If AI is on your mind, you are not alone. Business leaders say repercussions of using AI technology incorrectly keeps them up at night, with two-thirds of executives reporting that their key concern is financial consequences, according to research from G-P.

While AI offers substantial benefits for business operations, harnessing its full potential requires a strategic approach that encompasses the right people, processes, and risk management.

So, what steps should business leaders take to address their AI concerns and maintain a competitive edge on a global scale?

Evaluating potential pitfalls

As with any emerging technology, it is crucial to strike a balance between harnessing the potential of AI innovation and mitigating its risks. G-P found that eight out of ten organisations have already established an AI programme and 84% plan to invest in the technology in the next twelve months. However, there is widespread uncertainty: almost all respondents (97%) express concerns about their AI plans or goals.

Executives can’t effectively address the challenges of AI without a clear understanding of its risks​. This involves focusing on immediate, apparent pitfalls while also recognising and preparing for less obvious threats.

For the majority of executives, the most significant concern is negative financial consequences of incorrect AI use. Additionally, nearly two-thirds fear the rush to implement AI applications before the necessary resources and strategies are in place. And, 47% of executives are also only comfortable with employees using company-approved AI tools.

With this, only 2% of executives believe that their company is sufficiently staffed to implement and monitor AI applications effectively – a concerning statistic considering the success of an AI programme can hinge on having the right personnel. Despite this, 60% of executives state that their company invests more money in implementing and further developing AI technologies than in recruiting and retaining employees.

Bridging AI and workforce talent

Integrating AI technology into business operations has the potential to transform the talent landscape.

Nearly two-thirds (65%) of businesses view AI as crucial for both operating and staying competitive globally, with 84% of companies planning to increase their investment in AI within the next year. This is significant because adopting the right AI technology can help companies attract the right talent and build a workforce ready to embrace the opportunities that AI offers.

As companies reassess the roles and skill sets needed for their business in the context of their AI plans and goals, it would be beneficial for them to develop strategies where AI technology complements and supports human work, making it more efficient and scalable rather than replacing it. Case in point – 34% of employees are hesitant to use AI due to concern their manager might place less value on their work, and 27% due to a lack of proper training resources provided by their company, emphasising the importance of investing in training alongside AI technologies.

AI can be leveraged for both technical and non-technical roles and can even assist in building and managing teams. AI-powered global hiring and onboarding products, such as G-P’s, help HR and business leaders manage processes such as generating the offer more efficiently, executing employment agreements, and supporting onboarding and benefits setup.

When managing teams, AI can also help throughout the employee lifecycle. AI can be used to manage everything from employment changes and benefits updates to helping manage asynchronous work across different time zones.

G-P’s 2024 ‘World at Work’ report found that 53% of executives that currently hire internationally trust employees to use any AI tools to make their work more efficient, compared to 36% of executives hiring only domestically – highlighting how a global approach to hiring can drive a more progressive use of AI in the workforce.

Empowering business growth through AI

Organisations shouldn't approach AI with a one-size-fits-all mentality. Instead, they need a clear strategy to fully benefit from the technology.

For companies looking to grow and scale into new markets, AI can be instrumental in providing insights and helping inform decisions. This not only helps businesses comply with local labour laws and mitigate in-country risks but also allows them to tailor their products and services to meet diverse needs effectively.

Ensuring HR compliance is complex as the laws and best practices are ever-changing. G-P Gia, the world’s first AI-based global HR compliance advisor, harnesses the expertise of G-P's hundreds of HR, Tax, and Legal professionals. It has trained its patent pending generative AI technology to provide information, advice and solutions in 50+ countries and 50 U.S. states that is always up-to-date, accurate and reliable. It ensures compliance, mitigates risks and simplifies HR processes.

The potential of AI is great

As AI reshapes the business landscape, it’s essential for leaders to approach it with both ambition and caution. The potential rewards are immense, but business leaders must understand the broader spectrum of risks. By dedicating resources to talent and training, developing a clear, strategic approach, and investing in trusted AI, companies can better mitigate potential pitfalls and leverage AI to its full potential.

Ultimately, the future of AI isn’t tech alone, and organisations must think of the transformational elements they need to successfully integrate AI while making the most of the human works. The time to act is now, embracing AI with a clear vision and strategy leads to greater growth and success in an increasingly competitive world.

Nat Natarajan is Chief Product and Strategy Officer at G-P