Report: Wide Skills Gap, Unclear Roadmap, Investment Priorities Hampering Growth of AI

A report by Boston Consulting Group (BCG), a global management consulting solutions’ company has revealed wide skills gap, unclear roadmap and investment priorities are hindering the growth of Artificial Intelligence (AI).

According to the report, 66 per cent of global and 65 per cent of African executives surveyed, were dissatisfied with the progress their companies made in the expected productivity gains from AI and Generative AI (GenAI).

The survey, BCG said, featured more than 1,400 C-suite executives in 50 markets, including Africa.

Generative AI exploded into the public consciousness in 2023, promising to transform the way business functions, but despite the potential, leaders are struggling to convert hype into reality.

The report said the dissatisfaction of global executives on the progress of AI, is based on three primary reasons: a lack of talent and skills (62 per cent), an unclear AI and GenAI roadmap and investment priorities (47 per cent), and absence of strategy regarding responsible AI and GenAI (42 per cent).

Giving details of the report, BCG’s CEO, Christoph Schweizer, said: “This is the year to turn GenAI’s promise into tangible business success. Almost every CEO, myself included, has experienced a steep learning curve with GenAI. When technology is changing so quickly, it can be tempting to wait and see where things land. But with GenAI, the early winners are experimenting, learning, and building at scale.”

The report, titled: “BCG AI Radar-From Potential to Profit with GenAI,” said 71 per cent of global executives surveyed, plan to increase tech investments in 2024, which is 11-point jump from 2023, as even more 85 per cent plan to increase their spending on AI and GenAI.

While more than three-quarters (77 per cent) of African executives plan to boost their tech investments, less than half (43 per cent) puts AI and GenAI as their top tech priority for 2024, compared to half (51 per cent) globally. 82 per cent of executives in Africa plan to increase their AI and GenAI investments in 2024, compared to 85 per cent overall. 54 per cent of global leaders already expect AI to provide cost savings this year, primarily through productivity gains in operations, customer service, and Information Technology (IT), the report said.

Managing Director and Partner at BCG South Africa, Nihmal

Marrie, said: “African executives are among the most optimistic in expecting productivity gains from AI and GenAI. More than half (59 per cent) are expecting 10 per cent or more productivity gains from AI and GenAI this year compared to less than half (46 per cent) of executives globally.”

Global Leader of BCG X and a Co-author of the research, Sylvain Duranton, said: “Generative AI is radically reshaping businesses. Leading companies on the GenAI front are planning to realise up to $1 billion in productivity gains, and they are already looking at ways to reinvest into new business models and growth. This is a second chance for companies who missed the first AI wave.”

“Although a small percentage of companies are already reaping the rewards of AI and GenAI, others are either playing catch up or standing on the sidelines, the report said, adding that more than 60 per cent of global executives surveyed say their firms are still waiting to see how AI-specific regulations develop, just as six per cent of global companies have trained more than 25 per cent of their people on GenAI tools so far.