EMEA companies lead the way in interest in AI and ML

Reliable regulatory framework promotes optimism and willingness to invest

Fifty-two percent of EMEA executives welcome the benefits of AI and ML to their organizations, ahead of their peers in the Americas (50 %) and Asia Pacific (46 %). Austria (62 %) the UK (60 %) and Switzerland (58 %) are leading the way in AI and ML adoption, while Norway (40 %), Denmark (44 %) and Germany (45 %) show less enthusiasm. 44 percent of EMEA companies have already taken steps to become more agile and allocate resources faster and more in line with demand.

The Workday survey also shows that EMEA business leaders are generally more confident in artificial intelligence and machine learning than executives in other regions. Following the introduction of the General Data Protection Regulation (GDPR), the European Union is currently planning an AI Act that will set the legal framework for the use of artificial intelligence. The establishment of AI governance is intended to ensure data quality, transparency as well as human control in order to achieve broader acceptance of the new technologies.

"The EU AI law is a milestone and remarkable progress towards the responsible use and development of AI," commented Jens-Henrik Jeppesen, Senior Director of Public Policy at Workday. "At Workday, we've been building AI and ML capabilities for nearly a decade. We know that these technologies need to gain people's trust in order to reach their full potential. Smart, risk-based and proportionate regulation can help build that trust and avert the risk of potential harm, while enabling innovation. We hope the new EU AI Act will do just that when it comes into force, encouraging responsible use of these technologies by businesses."

The combination of clear rules and widespread enthusiasm for AI and ML among EMEA leaders is leading to a noticeably higher willingness to invest. Northern European companies are ahead of the game here, while companies in Southern Europe prefer a more conservative investment approach.

There are differences in AI/ML assessment and implementation at management levels

Despite all the openness, different leadership functions have a different view of AI and ML, of their implementation.

CEOs are generally in favor of AI and ML: 53 percent of EMEA CEOs want to introduce corresponding technologies in their company. Their enthusiasm is dampened by concerns about possible wrong decisions that AI and ML systems could make.

Finance is leading by example: AI and ML are already most widespread here. 19 percent of CFOs in EMEA say their teams are increasingly or extensively using AI solutions. In the Americas, only 7 percent of CFOs express a similarly positive view. CFOs in EMEA are using artificial intelligence and machine learning for forecasting, budget decisions and scenario planning, as well as to support strategic planning in various business areas.

HR still has some catching up to do: While 44 percent of EMEA HR managers are open to the potential of AI and ML, 49 percent have not yet introduced corresponding technologies in their teams.

IT managers are 51 percent convinced that they can use AI and ML solutions to better support other teams or add more strategic value.

Data silos and bureaucracy are the biggest obstacles 

In addition to the varying pace of implementation, AI and ML technologies are also being held back by other factors. Lack of data management and excessive bureaucracy are the main reasons why business leaders are still hesitant about AI and ML adoption. Sixty percent of EMEA companies complain about data silos that make it difficult for them to gain relevant, real-time insights. In the DACH region, only 22 percent of companies report good progress in reducing bureaucratic barriers that slow down decision-making processes, compared to 39 percent in Germany and 40 percent in Austria.

In many companies, a significant cultural shift needs to take place in order to deploy AI and ML on a larger scale. 37 percent of EMEA leaders believe their senior management has not yet realized the importance of AI and ML.

The time for hesitation is over

EMEA executives recognize how much their companies can benefit from AI and ML, especially in HR and finance. Forward-looking AI and ML-based solutions offer them the chance to improve their performance and be more successful overall.

"If you want to derive maximum business value from AI and ML, you should first align your expectations with reality and prioritize initiatives aimed at solving specific problems," advises Jens Löhmar, CTO Continental & DACH, Workday. "Make sure your organization can effectively deploy the technologies in question by identifying and closing competency gaps. Choose AI and ML options that match your business strategies and requirements, and define a clear roadmap with clear goals and metrics. Continuously monitor the effectiveness of the measures and adjust them as your business needs or their business environment changes."

Source: www.workday.com