While AI tools like ChatGPT are changing how people work and unforeseen business risks arise, the current economic climate is also creating new concerns. Ransomware, deepfakes and other sophisticated cyber security issues are also emerging and evolving at full speed.
A new survey by risk management software solution provider Riskonnect revealed that the new risks are increasing the pressure on companies to meaningfully change how they manage threats. Budgets are shifting, risk management functions are growing and strategies are changing.
More than 300 risk and compliance professionals worldwide took part in the survey about the new threats facing organisations today and how they are revamping their risk management playbooks.
The survey found that generative AI which burst onto the scene this year, has brought a new crop of business risks. The vast majority of companies – 93% – anticipate significant threats associated with generative AI but just 9% of companies say they’re prepared to manage generative AI risks. That is a significant readiness gap.
Companies’ top concerns about AI include data privacy and cyber issues (65%), employee decisions based on erroneous information (60%) and employee misuse and ethical risks (55%). Copyright and intellectual property risks (34%) and discrimination risks (17%) were not far behind.
Surprisingly, only 17% of organisations have formally trained or briefed their entire company on generative AI risks. The seeming lack of urgency is most likely because the technology is moving so fast that companies don’t know where to start. It could also mean companies are not yet feeling the impact of these risks, but that could change quickly. Indeed, generative AI is expected to reach 77.8m users in 2024. That is more than double the adoption rate of both tablets and smartphones over a comparable time period.
Survey respondents have generally taken a wait-and-see approach when it comes to getting a handle on generative AI risks and implementing safeguards. But given AI’s popularity, that mindset will need to shift. The appeal of technologies like ChatGPT to enhance efficiency is undeniable, especially as labour shortages persist. It is estimated that generative AI has the potential to automate work activities that absorb 60-70% of employees’ time today.
Top risk drivers identified during the survey included talent shortages and layoffs (50%); recession risk, inflation and monetary tightening (49%) and ransomware and security breaches (47%). The rise of generative AI is the latest example of how quickly today’s risk landscape evolves. M