By Vishy Narayanan and Scott McLiver
“Does the world need another article on GenAI?” This is the prompt we entered into ChatGPT, Gemini (formerly Bard) and our own large language model, ChatPwC. In summary, they agreed that to help readers avoid information fatigue, content needs to be well-researched, engaging, and offer something novel. Thankfully, our recent Global CEO Survey — Asia Pacific gives us extraordinary new insight into how GenAI is genuinely perceived by business leaders.
Several questions and doubts were revealed — many surprising — giving us the opportunity to respond to real-world thoughts and issues. Crystal-balling on where GenAI may take us is not our concern here. Speaking to the challenges that business leaders are finding, why we think this may be, how we’ve chosen to approach GenAI and how we can tangibly help, is.
This year's survey, the 27th by PwC, revealed a gap between intention and adoption of GenAI. On the one hand, 65% of Asia Pacific CEOs anticipate that GenAI will significantly enhance the efficiency of both their employees and their own time. 76% also anticipate the need for their workforce to acquire new skills in response to GenAI advancement (surpassing global CEOs by 7%). Despite this awareness, 41% of CEOs admit not adopting GenAI across their companies in the past 12 months. Why?
1. The unprecedented rate of change with GenAI: it’s hard to board a moving train
GenAI has seen extraordinary adoption — the fastest documented adoption of any new technology in history. One reason may be that because the interface of GenAI is natural language, it’s easily accessible to people. Little education or upskilling is required to use it, unlike with other new technologies, leading to broad, global acceptance. However, it is still consumer-led. Enterprise-grade technology isn’t yet broadly available, which has led to a lull in organisational GenAI adoption.
2. A need for more practical understanding
There’s a gap between knowing GenAI's potential and understanding its specific applications within an organisation. As one client recently put it, “Yes, but what does it actually mean for my business?” This isn't a surprise; it’s a new technology, after all, but it’s a gap that needs to be quickly bridged.
3. Asia Pacific is yet to have uniform availability of technology across the region
Technology is playing catch-up with the pace of the demand. Access to Microsoft Azure OpenAI for example (which provides REST API access to OpenAI's powerful language models) is currently limited due to high demand. There are limits and quotas by country and region. In countries that are able to use OpenAI’s ChatGPT, the data is still only based in the US. However, Microsoft and other hyperscalers are working quickly to improve availability. Once these improvements are in place, we believe there will be the opportunity for Asia Pacific to leapfrog, as it did with 3G to 5G, and gain a competitive advantage.
4. The appeal of GenAI varies, favouring territories with higher productivity and growth opportunities
The CEO Survey revealed the trailblazers in GenAI. Australia leads in GenAI adoption with a rate of 63%, followed by Japan (50%), India and New Zealand (both 39%). GenAI can enhance productivity, streamline processes and contribute to economic growth. This makes it particularly appealing to territories with higher productivity and growth opportunities, with the possibility of GenAI integration into multiple sectors ranging from healthcare and finance to manufacturing and logistics.
5. Risk, compliance and ethical concerns
Half of the CEOs surveyed were concerned about the rising cybersecurity risk (49%), though to a lesser extent than their global counterparts (64%), and 44% expressed concern about GenAI spreading misinformation, compared to global CEOs at 52%. It’s clear that business leaders in Asia Pacific are wary about GenAI, but this also reveals possible gaps in awareness that merit attention. With the launch of new GenAI tools like SORA — OpenAI's text-to-video generator revealed in February 2024 — concerns are likely to increase. Ethical and societal implications commonly listed include fraud, propaganda, and misinformation. Although many organisations recognise the need for Responsible AI to help combat risks, they’re at different stages of the journey.
Will the promise of GenAI outstrip reality? It’s clear from our conversations with other technology leaders that many of us consider this to be the first technology that will actually keep up with the pace of the hype.
So, how can business leaders lead from the front foot? Here are several actionable steps you can take:
When GenAI first burst onto the scene, as a professional services firm, we had an inkling of its possible power, but its global adoption and speed were startling. But it’s the ability to pivot, adapt and evolve that makes an agile organisation.
We convened a group at both a network and regional level, with leadership leaning-in, right from the start. We recognised the need to go at this opportunity at a different speed and scale than was customary. We're committed to investing $1 billion globally to expand and scale our AI capabilities, including the services, training and technology we offer clients, to apply AI safely and responsibly, at scale.
It’s this focus that saw us on the stage at the World Economic Forum in Davos last year, to create an assessment tool for clients and develop our own large language model ChatPwC.
ChatPwC was launched firmwide as a pilot in February 2024. It is our safer, secure alternative to public GenAI tools, aligned to our risk appetite and optimised for use in PwC. The platform contains safeguards that help us meet our policy obligations and market and client expectations for applying AI safely and responsibly. It also contains features that extend beyond public-facing AI tools, such as the ability to interact with documents, images and specialised knowledge bases. It's early days, but it will allow us to spend more time on high-value activities that require judgement, creativity and expertise.
Although it’s ChatPwC that has hit the headlines recently, there isn’t any one Generative AI solution or strategy that best meets all of our people's and clients’ needs. We work with several strategic partners - including Microsoft, OpenAI and Harvey - to bring the best enterprise-grade Generative AI platforms and foundation models into the firm, and we augment them with additional PwC-specific capabilities, experience and methodology.
The leaps and gains achieved by exercising the full power of GenAI will bring extraordinary change and innovations beyond our imagination today. And those that are early adopters will reap the reward. That makes overcoming inertia on GenAI using early-day AI strategies like the ones we’ve described, even more important.
Try out our AI Maturity Assessment Tool and receive a tailored report with recommendations for your organisation.
Our survey suggests that the vast majority of CEOs in the region are already taking some steps toward reinvention. Yet they are still not confident that their companies would survive more than a decade on their current path.