The unvarnished opinion of German CEOs about GenAI

Contribution by Karl-Heinz Land:

My position on digitalization is well known, but how do other German CEOs position themselves on the topic of generative AI?

The unvarnished opinion of German CEOs about GenAI

In times of uncertainty and change, the art of leadership is not just to react, but to proactively shape. – With this in mind, I would like to shed some light on the current situation and future prospects of German companies.

In the face of global challenges, from geopolitical tensions to ecological and economic crises, the German economy is at a turning point. However, as the latest CEO Outlook from KPMG shows, there is reason for optimism and the ability to act.

The figures speak for themselves: interestingly, 80% of the CEOs of German companies surveyed are optimistic about global economic development. Nevertheless, a certain skepticism is evident, especially when looking at the company’s own development. Here we see a drop in confidence of ten percentage points compared to the previous year, reflecting the increasing complexity and unpredictability of the business environment.

What is the answer to these challenges? Digitalization and, in particular, the integration of artificial intelligence and GenAI. Despite economic uncertainties, 75% of them see generative AI as an essential investment. The company’s managers are confident that this technology will help them:

  • An increase in profitability (26%),
  • Increase in efficiency and productivity (21%),
  • Improved opportunities for growth in new products and markets (15%).

However, patience is required: 43% of respondents expect it to take three to five years for investments in AI to pay off. Almost 20% even expect a payback period of more than five years.

The main problems identified by CEOs when introducing generative AI are the high implementation costs (65%), socio-ethical challenges (50%), technical skills and the lack of appropriate regulation (49% each). The lack of current regulations and specific guidelines for the use of Generative AI is seen by many managers as a major obstacle to the success of their projects.

Another important aspect is the topic of environment, social and governance (ESG). Many CEOs recognize that ESG initiatives can add value, but challenges such as complexity in supply chains and a lack of internal expertise are also evident.

But what do these findings mean for companies and their managers? It’s not just about technological upgrades. Rather, the focus is on empowering employees to use the new technologies effectively. A collaborative leadership style and a deep understanding of ESG requirements and implications are becoming increasingly important.

At neuland AI, we recognize the challenges and opportunities that arise from artificial intelligence and GenAI in particular. We are your navigation partner in the complex landscape of artificial intelligence and support you in fully exploiting the potential of GenAI and positioning your company sustainably within the framework of ESG initiatives.

Contact us and find out how we can help you master the challenges of digitalization and make your company fit for the future. Are you ready to set the course for the future? We are ready to take this decisive step with you.