How to separate AI fact from fiction

Bank of Ireland’s head of technology Paul Swift discusses the importance of making a plan before bringing AI into a business and the impact cybersecurity is having on various sectors.

AI has become the buzzword for many sectors and has been shown to have useful applications, but many business leaders are still cautious when it comes to this technology.

In a recent EY survey, more than 60pc of Irish business leaders said they are not currently investing in AI, nor do they have an AI strategy in place. More than 30pc said they were exploring the potential of AI but also did not have an AI strategy.

This level of caution has also been shown among investors, who have grown concerned that the massive investment into AI by Big Tech is not reaping financial rewards fast enough. The shares of the ‘Magnificent Seven’ – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla – all fell earlier this year, with one concern among investors being potential issues around AI profitability.

But despite these concerns – and the potentially negative impacts of this technology – there are also various ways that AI can benefit businesses and boost productivity. Paul Swift is the head of technology for Bank of Ireland and he believes that AI companies need to do more to educate their customers about the potential of this technology.

Bank of Ireland head of technology Paul Swift.

“I think some of those companies that are developing AI need to focus on demystifying the capability and directing its benefits to help companies figure out where it fits and how they can integrate in their business,” Swift said.

Separating AI from the hype

Swift believes that AI technology has gone through a period of hype in recent years that these companies will need to overcome to ease cautions from businesses and investors.

In a recent Bank of Ireland report, Swift notes that the number of times AI has been mentioned in earnings calls has skyrocketed since the launch of ChatGPT in November 2022.

“This says more about companies ‘jumping on the AI bandwagon’ in exaggerating their progress, than necessarily having concrete propositions to bring to the market,” Swift says in the report.

Swift also notes that there has been a lot of “noise” associated with AI over the past couple of years, which may have overwhelmed businesses when it comes to figuring out how the technology can be properly utilised.

“Much of the narrative continues to focus on whether [AI] will replace humans and take their jobs,” Swift said. “In reality, AI tools will not take people’s jobs, but those companies that are using the technology, could.

“Recently we have heard from customers across different sectors looking for advice on how they can begin to integrate AI in their businesses.”

Swift suggests businesses take the time to formulate a plan around how to adopt AI and to not be intimidated by the jargon surrounding the technology. Meanwhile, various experts have discussed the potential impact AI will have on the workplace.

The constant threat of cyberattacks

Swift’s report notes changes in various areas, such as the pandemic boosting the adoption of cloud technology. But one area that appears to be growing rapidly is the cybersecurity sector, as the threat of cyberattacks remains a constant issue for businesses worldwide.

“I have a lot of customers that develop and supply cybersecurity solutions,” Swift said. “And one of my customers was saying recently that they were out the door – this is mid-summer – they’re out the door and into work for next year.

“Because of the constant threats that are posed by cybersecurity, businesses of every sector are increasing their cybersecurity posture.”

PwC has said in multiple reports that many Irish businesses are concerned by the threat of cyberattacks – and of generative AI being used to boost the effectiveness of these attacks. The company opened a Cyber Managed Services Centre in Cork earlier this year to provide cybersecurity services for both local and international markets.

But while these sectors present opportunities for businesses, Swift also noted that a major challenge is the current skills gap in the Irish market. He believes businesses that provide skills to help businesses retrain and upskill their staff face a large opportunity from the current skills environment.

“We just don’t have enough people in the areas of AI, cyber, cloud and data, and that continues to be a challenge,” Swift said.

Regulation, an opportunity and a challenge

Another key issue mentioned by Swift is the rise of new regulation, which presents a mix of positives and negatives depending on the services a business provides.

“I think certainly regulation in terms of increased vigilance is going to come around as well in the media space, and the Digital Services Act, that’s kind of going to create opportunity as well in terms of our businesses delivering solutions to combat misinformation, disinformation etc,” Swift said.

Upcoming regulation in the cybersecurity sector such as NIS2 and DORA in the EU present another opportunity for cybersecurity providers but pose a challenge for businesses too. Swift notes that businesses will need to have “a very strong and very robust data and security posture” to ensure they’re compliant with regulations.

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