India among top 3 countries most optimistic about generative AI

Generative artificial intelligence (GenAI) is transforming businesses at rapid pace globally, with a new study published on Thursday, stating that six out of 10 Indian executives are optimistic about its impact on workplace.

The research released by consulting firm Boston Consulting Group (BCG), based on a survey of more than 12,800 business executives across industries in 18 countries including 1,000 from India,  further showed that Brazil (71%) is the most optimistic country about the impact of GenAI on workplace followed by India (60%) and the Middle East (58%).

Meanwhile, the least optimistic are the US (46%), the Netherlands (44%), and Japan (40%). The geographies most concerned about AI are the Netherlands (42%), France (41%), and Japan (38%), while the least concerned are the Middle East (25%), Brazil (19%), and India (14%).

When asked about AI’s impact on work, 52% of all respondents’ ranked optimism as one of their top two sentiments, a 17-point jump from 2018 when this survey was last conducted. In fact, the study showed that concern regarding GenAI saw the steepest decline compared with five years ago, falling from 40% to 30%.

The research also showed that 62% of regular users of generative AI are optimistic about it, compared with 36% of non-users. Notably, GenAI is still used by most senior-level executives in firms, as a majority of leaders (80%) report that they use generative AI tools regularly, compared with just 20% of frontline employees. That said, frontline employees made up the largest percentage of nonusers (60%) of generative AI tools overall.

Other concerns include, an anxiety that their job is likely to be eliminated by AI. When polled, 86% of respondents believe they will need training to sharpen their skills. However, only 14% of frontline employees say they have gone through any upskilling training to date, compared with 44% of leaders.

Business leaders unanimously agree that the need of the hour for AI to be effective is proper regulation and the responsible use of the technology. And not just the government, many private companies are already developing and deploying their own responsible AI frameworks to manage this powerful emerging technology in a way that aligns with organisational purpose and ethical values, observed BCG researchers.

Employee views on the effectiveness of these programs vary widely. While 68% of leaders feel confident about their organisation’s responsible use of AI, a mere 29% of frontline employees believe their companies have implemented adequate measures to ensure AI is used responsibly.

“The companies that capture the most value from AI follow the 10-20-70 rule: 10% of their AI effort goes to designing algorithms, 20% to building the underlying technologies, and 70% to supporting people and adapting business processes,” said Vinciane Beauchene, a BCG managing director, partner and co-author of the research. 

“Upskilling is essential and must be done continuously. It should go beyond learning how to use the technology and allow employees to adapt in their role as activities and skill requirements evolve," Beauchene added.

Notably, India's IT industry body Nasscom earlier this week, released guidelines to establish common standards for research, development, and use of generative AI in India in a responsible manner. The guidelines developed in consultation with the technology industry, AI experts, researchers, and members of academia and civil society, aim to help the industry use generative AI for societal good and build trust in the technology.