5
Capability building

Assessing AI readiness is crucial to identify gaps and allocate resources effectively to develop new potentials.

From challenges to opportunities: How EY and AI work hand in hand

5.

Capability building

With the rapid development of AI in mind, many decision-makers across various sectors emphasize the need to accelerate AI initiatives to gain a competitive edge, and are increasing investment accordingly. Discussion of partnerships to accelerate innovation is common, while a few are pursuing equity investments in AI specialists. However, several companies also express concerns regarding the pace and maturity of AI development, including both those investing and others taking a more cautious approach. Some warn against overinvesting in tools or use cases that could soon become obsolete.

To fully leverage the potential of AI, organizations must prioritize capability building. Assessing AI readiness is crucial to identify gaps and allocate resources effectively. Holistic capability building involves not only investing in cutting-edge technologies but also cultivating a data-driven culture and nurturing talent with expertise in AI in all its manifestations, from machine learning to large language models.

Taking a look at the current situation, employees in Switzerland (58%) are most confident about the possibilities for AI implementation in their company. In Italy, too, a majority (52%) confirm that their employer has the knowledge and the will to tackle the AI transformation. Employees in Germany (34%) and Portugal (35%), on the other hand, are more skeptical about their company’s ability to implement and leverage AI (see figure 7).

Analyzed by sector, employees in private equity (71%), financial services (66%), the energy sector (62%), and advanced manufacturing and mobility (62%) are confident of their employers’ ability to pursue the AI transformation journey.

Most employees in Switzerland (57%) expect AI to be a top investment priority in the coming year, followed by Spain (54%). Prospects for AI investment are bleaker in Germany, where only 25% of respondents expect AI to be prioritized and Austria with a mere 22%.

Respondents see new software (35%) and employee qualification (33%) as top investment priorities for their organization when it comes to AI. Interestingly, forecasting capabilities rank lowest in the list of investment priorities. That might seem surprising given the possibilities already demonstrated by AI-driven high-precision forecasting in many sectors.

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Taking a closer look at the people factor, managers in Switzerland (72%) are most confident that their people have adequate training to work effectively with AI or are ready for the transformation process ahead. This compares with 56% in Belgium, 54% in Italy, and 51% in Spain. At the other end of the scale are Austria and Germany both with 34%.

Broken down by sector, managers in advanced manufacturing (69%) are most confident that their people have adequate training to work effectively with AI or are ready for the transformation process ahead. This compares with 65% in financial services, 65% in agriculture, and 63% in private equity. Lagging well behind at only 19% is the public sector practice.

Training programs tailored to the specific needs of each region, sector, and function are essential for ensuring the successful integration of AI into business operations.

Employees are beginning to recognize the imperative of honing their AI acumen for their careers, with 44% of respondents stating that they are educating themselves in the field of AI. Revealing a concerning gender bias, our survey indicates that male employees (49%) are more likely to be brushing up on their AI skills than their female colleagues (40%).

In many instances, employees are taking the initiative and availing themselves of self-learning opportunities, be it privately, professionally, or a combination of the two. Self-education in the field of AI is most widespread in Switzerland (60%), Italy (54%), and Spain (54%). Employees in Germany are least likely to be engaged in self-education activities (37%), indicating a clear need to sensitize the workforce there as to the importance of AI skills for the future of work and their career prospects.

AI can be a powerful tool in the hands of skilled and well-trained employees, promising massive productivity gains. Companies need to adopt an active role in training and upskilling their people. Among other initiatives, strategic partnerships with academic institutions and technology providers can also facilitate knowledge exchange and accelerate innovation. By investing in AI capabilities today, organizations can position themselves as leaders in an increasingly competitive landscape.

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