Navigating AI Adoption with Caution

There’s no question that companies are realizing solid returns on their artificial intelligence investments. A recent IDC study¹ commissioned by Microsoft found that companies get back an average of $3.50 for every dollar they spend on AI.

In a separate study², 84% of business leaders reported that AI will significantly impact operations soon—if it hasn’t already. And it is no wonder: AI promises to revolutionize everything from back-office business functions to innovations that drive new products and better customer experiences.

Yet, despite their optimism and undeniable gains, organizations are still held back by risk management concerns. For example, 28% of global business leaders³ are worried about data or intellectual property loss due to improper AI use. Concerns also extend to the regulatory risks posed by AI.

AI-specific regulations are still in their early stages. The first AI regulation was enacted by the EU only in May 2024, and the US is still without comprehensive AI regulation. Nevertheless, data privacy regulations already strictly govern the use of consumer data in AI and other applications. And the EU regulation—and proposed regulation in California—provide for the ability for consumers and others to opt out of decisions made by AI.

Highlighting the problem, most of these leaders (52%)³ also cite a lack of skilled workers as an impediment to AI deployments, making it their top concern.

Such concerns lead most business leaders (86%) to feel that their organizations are unprepared to take maximum advantage of AI—including by appropriately managing compliance. However, best practices around data security—which applies to AI and its data the same way as with other applications—new tools embedded with AI, and trusted partners can help them achieve their goals.