Modern Health Institute (MHI)
for continuous health transformation
Research and Strategy Institute;
Knowledge Platform &
Advisory Consulting
Joaquim Cardoso MSc.
Chief Research and Strategy Officer (CRSO);
Chief Editor;
& Senior Advisor
September 15, 2023
Key takeaways:
Enthusiasm for AI Investment: CEOs are highly enthusiastic about AI investment, with tens of billions of dollars poured into generative AI applications, notably in drug development and software coding. This reflects a significant commitment to harness AI’s potential for various industries.
Example: Pharmaceutical companies are using AI to accelerate drug discovery processes. For instance, AlphaFold, an AI system developed by DeepMind, has made significant strides in predicting protein structures, which is crucial for drug design.
Positive Outlook on AI: A significant majority (65%) of CEOs believe that AI is a force for good, driving business efficiency and creating positive outcomes for society. They recognize its potential to bring about innovations in areas like healthcare treatments.
Example: AI-driven diagnostics and telemedicine solutions have improved healthcare accessibility and efficiency, particularly during the COVID-19 pandemic.
Concerns About Unintended Consequences: CEOs express concerns about the unintended consequences of AI, including social, ethical, and criminal risks. Two-thirds (65%) believe more work is needed to address these risks, such as cyberattacks and disinformation campaigns.
Example: Deepfake technology can be used to create convincing fake videos, raising concerns about its potential for spreading misinformation and harming individuals’ reputations.
Balanced View on Workforce Impact: A significant portion of CEOs believes that AI’s impact on replacing human jobs will be counterbalanced by the creation of new roles and career opportunities. They reject fears that AI will significantly reduce workforce numbers.
Example: In manufacturing, AI-powered robots may replace certain repetitive tasks, but they also create jobs in AI programming, maintenance, and oversight.
Role of Government and Businesses: CEOs recognize the role of government policymakers and regulators in establishing rules and guardrails for AI’s use. They also emphasize the responsibility of the business community to address ethical implications, privacy concerns, and potential disruptions in the digital environment.
Example: GDPR (General Data Protection Regulation) in the European Union is an example of government regulations addressing privacy concerns in the digital age.
Strategic Investment in AI: Many CEOs are actively integrating AI-driven product or service changes into their capital allocation processes. They are focused on maximizing the current and future benefits of AI for their businesses.
Example: Companies like Amazon and Google have heavily invested in AI to enhance their recommendation systems and customer experiences.
Overall, CEOs are embracing AI’s potential for positive impact on businesses and society while acknowledging the need for responsible development and addressing potential risks.
CEOs embrace the promise of artificial intelligence — but with significant concerns (Chapter 1)
This is an excerpt of the publication “If AI holds the answers, are CEOs asking the right strategic questions?”, published by EY on September 2023, authored by “Andrea Guerzoni; Nadine Mirchandani and Barry Perkins”
The headline-grabbing explosion of generative AI in late 2022 and early 2023 has captured the imagination of business leaders, investors and consumers alike.
Tens of billions of dollars have been invested into generative AI applications, with the most-funded use cases being drug development and software coding.
To what extent do you agree or disagree with the following statements related to artificial intelligence? The respondents were allowed to select one option for each statement.
65% of CEOs agree that AI is a force for good, driving business efficiency and therefore creating positive outcomes for all.
CEOs clearly see the huge upside opportunities of AI. They recognize its potential to drive productivity and positive outcomes for all stakeholders.
- Two-thirds (65%) agree or somewhat agree that AI is a force for good — driving business efficiency and therefore creating positive outcomes for society, such as innovations in health care treatments.
- A similar cohort believes the impact of AI replacing humans in the workforce will be counterbalanced by the new roles and career opportunities that the technology creates — they reject fears that AI could negatively impact workforce numbers.
But CEOs are simultaneously concerned about any unintended consequences of AI …
… — reflecting a broader confluence of views in media, society and contemporary culture where the exciting potential of artificial intelligence is often contrasted with the tropes of dystopian science fiction.
65% of CEOs say more work is needed to address the social, ethical and criminal risks in the new AI-fueled future.
- Almost two-thirds (65%) of CEOs say more work is needed to address the social, ethical and criminal risks inherent in the new AI-fueled future — from cyber attacks to disinformation and deepfakes.
- A similar number also worry that not enough is being done to manage the significant implications and unintended consequences for both the business community and society more broadly.
Government policymakers and regulators have a significant role to play in establishing rules and guardrails for how generative AI is used.
And CEOs also see a role for the business community to engage much more on the ethical implications of AI and the impact of its use on key areas of our lives, such as privacy.
They also highlight AI’s potential to disrupt the entire digital environment that exists today, especially with regard to privacy and online security.
Despite these concerns, CEOs are devising investment strategies to maximize the current and future benefits that AI can bring to their businesses.
Capital allocation is being focused on these new technologies.
With nearly a half of CEOs already fully integrating AI-driven product or service changes into their capital allocation process and actively investing in AI-driven innovation.
Which of the following best describes your current capital allocation approach to artificial intelligence? The respondents were allowed to select one option only
