DIGITAL & TRENDS

Artificial intelligence (AI)

adoption, risks, and challenges
 Table of Contents

01 Overview: AI market 04 Segment: Challenges

Artificial Intelligence (AI) market size/revenue comparisons 2018-2030 03 Three leading challenges to starting AI projects worldwide 2022 22
AI tool user numbers worldwide from 2020-2030 04 Technological challenges slowing down enterprise transformation 2024 23
Most popular AI use cases within enterprises globally 2023 05 Main challenges in implementing AI initiatives in businesses 2023 24
AI infrastructure challenges globally 2023 25
02 Segment: Adoption AI readiness in companies 2023, by domain 26

Governance policies and strategies for AI within businesses worldwide 2023 07 Need for further data privacy reassurance strategies in companies' AI use 2023 27

Areas of business that will require the most AI skills over the next year as of 2023 08 Leaders in charge of AI strategies in the U.S. and Europe 2023, by industry 28

Expected benefits from Generative AI in organizations worldwide 2024 09 Challenges to internal business transformation in the U.S, 2023 29

Preparedness of global companies' risk & governance for generative AI adoption 2024 10
Areas of business operations that concentrate AI use cases in companies 2023 11
Worldwide posture towards the use of generative AI 2023 12

03 Segment: Risks
Impact of generative AI on economic inequality worldwide 2024 14
Impact of generative AI on the distribution of economic power worldwide 2024 15
Organizations' implemented control of the use of generative AI 2023 16
Organizations' concerns from the use of generative AI 2023 17
Concerns over the use of generative AI worldwide 2023 18
Risk management initiatives towards generative AI implementation worldwide 2024 19
Risks posed to company survival in the U.S. 2023 20

1
CHAPTER 01

Overview: AI market
 Market size and revenue comparison for artificial intelligence worldwide
from 2018 to 2030 (in billion U.S. dollars)
Artificial Intelligence (AI) market size/revenue comparisons 2018-2030

IDC (February 2021) Tractica (March 2020) Next Move Strategic Consulting (January 2023) Statista (October 2023)
2,000
1,847.4
1,800

1,600
Market size in billion U.S. dollars

1,415
1,400

1,200 1,068.7

1,000
795.3
738.7
800 659.5
554.3 582.9 584.8
600 511.3
420.4 445.9
370.2
400 327.5 305.9
298.1
281.4 241.8
227.6 207.9
108.4 142.3
134.8 126
200 95.4 70.94 94.41
10.1 14.69 22.59 34.87 51.27
0
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

3 Description: The market for artificial intelligence (AI) is expected to show significant growth in the coming decade, according to a variety of sources. According to Statista data, the AI market size is projected to rise from 241.8 billion U.S. dollars in 2023 to almost 740
billion U.S. dollars in 2030, accounting for a compound annual growth rate of 17.3%. Meanwhile, according to Next Move Strategy Consulting, its value of approximately 208 billion U.S. dollars in 2023 is expected to grow ninefold by 2030, [...] Read more
Note(s): Worldwide; 2018-2023
Source(s): IDC; Next Move Strategy Consulting; Statista; Tractica
 Number of artificial intelligence (AI) tool users globally from 2020 to 2030
(in millions)
AI tool user numbers worldwide from 2020-2030

800
729.11

700 673.83

605.94
600
529.77

500
Users in millions

451.82

400 378.8

314.38
300 254.78
201.38
200 154.26
115.91
100

0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

4 Description: People using AI tools globally went past 250 million in 2023, more than doubling from the 2020 number. This growth in AI tool users is expected to continue, pushing past 700 million by the end of the decade. Read more
Note(s): Worldwide; August 2023
Source(s): Statista
 Most popular AI use cases within enterprises worldwide in 2023
Most popular AI use cases within enterprises globally 2023

Share of respondents
0% 10% 20% 30% 40% 50% 60%

Computer vision 51%

Customer engagement (CRM, chatbots, call centers, customer affinity) 47%

Predictive maintenance 43%

Natural language processing (NLP) 38%

Recommender systems 34%

Intelligent search 31%

Document processing 28%

Sales and marketing analytics 26%

Facial recognition 23%

Image recognition 18%

Speech recognition 13%

5 Description: The most popular AI use case among enterprises worldwide in 2023 was computer vision. This subfield of AI focuses on enabling AI programs to understand, identify, and categorize images. With the high rise in generative AI content and creation, it is
unsurprising that identifying images has become a focal point of AI initiatives. Speech recognition remained a low focus, likely due to the complications in understanding the vast amount of languages, dialects, and accents to be found within [...] Read more
Note(s): Worldwide; October to November, 2023; 1,420 respondents; IT professionals across multiple industries
Source(s): Coleman Parkes Research; Dell; Rackspace; VMware
CHAPTER 02

Segment: Adoption
 Data governance policies and strategies within businesses in response to
artificial intelligence (AI) worldwide in 2023
Governance policies and strategies for AI within businesses worldwide 2023

Share of respondents
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Privacy issues 46%

Data bias 42%

Accountability and transparency 38%

Data collection 33%

Reliability and trust 30%

Storage 28%

Processing 24%

Distribution 19%

7 Description: Most respondents had governance policies or strategies to deal with issues of privacy and data bias when engaging with AI in their organization in 2023. These were of critical importance as they are the most likely to get an organization into legal issues
and liabilities. Read more
Note(s): Worldwide; October to November, 2023; 1,420 respondents
Source(s): Coleman Parkes Research; Dell; Rackspace; VMware
 Areas of business that will require the most artificial intelligence (AI) skills
over the next 12 months as of 2023
Areas of business that will require the most AI skills over the next year as of 2023

50%
45% 44%
45%
40% 38% 38% 38% 37% 36% 36%
Share of respondents

35% 33%

30% 28%

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20%
15%
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8 Description: Generative AI and prompt engineering are the areas of business that will require the most AI skills over the next 12 months per a survey carried out in the middle of 2023. This follows the trend of 2023 where generative AI took off from its humble
beginnings as an art generator and has now reached into major industries like teaching and law. Read more
Note(s): Worldwide; July to September, 2023; 650 respondents; IT, DevOps, and Platform Engineering decision makers
Source(s): Nutanix; Vanson Bourne
 Key benefits global organizations hope to achieve with the adoption of
generative artificial intelligence (AI) as of 2024
Expected benefits from Generative AI in organizations worldwide 2024

Share of respondents
0% 10% 20% 30% 40% 50% 60%

Improve efficiency and productivity 56%

Reduce costs 35%

Improve existing products and services 29%

Encourage innovation and growth 29%

Shift workers from lower to higher value tasks 26%

Increase speed and / or ease of developing new systems / software 26%

Increase revenue 25%

Enhance relationships with clients / customers 23%

Uncover new ideas and insights 19%

Detect fraud and manage risks 18%

9 Description: Nearly 60 percent of organizations worldwide hope their efforts towards the implementation of generative artificial intelligence to result in improved efficiency and productivity, making it the most expected benefit from generative AI. In sequence, cost
reduction, improvement of existing products and services, and the encouragement of innovation and growth follow with about 35, 29 and 29 percent of the respondents claiming to expect them, respectively. Read more
Note(s): Worldwide; October 12 to December 5, 2023; 2835 respondents; First wave of quarterly surveys; director to C-suite-level respondents
Source(s): Deloitte
 Self-assessed preparedness of organizations' risk and governance worldwide
for the adoption of generative artificial intelligence (AI) as of 2024
Preparedness of global companies' risk & governance for generative AI adoption 2024

Very highly prepared 7% Not prepared 13%

Highly prepared 18%

Slightly prepared 28%

Moderately prepared 34%

10 Description: Organizations worldwide mostly self assess their risk & governance as moderately prepared in relation to generative AI (GenAI) adoption, accounting for about 34 percent of the respondents. Nearly all the respondents claim to be at least slightly
prepared, with only 13 percent of the companies claiming not to be prepared at all. Read more
Note(s): Worldwide; October 12 to December 5, 2023; 2835 respondents; First wave of quarterly surveys; director to C-suite-level respondents
Source(s): Deloitte
 Business departments exploring artificial intelligence (AI) use cases in
companies in 2023
Areas of business operations that concentrate AI use cases in companies 2023

Share of respondents
0% 5% 10% 15% 20% 25% 30% 35%

Automation of IT processes 33%

Security and threat detection 26%

AI monitoring or governance 25%

Business analytics or intelligence 24%

Automating processing, understanding, and flow of documents 24%

Automating customer or employee self-service answers and actions 23%

Automation of business processes 22%

Automation of network processes 22%

Digital labor 22%

Marketing and sales 22%

Fraud detection 22%

Search and knowledge discovery 21%

Human resources and talent acquisition 19%

Financial planning and analysis 18%

Supply chain intelligence 18%

11 Description: As of 2023, over 33 percent of IT leaders worldwide claim to explore artificial intelligence (AI) use cases in their business operation area of automation of IT processes. The departments of security and threat detection, and AI monitoring or governance
follow, with about 26 and 25 percent of the respondents claiming them as adoption-driving areas of operation. Read more
Note(s): Worldwide; November 2023; 8584 respondents; IT Professionals, in a manager or higher-level role
Source(s): IBM
 Global posture towards the use of generative artificial intelligence (Gen AI)
in 2023
Worldwide posture towards the use of generative AI 2023

Share of respondents

Individualist Collectivist

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

17%
Very familiar
24%

34%
Ever used
45%

32%
Use weekly or more
36%

25%
Very excited
35%

12%
Not worried
18%

12 Description: As of 2023, countries considered to have collective cultures responded more positively to the use of generative artificial intelligence (Gen AI). Approximately 45 percent of the respondents from collective cultures claim to have already used the technology,
in contrast to only about 34 percent of respondents from the considered individualist cultures. Read more
Note(s): Worldwide; July 27 to August 22, 2023; 16795 respondents; 17 countries; Respondents: teens 13-17, parents of 6–17, adults 18-64;
Source(s): Microsoft
CHAPTER 03

Segment: Risks
 Expected impact on economic inequality worldwide by the widespread
implementation of generative artificial intelligence (AI) as of 2024
Impact of generative AI on economic inequality worldwide 2024

Highly increase economic Highly decrease economic

inequality 10% inequality 3%
Decrease economic inequality
19%

No impact 27%
Increase economic inequality
41%

14 Description: Over half of the organizations worldwide expect the widespread implementation of generative AI (GenAI) to increase economic inequality across the globe. Only about 22 percent of the respondents expect the opposite scenario. Approximately 27 percent
of the respondents expect a widespread use of GenAI not to have any impact on this social aspect. Read more
Note(s): Worldwide; October 12 to December 5, 2023; 2835 respondents; First wave of quarterly surveys; director to C-suite-level respondents
Source(s): Deloitte
 Expected impact on the distribution of economic power worldwide by the
widespread implementation of generative artificial intelligence (AI) as of 2024
Impact of generative AI on the distribution of economic power worldwide 2024

Highly centralize economic Highly distribute economic

power 10% power 5%

Distribute economic power 25%

Centralize economic power 42% No impact 18%

15 Description: Over half of the organizations worldwide expect the widespread implementation of generative AI (GenAI) to further centralize economic power across the globe. About 30 percent of the respondents expect the opposite scenario. Only 18 percent of the
respondents expect a widespread use of GenAI not to have any impact on this social aspect. Read more
Note(s): Worldwide; October 12 to December 5, 2023; 2835 respondents; First wave of quarterly surveys; director to C-suite-level respondents
Source(s): Deloitte
 Companies' implemented risk management strategies and control of the
use of generative artificial intelligence (GenAI) in 2023
Organizations' implemented control of the use of generative AI 2023

Share of respondents
0% 10% 20% 30% 40% 50% 60%

Data limitations 63%

Tool restrictions 61%

Data verification requirements 36%

GenAI not permitted 27%

16 Description: As of 2023, approximately 63 percent of the surveyed companies mention data limitations as a tool of controlling the use of generative artificial intelligence (Gen AI) in their companies to manage the risks of technology use. Tool restrictions come in
second, with about 61 percent of the respondents. Read more
Note(s): North America, Asia, Europe, Central and South America; 2023; 2600 respondents
Source(s): Cisco Systems
 Companies' concerns related to the use of generative artificial intelligence
(GenAI) in 2023
Organizations' concerns from the use of generative AI 2023

Share of respondents
0% 10% 20% 30% 40% 50% 60% 70%

Could hurt company’s legal rights (IP) 69%

Information could be shared with public or competitors 68%

Wrong results 68%

Detrimental for humanity 63%

Could replace other employees 61%

Could replace my job 58%

17 Description: As of 2023, companies using generative artificial intelligence (Gen AI) are mostly concerned that the technology's use could possibly hurt the company's legal rights (IP). The possibility of shared information with the public or competitors and of wrong
results follow, with about 68 percent of the respondents claiming concern related to it. Read more
Note(s): North America, Asia, Europe, Central and South America; 2023; 2600 respondents
Source(s): Cisco Systems
 Global concerns over the use of generative artificial intelligence (Gen AI) in
2023
Concerns over the use of generative AI worldwide 2023

Share of respondents

Not very worried, somewhat Neither worried or unworried Very, somewhat worried

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Generating scams with AI 13% 18% 71%

Deepfakes 13% 18% 69%

Sexual or online abuse 14% 17% 69%

AI hallucinations 14% 20% 66%

Data privacy 15% 23% 62%

Amplify biases 14% 26% 60%

Creating relationships with an AI 18% 26% 56%

18 Description: As of 2023, most respondents worldwide expressed to be either very or somewhat concerned about several potential negative outcomes from the use of generative artificial intelligence (Gen AI). The scenario that most concerns the respondents is the
possibility of the generation of scams with generative AI, with 71 percent of the respondents being very or somewhat worried about it. Read more
Note(s): Worldwide; July 27 to August 22, 2023; 16795 respondents; 17 countries; Respondents: teens 13-17, parents of 6–17, adults 18-64;
Source(s): Microsoft
 Initiatives taken to manage implementation risks of generative artificial
intelligence (AI) by organizations worldwide as of 2024
Risk management initiatives towards generative AI implementation worldwide 2024

Share of respondents
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Monitoring regulatory requirements and ensuring compliance 47%

Establishing a governance framework for the use of generative AI tools /

46%
applications

Conducting internal audits and testing on generative AI tools / applications 42%

Training practitioners how to recognize and mitigate potential risks 37%

Ensuring a human validates all generative AI content 36%

Using a formal group or board to advise on generative AI-related risks 34%

Keeping a formal inventory of all generative AI implementations 32%

Using outside vendors to conduct independent audits and testing 26%

Single executive responsible for managing generative AI-related risks 21%

19 Description: Organizations worldwide claim to implement at least one initiative to manage possible risks from the implementation of generative AI (GenAI). Nearly half of the companies listed monitoring regulatory requirements and ensuring compliance, and
establishing a governance framework for the use of generative AI tools and applications. Ensuring a human validates all GenAI content came in fifth, with around 36 percent of the respondents. Read more
Note(s): Worldwide; October 12 to December 5, 2023; 2835 respondents; First wave of quarterly surveys; director to C-suite-level respondents
Source(s): Deloitte
 Economic, technological, and regulatory risks to enterprises in the United
States in 2023
Risks posed to company survival in the U.S. 2023

Share of respondents

Moderate risk Serious risk

0% 10% 20% 30% 40% 50% 60% 70% 80%

More frequent and/or broader cyber attacks 38% 36%

Uncertain macroeconomic environment 45% 27%
Talent acquisition and retention 45% 26%
Recession 46% 23%
Margin pressure affecting earnings 40% 28%
US regulatory environment 38% 27%
Geopolitical uncertainty 36% 25%
New technologies making current business model irrelevant 37% 20%
Not meeting sustainability commitments 32% 19%
Climate change 31% 19%
Polarization influencing consumer decisions 31% 19%
Lack of consumer trust in new tech-enabled products and services 33% 16%

20 Description: Frequent and broad cyber attacks constitute the most concerning risk to enterprises in the U.S. in 2023, with some 74 percent of company executives stating so. The last concern was in consumer trust, with less than 50 percent of respondents believing it
to be a concern. Read more
Note(s): United States; August 1st to 8th, 2023; 609 respondents
Source(s): PwC
CHAPTER 04

Segment: Challenges
 Leading three challenges in starting artificial intelligence (AI) projects in
business worldwide in 2022
Three leading challenges to starting AI projects worldwide 2022

40%
37%

35% 34%
33%

30%
Share of respondents

25%

20%

15%

10%

5%

0%
Proving business value Lack of execituve commitment Choosing the right AI technologies

22 Description: The most difficult aspect of beginning a new artificial intelligence (AI) project within an enterprise is the difficulty in proving its business value. This can stem from a multitude of reasons but most often it is because AI projects take time to show their value
and every individual program will affect each business in slightly different ways. Nearly 40 percent of respondents believed this to be their main challenge in beginning a new AI project. Read more
Note(s): Worldwide; 2022
Source(s): Stanford University
 Which of the following challenges are most likely to slow down your
enterprise transformation in 2024
Technological challenges slowing down enterprise transformation 2024

50% 46%
45%
40% 37% 36% 36%
34% 34%
Share of respondents

35%
30% 28% 27%
25%
20%
15%
10%
5%
0%
Technology Cybersecurity or A risk-averse Lack of skills within Contraints from Immature data- Transformation Spiralling costs
function lacking privacy concerns culture that is slow our organization legacy technology management fatigue
the goverance and to embrace change strategies
coordination to
effectively support
transformation
initiatives

23 Description: Technology being utilized wrong or implemented poorly is the main issue standing in the way of enterprise technological changes in 2024. Cybersecurity and privacy concerns come second, a reasonable issue as new technology is usually vulnerable to
malicious usage in its early stages. Read more
Note(s): Worldwide; 2023; 2100 respondents; Executives from 16 countries
Source(s): KPMG
 Leading challenges in implementing artificial intelligence (AI) initiatives in
businesses in 2023
Main challenges in implementing AI initiatives in businesses 2023

Share of respondents
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Challenges in measuring and proving the business value of the AI solution 42%
Lack of technological infrastructure to support AI 38%
Storage of skilled AI talent 32%
Lack of clean data 24%
Lack of trust towards AI-based decisions 22%
Algorithm/model failure 19%
Inability to find the right data 17%
Legal concerns, risks, or compliance issues 14%
Lack of skills to exploit the results 11%
Lack of clear strategy/clarity of success metrics 9%
Lack of new use cases across the business 7%
Lack of ongoing investment 5%
Lack of senior management commitment 4%

24 Description: Challenges in proving the usefulness of AI initiatives to a business is the greatest challenge when attempting to implement AI programs within a company in 2023. This is unsurprising since the technology is rapidly growing, relatively young, and metrics
often do not exist or require more time for development. Lack of investment and senior management commitment were the least faced challenges. This, too, is unsurprising as investment has been heavily favoring AI since early 2023 and [...] Read more
Note(s): Worldwide; October to November, 2023; 1,420 respondents
Source(s): Coleman Parkes Research; Dell; Rackspace; VMware
 Leading infrastructure challenges for AI developments worldwide in 2023
AI infrastructure challenges globally 2023

Share of respondents
0% 5% 10% 15% 20% 25% 30% 35%

Data management 32%

Security 26%

Compute performance 20%

Networking 13%

Storage 8%

25 Description: Data management represented the largest challenge to AI development in 2023. Companies around the world struggle to manage the considerable amount of data required and generated by AI use. Storage of said data was only a concern for eight
percent of respondents, suggesting plenty of storage capacity. Read more
Note(s): Worldwide; 2023; 1,516 respondents
Source(s): S&P Global Market Intelligence; WEKA
 Companies' readiness in terms of artificial intelligence (AI) in 2023, by
domain
AI readiness in companies 2023, by domain

Share of respondents

Pacesetters Chasers Followers Laggards

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Strategy 29% 44% 23% 4%

Infrastructure 17% 30% 45% 8%

Data 13% 30% 40% 17%

Governance 17% 27% 45% 11%

Talent 17% 36% 41% 6%

Culture 9% 40% 38% 13%

26 Description: As of 2023, the strategy domain is the one with the largest number of companies claiming to be either a pacesetter or a chaser in terms of artificial intelligence (AI) readiness. The data domain held the largest number of laggards in the technology. Read
more
Note(s): North America, Asia, Europe, Central and South America; 2023; 8000 respondents; Cisco AI Readiness Index
Source(s): Cisco Systems
 Companies' perceived need for more effort in reassuring customers of
their data privacy in the use of artificial intelligence (AI) in 2023
Need for further data privacy reassurance strategies in companies' AI use 2023

Unsure 2%
Disagree 7%

Agree 91%

27 Description: As of 2023, over 90 percent of the respondents claim their companies must invest more into reassuring customers their data is being used for intended and legitimate purposes only throughout the use of artificial intelligence (AI). Read more
Note(s): North America, Asia, Europe, Central and South America; 2023; 2600 respondents
Source(s): Cisco Systems
 American and European companies' responsible person for the artificial
intelligence (AI) strategy in 2023, by industry
Leaders in charge of AI strategies in the U.S. and Europe 2023, by industry

I do (AI executive) Chief information or technology officer No one

The executive committee as a whole Another executive in the technology function CEO
Another executive in another function COO CFO
CMO The board Don't know
100% 2% 2% 5% 4% 5%
2% 2%
4% 6% 5% 8%
90% 2% 10%
9% 6% 5%
5% 8% 5%
80% 10% 5%
9%
Share of respondents

70% 5% 20%
9% 10% 21%
60%
13%
50% 26% 21%
10%
40%
70%
30% 60%
20% 37% 40% 38%
10%
0%
Financial services or fintech Technology & services Healthcare & life sciences or Consumer Other
biotech

28 Description: As of 2023, most surveyed senior AI executives across all addressed industries in the United States of America and Europe claimed to be responsible for the AI strategies in their companies. The consumer industry had the largest share of respondents
answering that no one owns the AI strategy today, and about five percent of the executives in healthcare & life sciences or biotech claimed no to know. Read more
Note(s): North America, Europe, United States; 2023; 158 respondents; Executives self-reporting anonymously
Source(s): Heidrick & Struggles
 Internal technological and labor challenges in enterprises in the United
States in 2023
Challenges to internal business transformation in the U.S, 2023

Share of respondents

Somewhat of a challenge Significant challenge

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Achieving measurable value from adopting new technologies 49% 39%

Changing our operating model to support our new vision 48% 37%

Cost of adopting new technology 47% 37%

Training existing talent on new technology 56% 28%

Striking the right balance between short-term cost cutting and investing to drive
49% 34%
growth
Poor succession plan 47% 32%

Employees fear that new technology will make their jobs obsolete 49% 25%

Company culture is not conducive to innovation 45% 29%

Difficulty changing where we do business 46% 26%

29 Description: Achieving measurable value from new technologies is the chief challenge to most U.S. enterprises in 2023. Nearly 90 percent of respondents expected this to prove an internal challenge to business change. Notable was that training new talent was far
more likely to pose somewhat of a challenge rather than being a major challenge, with over 55 percent of respondents expecting it to be somewhat of a challenge. Read more
Note(s): August 1st to 8th, 2023; 609 respondents
Source(s): PwC
 Sources

Cisco Systems
Coleman Parkes Research
Dell
Deloitte
Heidrick & Struggles
IBM
IDC
KPMG
Microsoft
Next Move Strategy Consulting
Nutanix
PwC
Rackspace
S&P Global Market Intelligence
Stanford University
Statista
Tractica
Vanson Bourne
VMware
WEKA

30