OpinionOvercoming risks inherent in implementing GenAI
Opinion
Overcoming risks inherent in implementing GenAI
Einat Benjamini, founder of the Israeli branch of Concentrix, states that “every company must prepare for implementation of revolutionary technologies like Generative AI to reduce risks and uncertainties and maximize benefits in the medium and long term.”
Artificial intelligence has already become a reality, transforming how companies and organizations operate worldwide. Many believe its impact will rival the invention of the personal computer, the Internet, and the smartphone — perhaps even surpassing them. Many companies have already adopted AI to automate repetitive tasks, uncover hidden value in their data, optimize customer relationships, improve customer experiences, and more.
In the past two years, Generative AI has triggered another revolution, altering the landscape of many businesses and sectors of the global economy. However, many organizations remain hesitant, standing on the sidelines due to various concerns. Here, we outline the main concerns and explain how they can be addressed.
Concern about the impact on end-user interaction
Many businesses are apprehensive about how new technology will affect relationships with customers, partners, suppliers, and employees. Will the personal touch be lost, and will customers miss it? Will they trust AI-based interactions as much as they trust human interactions? A recent Concentrix customer experience survey found that 71% of companies fear Generative AI will negatively impact customer interactions, damaging brand reputation and causing a loss of customer trust.
To alleviate these concerns, companies must be fully transparent about their use of the technology and inform end users when interactions involve an AI system. Moreover, they should provide a human alternative whenever preferred by the user. Finally, companies must continuously monitor these interactions through customer feedback and swiftly make necessary adjustments to ensure satisfaction.
Fear that the technology is not mature for commercial use
Many companies remember well how overhyped technologies in the past turned into failures. They now fear that new technology may not be mature enough for large-scale commercial use, particularly in the field of customer experience. According to our survey, less than 40%
of participants expressed confidence in the technology's maturity, and 33% were unsure if it would significantly enhance the customer experience. The only way to overcome this fear is to initiate small-scale experimental projects, measure their effectiveness and value, and make necessary adjustments based on the results. Successful experimental projects will pave the way for large-scale deployment without fear of risk.
Doubts about security and compliance with corporate governance
AI technologies, like any data technology, are vulnerable to cyberattacks, which concern decision-makers, especially regarding customer information. Fifty percent of survey participants cited security risks as a major reason for their hesitation about AI, and 37% were concerned about its compatibility with corporate governance rules. The solution is to build a robust cybersecurity system, as every organization should for their existing computing infrastructures and digital applications. Additionally, the impact of generative artificial intelligence on corporate governance rules must be studied, and necessary adjustments must be made.
Uncertainty about suitable suppliers to improve customer experience
The market is flooded with tools, solutions, suppliers, and partners in AI, making it complex and challenging to choose the right solution and supplier to improve customer experience. Each option has its advantages, disadvantages, and limitations. Thirty-two percent of companies indicated that the inability to differentiate between suppliers and solutions delayed the implementation of the technology in their company. When the brand's reputation and the company's future are at stake, and there is no specific knowledge on how to decide, this is understandable.
To address this, the organization must establish a working group comprising representatives from all relevant units to conduct in-depth research, weigh the pros and cons of each provider and solution, and select those that best meet the organization's needs. These should be tested in small-scale experimental projects, and based on the results, a decision can be made on whether to implement them organization-wide.
Fear of high costs
Like any other technology, applying GenAI technology requires a significant budget allocation. Eighteen percent of companies indicated that high costs are the main obstacle to implementing this type of solution. Although the immediate financial outlay is high, it yields a return in the long term through automation, efficiency improvements, manpower savings, improved customer experience, revenue growth, and profitability. For this reason, a gradual implementation of the solution should be considered to ensure a return on investment and allow for large-scale implementation with confidence.
History shows that the march of technological innovation cannot be halted and that first adopters of new technology gain a market advantage. However, every company and organization must prepare professionally for the examination and implementation of revolutionary technologies like Generative AI to reduce risks and uncertainties andmaximize benefits in the medium and long term.
Einat Benjamini is the founder of the Israeli branch of the global technology and services leader, Concentrix.
