Global CEOs are facing challenges when it comes to formulating and implementing AI strategies, according to a recent survey conducted by EY. While executives recognize the urgent need to act on generative AI, uncertainties in this area, including the rise of firms claiming AI expertise, are hindering their ability to make bold moves in deploying the technology. This has led to a decline in merger appetite, with only 35% of CEOs planning mergers and acquisitions in the next 12 months. Geopolitical tensions are also influencing this trend.
In the realm of fraud prevention, a survey of 500 American fraud and risk professionals reveals that half of companies believe their measures against synthetic fraud are only somewhat effective. Synthetic fraud, aided by AI, has become increasingly sophisticated, with fraudsters nurturing accounts over extended periods of time for greater financial gain. Financial institutions are struggling with legacy technologies and techniques that are inadequate against these sophisticated synthetic identities. The financial impact is considerable, with one in five companies reporting average losses per incident between $50,000 and $100,000.
Cybersecurity preparedness is another area of concern, as highlighted by KPMG International’s CEO Outlook. Only 56% of Canadian executives feel prepared for a cyberattack, with 93% expressing concern about generative AI’s potential to amplify breach vulnerabilities. This sentiment is echoed by KPMG Canada’s Private Enterprise Business Survey, where 81% of small to mid-sized business leaders recognize generative AI as both a tool for enhanced cyber threat detection and a potential catalyst for increased attacks.
When it comes to financial planning advice, a recent survey found that 62% of investors ages 45 and over were very satisfied with advice from a generative AI tool, while only 38% of investors under 45 felt the same. Comfort levels increased when AI recommendations were verified by financial planners, with 21% feeling very comfortable and 52% feeling somewhat comfortable. However, a CNBC survey indicates that most Americans have not used generative AI tools for financial advice, with only 37% expressing interest in using AI for money management.
In conclusion, global CEOs are grappling with challenges in AI strategies, particularly in formulating and operationalizing these plans. The uncertainties surrounding generative AI and the rise of firms claiming AI expertise are hindering their ability to make bold moves. This has resulted in a decline in merger appetite. Additionally, synthetic fraud and cyber threats pose significant challenges, highlighting the need for more advanced technologies and techniques. While some investors are satisfied with generative AI financial advice, others still harbor concerns and prefer verification by human experts.
