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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 (18th June 2024) in the Nash Squared Digital Leadership Report Pulse Survey, 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.

Bev White, CEO of Nash Squared, said:

“Our Digital Leadership Report Pulse Survey paints a picture of great promise in AI, but also one where most tech leaders are still trying to make it work. There’s no doubt there have been some incredible advances. One tech leader mentioned how the last year has seen a giant leap in cancer screening through AI – good news for us all. Another talks about how Machine Learning has supported the increase in fundraising revenue for their higher education institution, opening access to a wider student population.

But although the ’replace jobs’ impact of GenAI is headline grabbing news, in our discussions with tech leaders there is a sense that its impact will be evolutionary rather than revolutionary. As organisations change and grow AI will be stitched into the operations and structure; its impact happening bit by bit. In fact the Pulse Survey indicates that organisations with company-wide implementations of GenAI are in fact more likely to be increasing tech headcount in the next year than the average.”

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.

About the Report

This Nash Squared Digital Leadership Report Pulse Survey was created to provide a mid-year update to the Digital Leadership Report which was published in November 2023. It forms part of this larger annual survey of technology leadership, which is the world’s largest and longest running survey of senior technology decision makers, identifying technology trends for over 25 years, and taking in the views of over 50,000 technology leaders over this time.

The Pulse Survey was undertaken in May 2024 and captures the views of 322 tech leaders globally (182 in the UK) on key factors that may have changed in the last six months. Most had taken part in the Nash Squared annual Digital Leadership Report, allowing Nash Squared to supplement the data of this shorter Pulse Survey with a more extended data set (2,100 responses).

The average technology budget was $5m-$10m. Job roles of respondents: CIO / CTO / Director 53%, Head of tech / digital 20%, Technology practitioner 19%, CEO/MD 7%. Responses came from 24 countries.

The next annual Nash Squared Digital Leadership Report will be published in February 2025. To view a full copy of the results, please visit https://www.nashsquared.com/dlrpulsesurvey.

About Nash Squared

Nash Squared are the leading global provider of technology and talent solutions.

We’re equipped with a unique network, that realises the potential where people and technology meet. For over three decades we’ve been helping clients solve broad and complex problems, building and transforming their technology and digital capability.

www.nashsquared.com

Media Contacts:

David Pippett
ProServ PR

david@proservpr.com

+44 (0) 7899 798197

Michelle Thomas
Nash Squared

michelle.thomas@nashsquared.com

+44 (20) 7333 2677