Survey AI adoption shows differences between C-level management: CFOs lead in implementation, CIO sees greatest benefits
More than half the of Dutch leaders welcome AI and ML, despite varying adoption rates, data silos and bureaucracy as main obstacles
Workday, leader in enterprise cloud applications for finance and human resources, publishes new research on the impact of artificial intelligence (AI) and machine learning (ML) on the future of work. The report, ‘Preparing to Power Up: EMEA Leads the Way to an AI-Driven Future’ shows that leaders know their organizations can benefit from AI and ML, but C-level management's views on these technologies vary by job group. It also points to data silos and bureaucracy as the biggest barriers to AI and ML adoption.
Key findings include:
Optimism and strong willingness to invest due to better regulation
56 percent of leaders in the Netherlands welcome the opportunities AI and ML present for their organizations. In America, the figure is 50 percent. In Europe, Austria (62 percent) and the United Kingdom (60 percent) lead the way as the most enthusiastic users of AI and ML, while Norway (40 percent), Denmark (44 percent) and Germany (45 percent) are the least enthusiastic. Furthermore, 44 percent of EMEA companies have made changes to ensure their businesses are agile enough to reallocate resources quickly and at scale.
The survey also found that leaders in EMEA are generally more confident in AI and ML, compared with leaders in the U.S. Following the introduction of the AVG, the EU is in the process of proposing a new legal framework for AI: the EU AI Act. This is aimed at strengthening governance around data quality, transparency and human oversight, and encouraging greater trust in the technology.
The enthusiasm for AI and ML among EMEA leaders, supported by regulatory advances, is contributing to the greater willingness to invest. Northern European organizations are leading the way in AI and ML investment, while Southern European organizations are taking a more conservative investment approach. Currently, EMEA organizations invest an average of 17 percent of their annual budget in AI and ML, and 42 percent invest more than 20 percent.
Adoption of AI and ML varies by function
Although enthusiasm is high, different functions have different views on AI and ML, as well as on the implementation of these technologies.
CEOs favor AI and ML - A significant 53 percent of EMEA CEOs are enthusiastic about using these technologies in their organizations. However, they are concerned about the potential flaws that AI and ML could introduce.
Finance leads the way in implementation - Finance teams are the most progressive in implementing these technologies in their day-to-day work: 19 percent of CFOs say their teams are scaling up or maturing AI, which is nearly three times the level of finance teams in the Americas (7 percent). Finance leaders in EMEA are using AI/ML to improve forecasting, budget decisions and scenario planning, and to support strategic planning for all business units.
HR lags behind in adoption - HR shows the slowest adoption of AI: 44 percent of HR leaders in EMEA are excited about the potential, but 49 percent have yet to begin adopting AI and ML within their teams.
IT leaders most believe (51 percent) that AI and ML will make it easier for their function to support other business teams or enable them to deliver more strategic value. This indicates a positive cultural shift toward AI and ML within EMEA IT teams.
Data silos and bureaucracy hold organizations back
In addition to varying adoption rates, the development of AI and ML technologies is also affected by other challenges. The survey found that data silos and bureaucracy keep business leaders from fully embracing and adopting AI and ML. 60 percent of EMEA organizations say their data is stored in silos, making it difficult for them to access actionable insights in real time. Moreover, only a third (34 percent) of Dutch organizations have made good progress in eliminating bureaucratic processes that slow decision making. In Belgium and the UK, the figure is 36 percent; in Germany, it is 39 percent.
For many organizations, greater use of AI and ML requires a significant culture change, but to make it happen top management must be involved. Yet 37 percent of EMEA leaders believe their organization's management has not yet realized how crucial AI and ML will be, the survey found. The Netherlands is not far from that at 37 percent.
"AI and machine learning cannot be stand-alone tools," said Maryjo Charbonnier, Chief Human Resources Officer of Kyndryl. "They must be integrated into business strategy, integrated into culture strategy and then integrated into HR strategy."
Now is the time to take action
EMEA executives are excited about the potential of AI and ML to improve their operations, especially when used to improve HR or financial processes. By implementing advanced solutions powered by AI and ML, organisations can significantly improve their business results and drive success.
"To maximise the business value of AI and ML, organisations should start by aligning expectations with reality and prioritise business problem-solving initiatives," advises Jens Löhmar, CTO continental and DACH, Workday. "Make sure the organisation is equipped to implement these technologies effectively by identifying and addressing capability gaps. Choose AI and ML capabilities that align with business strategy and needs, and create a clear roadmap with defined goals and metrics. Constantly evaluate its effectiveness and adapt it to the changing needs of the organisation and the changing business landscape."
For additional information:
- Register for Workday Rising EMEA, from 14 to 16 November, to learn more about how Workday is helping its customers deal with these challenges.
- Download the report here.
About the research 'Preparing to Power Up: EMEA Leads the Way to an AI-Driven Future':
The data in this report is based on findings from two surveys. The first is a global survey of 2,355 senior business executives conducted in May and June 2023. Of the 2,355 respondents in the global survey, 860 are based in EMEA - in the UK, France and Germany. In addition, Workday launched a second, shorter survey of 550 respondents in the EMEA region, also conducted in May and June 2023. In addition to the UK, France and Germany, respondents to these questions came from Austria, the Belux and Denmark, Finland, Italy, Luxembourg, the Netherlands, Norway, South Africa, Spain, Switzerland and Sweden. Together, these two surveys comprised 1,410 respondents across EMEA.
About Workday
Workday is a leading provider of enterprise cloud applications for finance and human resources, helping customers adapt and succeed in a rapidly changing world. Workday applications for financial management, human resources, planning, cost management and analytics are developed with artificial intelligence and machine learning at their core. In doing so, Workday helps organisations around the world embrace the future of work. Workday is used worldwide by more than 10,000 organisations across industries - from mid-sized companies to more than 50 per cent of Fortune 500 companies. For more information, visit www.workday.com.
