Lack of clarity on AI regulation could be holding back businesses

New research has highlighted the significant impact of artificial intelligence regulation on UK businesses.

The study by Freshworks of more than 7,000 senior decision-makers and managers across 12 countries reveals the complex landscape where the potential of AI is seriously recognized, yet regulatory uncertainties hold it back.

It found two in three (65%) UK business leaders trust AI to add value to their operations, however one in three (35%) cite unclear regulations as the primary barrier to wider AI adoption.

Businesses are seeking clearer AI regulations

Freshworks found the average UK business leader claims to save an average of more than three hours per week when using AI tools, with one in 10 (11%) claiming to save more than nine hours, or more than a typical day’s work.

Despite the evident time-saving benefits, more than one-third (37%) of UK leaders have no plans to integrate AI into their workplaces, largely due to regulatory uncertainty. British respondents were found to express more concern over this issue than those in other countries surveyed.

Moreover, those who are exploring the technology anticipate a one to two year period before expecting significant business impact, highlighting a highly cautious approach.

The report also covers the ongoing concern that AI could replace human workers, with nearly half (46%) fearing that AI could replace jobs in their sector. That being said, more than two-thirds (70%) stated that they would trust AI more if human review of outputs were mandatory, highlighting its assistive role.

When it comes to use cases, content creation (43%), data analysis (39%) and brainstorming (35%) were revealed to be the most common.

Speaking about artificial intelligence’s ability to deliver “tremendous productivity gains,” Freshworks CPO Prakash Ramamurthy commented: “the AI era is firmly delivering on its promise to free up employees for higher-level work and showcasing compelling returns on AI.”