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82% of firms pressing ahead with investment in AI, despite 50% being unclear on its business impact or how to implement it

A lack of organizational expertise and lagging regulation could hamper AI adoption, according to workforce transformation experts, Orgvue

Published by Orgvue 

  • 69% of organizations are confident AI will be embedded in core business operations by 2025, but 39% admit they don’t have the organizational expertise to do this.
  • Other barriers to AI adoption include employee skepticism (36%) and a lack of regulation on using AI in the workplace (33%).

March 13th, 2024 – London, UK / New York, US: Research from Orgvue, the organizational design and planning software platform, shows that businesses continue to ramp up investment in AI, despite being unclear on its business impact or how to implement it. 82% of organizations have already invested, with another 33% saying they will increase this by more than 50% in the coming year.

Based on an international survey of 1,000 C-suite and senior decision makers at medium and large organisations, the report, Human-first, machine enhanced: the role of AI in workforce transformation, highlights contradictions in the business community concerning technology investment and AI’s impact on the workforce.

On the one hand, 61% of respondents said they expect AI to replace people in their organization, with 69% saying they think AI will be the main driver of workforce transformation over the next three years. On the other hand, 48% are unsure how they will manage developments in AI to optimize use of the technology.

Oliver Shaw, CEO of Orgvue, commented:

“Organizations are beginning to realize that the practicalities of embedding AI into core business operations is far from simple. There’s a dichotomy between the need for business leaders to prepare for AI entering the workforce, their desire for change, and the organization’s ability to make this transformation a reality.

“This gap in thinking stems from a lack of clarity on exactly how AI will impact the business and the workforce. Indeed, our research indicates spending so far has been more of a gold rush than a carefully plotted journey. This will make managing the transformation all the harder.”

Business leaders are excited about AI’s potential for growth and productivity (79%), but 70% said they have a responsibility to protect their workforce from redundancies before adopting AI and 78% think human intervention is critical to preventing negative outcomes from AI. For this reason, 80% plan to reskill employees to use AI in the workplace.

Similarly, 78% want governments to introduce stricter rules and regulations, while 54% believe regulation has not kept pace with investment in AI and 70% saying AI should be regulated immediately.

Shaw added:

“Whether it’s optimism or naivety, CEOs are confident AI will solve their business challenges. But the data shows that divisional leaders are less convinced by the impact of AI, with a pronounced skepticism at this level of the value AI can bring to the business and how quickly it can be embedded into everyday operations. 

“This is a dangerous position for organizations to find themselves in. A disconnect in perspective – between those at the top and those responsible for delivery – will ultimately derail any long-term plans for business change.

“To achieve their AI ambitions, CEOs should arm themselves with a better understanding of how AI will truly impact the work their people do today and the skills their organization has, as well as how this may change over time.”


About Orgvue

Orgvue is an organizational design and planning platform that empowers your business to transform its workforce by understanding the work people do and the skills they have. Our platform connects strategy to structure, providing clarity of vision, so you can build a more adaptable, better performing organization that thrives in a constantly changing world of work.

The world’s largest and best-known enterprises and consulting firms use Orgvue to visualize and model current and future states of the organization and make faster, more informed decisions. The company is headquartered in London, with offices in Philadelphia, The Hague, Toronto, and Sydney.

For media enquiries and comment requests, please contact: / +44 20 7861 2800 (UK) / +1 415 891 4900 (US)

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