Employers prefer 'incremental adoption' of AI, finds report
The state of the economy is going to be the biggest obstacle for businesses this year, according to Canadian executives.
In looking at the external factors or issues that will have the greatest impact on organizations in 2024, an economic downturn or recession is at the top of the list, followed closely by inflation, according to a recent report from the Conference Board of Canada.
Source: The Conference Board of Canada
As of the second quarter of 2024, 72.1% of Canadian employers are very optimistic or somewhat optimistic about their future outlook over the next 12 months, reported Statistics Canada (StatCan).
Meanwhile, attracting and retaining talents is the top internal factor or issue that will have the greatest impact on organizations in 2024, according to executives in The Conference Board of Canada’s report.
Source: The Conference Board of Canada
Chief executive officers are "cautiously optimistic" the previous quarter and are planning to hoard employees amid persistent labour shortage concerns, according to a separate report.
Top priorities for human capital management, AI
Also, Canadian C-level executives say their top priority for human capital management is the development of leadership and workforce capabilities, reports The Conference Board of Canada.
To ensure long-term growth over the next three to five years, investment plans will prioritize innovation (37.6 per cent), digital transformation such as artificial intelligence (AI) (26.9 per cent), and developing new lines of business (25.4 per cent).
And Canadian executives believe AI will bring a lot of benefits, according to companies. These include:
Source: The Conference Board of Canada
However, C-level executives are taking a cautious approach to AI adoption. Just under one-fifth (19.6 per cent) of Canadian C-level executives have already adopted AI in their business operations.
“Only 3.0 per cent of those in Canada and 7.0 per cent globally plan to immediately adopt AI across all business units or operations,” says The Conference Board of Canada.
“The preferred plan is incremental adoption, with 12.5 per cent of Canadian C-level executives planning to adopt AI ‘immediately’ across some business units or operations and 51.2 per cent planning to ‘explore options for adoption in the future’.”
AI continues to be a significant consideration on the C-suite's agenda. One half (49%) of respondents say it poses a direct threat to their organization, according to a previous report.
