How 'confused' AI rollout hurts firms and baffles staff

Here is a story making headlines in the economy: How 'confused' AI rollout hurts firms and baffles staff26 minutes ago Share Save Add as preferred on GoogleJoe FayTechnology ReporterGetty ImagesCompanies are tying AI use to potential promotionWhen AI engineer Malcolm was working at a data analysis firm, executives wanted to use generative AI to categorise the customer database into a range of personas. "Don't use AI," was his advice. A traditional machine learning model would have been much more appropriate, he argued, producing consistent, repeatable results.

And it would have been much cheaper. "They still went ahead with Gen AI," says Malcolm (we have not used his real name). What is AI and machine learning?

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That meant a process that was less accurate and much more expensive, but it also allowed the organisation to say they were embracing AI. Malcolm's experience will be familiar to staff at other companies. More bosses are embracing AI and insisting their staff use it.

In February, global consultancy Accenture reportedly told staff that promotions to top roles would require "regular adoption of AI tooling" and it would be tracking their usage of the AI platform it has developed. And in May, rival firm KPMG said it had developed a dashboard to track whether its US employees' meet a 75% usage target for its AI tools. The company says this is part of "a holistic effort… to help people move up the AI maturity curve.

"Other organisations are taking a less targeted approach to implementing AI but nevertheless expect it to transform how their workforces spend their days. Getty ImagesThe UK government is hoping AI will boost the efficiency of public servicesGovernments are also hoping to tap into some AI magic. The UK government is banking on AI to help "rewire" the state and boost efficiency across Whitehall.

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However, research by the civil servant union, the FDA, shows that while civil servants were open to the idea of using AI to improve productivity, there's doubt that management can handle the transformation. Less than a third of civil servants had been consulted on how the technology could be rolled out, the union found, meaning "change is being done to workers, not with them". FDA general secretary Dave Penman said the rollout was "inconsistent across departments which limits the productivity gains".

If organisations are quick to highlight AI adoption, says Dan Boyles, CEO of consultancy Hello AI Collective, they're not always clear on why they're adopting it and how they expect to benefit. "I was with an oil and gas company, and I sat with the C-suite, and I just went 'what's the reason for using AI? ' And none of them could agree.

"The firm's CEO cited the need to keep up with competitors, Boyles continues, while the head of sales said they wanted to make more money, and the marketing team wanted to stop using outside contractors. This sort of confusion at the top can mean AI investments fail to deliver on expectations.

Economists are analysing what the news means for the markets.