Survey: 66% of Risk Managers Consider Generative AI a Threat to Organizations

Generative artificial intelligence (AI) has emerged as a major risk to organizations, according to a survey conducted by Gartner. The survey revealed that 66% of respondents mentioned it as a concern.

The survey, conducted in the second quarter of 2023, targeted 249 heads of corporate risk management departments. Notably, this is the first time that generative AI has entered this ranking, as highlighted by Gartner.

The top five risks for organizations, based on the frequency of mentions, are as follows:

  1. Counterparty viability (67%)
  2. Widespread availability of generative AI (66%)
  3. Financial planning uncertainty (62%)
  4. Cloud concentration of operations (62%)
  5. Trade tensions with China (56%)

In light of the development of generative AI, Gartner analysts have identified three areas that need to be closely managed in terms of corporate risk management: intellectual property, data confidentiality, and cybersecurity.

“This reflects the rapid growth in public awareness and the utilization of generative AI tools, along with the extensive possibilities of their use and, consequently, the potential risks posed by these tools,” stated Jean Xue, Research Director at Gartner Risk & Audit Practice.

In February, Apple co-founder Steve Wozniak advised caution regarding ChatGPT. He referred to the chatbot as “quite impressive” and “useful for people,” but he also highlighted a number of serious issues.

In March, over a thousand AI experts called for a six-month halt to the development of large language models. Two days later, another group of specialists criticized the initiative.

It’s worth noting that in April, Microsoft founder Bill Gates spoke out against the call to halt AI development due to fears of societal risks.

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  1. Gartner

    The Gartner survey sheds light on a growing concern within the business world: the rise of generative AI as a potential threat to organizations. The fact that 66% of risk managers are recognizing this risk emphasizes the significance of the issue. It’s interesting to see how generative AI has made its way into the top risk factors, showcasing its potential impact.

    The breakdown of these risks provides a clear picture of what’s on organizations’ minds, with counterparty viability and the widespread availability of generative AI taking the lead. This speaks volumes about the evolving landscape of technological risks.

    Gartner’s emphasis on managing intellectual property, data confidentiality, and cybersecurity in the realm of generative AI highlights the multifaceted nature of this challenge. It’s a reminder that as we embrace these advanced tools, we need to be equally prepared to address the potential risks they bring.

    The comments from Steve Wozniak and Bill Gates also reflect a broader discussion about the responsible development of AI. It’s a call to strike a balance between innovation and safeguarding against unintended consequences. All in all, this survey underscores the growing importance of proactive risk management in the face of rapid technological advancements.

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