Business leaders forecast gains from artificial intelligence
(AI) but are delaying implementation due to the ‘ambiguity trap’ created by a changing and fragmented legal and regulatory landscape.
This was one of the key findings from a survey carried out by Dentons of 450 business leaders including chief executive officers, chief operating officers, and general counsel across the UK, Ireland, and the Middle East. Around one third of the survey respondents were based in the Middle East—predominantly in the UAE and KSA.
Some 70% of respondents believe AI adoption and implementation is the key growth driver for their business, while 52% anticipate up to a fifth of their revenue will be directly attributed to AI in three years’ time.
They further believe the balance of AI versus human revenue generation will radically shift over the coming years: almost two-thirds (65%) think AI will provide more revenue than human employees by 2038, rising to 98% by 2042.
Yet, in spite of this potential, regulatory uncertainty creates a risk of inactivity, with 69% of respondents delaying important AI investment decisions due to an expected increase in regulation.
The EU is gradually implementing the world’s first comprehensive AI regulation, with other parts of the world expected to introduce new laws over the coming years.
Nearly two-thirds (63%) do not have a formal AI strategy in place, according to the survey.
Interestingly, almost three quarters (74%) believe GC and in-house legal teams are instrumental to developing an AI strategy, but only 54% involve them from the outset.
“While almost all business leaders recognise the importance of AI and believe it will transform their business, there is a significant gap between AI ambition and action, and that leaders are delaying investment due to the ambiguity trap of an uncertain legal and regulatory landscape,” said Paul Jarvis, chief executive of Dentons in the UK, Ireland, and Middle East.
Rather than adopt a ‘wait and see’ approach and delay investment, or dive in to take advantage of a perceived lack of regulation, the report suggests businesses pursue
a ‘middle path’ which treads a careful line between the application of AI in high-value use cases whilst adhering to governance principles and anticipating future regulations.
In a recent interview with Law Middle East, Core42’s general counsel Roopal Jobanputra said one of the primary challenges facing law firms today is adapting to rapid technological advancements while ensuring compliance with evolving regulations.
