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CEOs starting to find AI productivity gains ‘underwhelming,’ survey finds

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Investments in artificial intelligence are growing, but some research suggests CEOs may be finding that the new technology is leaving many feeling that it’s falling short.

Nearly three in four (73 per cent) executives say their return from investments on artificial intelligence software has been “underwhelming” and has fallen short of expectations, a survey by global payroll platform Globalization Partners shows.

Seven in 10 (70 per cent) said they want to start seeing productivity gains this year or they will start to scale back their investments in AI, the survey of 2,850 business executives from around the world revealed.

Most businesses are concerned that AI is not actually improving productivity. Almost nine in 10 (88 per cent) executives said they are concerned that their employees are only using AI to “perform productivity,” meaning that they are appearing busy by using bare minimum AI usage mandates.

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The use of AI has not generated any real business value, they say.

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AI usage may even be increasing the workload on some employees, rather than decreasing it, the survey found. Around seven in 10 (69 per cent) said the time their employees spend monitoring, reviewing or updating the work performed by an AI has increased.

“This suggests a hidden tax on AI adoption potentially offsetting the very efficiency gains the technology promised,” the report said.

However, despite frustrations expressed in the survey with AI, 69 per cent of U.S. HR executives say they view AI as a long-term structural shift, while 82 per cent of all executives say that AI has lowered the value they place on human employees.

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