A recent EY survey of 1,200 global CEOs reveals that while executives are investing in AI strategies, they face significant challenges in both formulating and operationalizing these plans. More than two-thirds of CEOs recognize the urgent need to act on generative AI, but many feel hindered by uncertainties in this area — partly due to the rise in firms claiming AI expertise — complicating their ability to make bold moves toward deploying the technology.
This dynamic has stymied strategic decisions concerning capital allocation, investment and transformation in an economic landscape marked by higher interest rates, increased inflation and complex geopolitical challenges. As a result, the survey reflects the lowest acquisition appetite since 2014. Only 35% of CEOs plan mergers and acquisitions in the next 12 months, a trend also influenced by geopolitical tensions.
A survey of 500 American fraud and risk professionals finds that half of companies believe their synthetic fraud prevention measures are only somewhat effective. The financial impact of this deficiency is considerable, with nearly nine in 10 companies extending credit to synthetic identities and one in five valuing average losses per incident between $50,000 and $100,000.
With the aid of AI, fraudsters are ginning up increasingly sophisticated strategies, nurturing accounts over extended periods of time for greater financial gain, for example. Consequently, FIs are struggling with legacy technologies and techniques, which are proving inadequate against these sophisticated synthetic identities. This inadequacy not only leads to financial losses but also risks reputational harm and competitive disadvantage, underscoring the need for a multilayered approach to combat AI-generated synthetic identity fraud.
KPMG International’s recent CEO Outlook reveals that only 56% of Canadian executives feel prepared for a cyberattack, with 93% expressing concern about generative AI’s ability to amplify breach vulnerabilities. This sentiment is echoed by KPMG Canada’s Private Enterprise Business Survey, where 81% of small to mid-sized business (SMB) leaders recognize generative AI as both a tool for enhanced cyber threat detection and a potential catalyst for increased attacks due to novel criminal methodologies.
A recent survey found that 62% of investors ages 45 and over were very satisfied with financial planning advice from a generative AI tool, while, somewhat paradoxically, just 38% of investors under 45 felt the same. Only 8% of younger investors and 15% of older ones felt very comfortable implementing AI advice alone. However, comfort levels nearly doubled to 21% when AI recommendations were verified by financial planners, with the proportion of those feeling very or somewhat comfortable rising to 52%.
A CNBC survey indicates that most Americans have not used ChatGPT and are not keen on using generative AI for financial advice, with only 37% of respondents expressing interest in using AI for money management. While 11% are very interested, only 4% currently use such tools. Likewise, the CFP Board survey cited above found 51% have little trust in AI financial advice, and only 31% are comfortable using AI advice without additional verification.
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