenAI in their organisations, tech leaders have rapidly rolled out GenAI policies, with the number with a policy in place doubling in just six months. For many this has been a ‘retrofit’ after GenAI has been rolled out or adopted. Despite the rapid roll out of policies, four in ten tech leaders are still concerned about the misuse of GenAI tools.   

Unproven business case holding GenAI back

Tech leaders can feel the potential of AI, but over half (54%) have yet to find a clear business case beyond a personal productivity tool, and almost a third (29%) are struggling with budgetary constraints.

Other key findings from the Nash Squared Pulse Survey include:

• Investment in technology remains strong – In the next 12 months, almost half of tech leaders (43%) expect to increase their tech budget, and one third (36%) plan to increase tech headcount. Of those organisations (67%) being held back by the economy, there is an expectation things will bounce back by the start of 2025.
• Focusing on efficiency – The top priority for tech leaders is to improve the efficiency of operations, typically through automation, AI and better use of data. However, three in ten see the revenue generation potential of technology as their top priority. Boards are therefore looking for technology to improve both top line and bottom line.
• Hybrid working comes of age – In the last six months, one in six organisations (16%) have increased the number of days employees are expected in the office. For those organisations where employees are mandated to be in the office, the typical time expected has moved from 2-3 days to 3 days. And 88% seem happy with the results, four in ten (43%) report it is working ‘extremely well’ (up 17% in six months), and a similar number (45%) reporting it’s working ‘quite well’. But more days in the office does have consequences, especially on diverse hiring.
• Most report sustainability and diversity are not moving forward – Compared to this time last year, the majority of tech leaders (68%) report that progress on sustainability has either stayed the same or declined, and a similar proportion (72%) report the same with diversity initiatives. The Nash Squared report notes that there is still more work to do in both of these areas, as standing still is moving back.