Artificial Intelligence (AI) is gaining traction among British companies, prompted by calls from Peter Kyle for regulatory bodies to keep up with the accelerating pace of development.
The UK government is pushing for a more significant role for artificial intelligence (AI) in the regional economy, urging regulators to embrace the technology and double down on investments. This push comes as the global competition in AI adoption intensifies, with companies striving to stay competitive and avoid regulatory challenges.
Franck Greverie, Capgemini's chief technology and portfolio officer, has warned that rapid adoption of AI does not necessarily translate into large-scale deployment with tangible returns on investment. He emphasised the importance of strengthening data foundations and building a trusted environment that is compliant, secure, and ensures necessary privacy for firms to reap the benefits of AI.
The Capgemini report, published on Friday, reveals that 61% of global firms plan to increase investment in AI over the next twelve months. In the UK, nearly a third of companies have already scaled AI across their operations, marking a fivefold jump in just two years. However, the report also highlights concerns about readiness for AI implementation.
Peter Kyle, the tech secretary, announced £2.7m in funding for watchdogs to trial AI tools in various areas, including aviation safety and nuclear oversight. The government is using AI to sharpen its competitive edge and cut red tape, aiming to reduce approval times for new products and services as a means to attract fast-growing tech firms.
Despite the ambition, many companies are struggling to enforce governance frameworks. In the UK, only 28% of companies have the right legal teams in place to tackle issues around intellectual property and copyright related to AI. The report particularly highlights a discrepancy between technological possibilities and organisational reality, with traditional HR functions in many companies viewed primarily as administrative rather than strategic.
Business groups support efforts to streamline oversight but caution against overstating AI's capabilities. Ben Bilsland, head of technology at RSM UK, stated that regulators need adequate resources and independence to responsibly utilise AI tools.
As the race for AI adoption continues, both businesses and regulators risk being unprepared without stronger regulations. The Capgemini report suggests that the market for AI is still evolving, with companies seeking more cost-effective solutions to prevent escalating costs. In response, companies are turning to smaller, cheaper AI models, and many are looking to prevent "bill shocks" from escalating cloud costs.
Despite the challenges, over half of British firms said the technology's benefits outweigh its environmental costs, which is slightly above the global average. The UK has seen a surge in tech firm launches, with over 14,000 new firms launching in the second quarter, and executives view Britain as a more attractive base than the US or Europe.
In summary, the UK government is urging regulators to embrace AI and boost regional investment, while Capgemini warns that businesses are unprepared for the governance challenges of generative artificial intelligence. The race for AI adoption is heating up, and both businesses and regulators must be prepared to navigate the complexities of this emerging technology.
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