According to KPMG's new "Future of Risk" report, executives increasingly see AI adoption as a critical new capability for improving risk management.
"Effective data analytics transforms increasing amounts of raw data into actionable insights, with AI, [generative] AI and ML enhancing the ability to filter through data, spot trends and suggest solutions," the report reads. In a survey of 400 executives, 61% of respondents said they expected the level of risk for which they are responsible to increase over the next three years. Of 16 options, AI and generative AI were chosen as the most essential technologies for managing these additional responsibilities. Respondents also reported AI solutions would receive the greatest level of investment in the next three to five years.
However, KPMG stipulates that organizations must take great care to deploy these technologies in a way that engenders trust with employees and the public. "In addition to investing in these technologies, businesses must remain focused on building out systems that resonate trust with both internal users and external consumers," KPMG writes. If something goes wrong in the development or deployment of these technologies, the report warns, their trustworthiness may be questioned and the entire organization may be harmed.
"This report makes clear the need for organizations to fundamentally alter their approach to risk by embracing risk as an enabler and an asset that drives stakeholder value," Nancy Chase, Global Risk Leader at KPMG International, said in a related press release. "As our survey shows, executives are already aware of the scale of transformation required and are taking steps to address this."
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