Harnessing the Benefits of AI While Managing Operational and Reputational Risks
Artificial Intelligence (AI) is a pivotal factor in the ongoing evolution of technology across all industries. Its prominent position on agendas underscores the substantial advantages that AI technologies offer to businesses, consumers, talent and investors.
AI could contribute up to $15.7 trillion to the global economy in 2030, representing up to a 26% boost in GDP for local economies.1 The heightened commercial interest with AI is evident in media attention and is mentioned across 60% of media coverage.2 Given the abundance of available information, it’s crucial for your organisation to have a straightforward story about its AI strategy and how it will impact your key stakeholders – including customers, employees, investors and the wider financial ecosystem.
Using digital insights to navigate through the hype of AI and reduce stakeholder fears
In a rapidly evolving business landscape, it’s crucial to discern the reality of AI capabilities from the noise of hype and fear. Industries are experiencing transformative changes through AI, with automation streamlining processes and predictive analytics revolutionising decision-making. Moreover, AI is fostering innovation by enabling personalised customer experiences and unlocking new avenues for growth and efficiency.
By partnering with us, you can confidently navigate through this landscape, leveraging AI to drive tangible value for your organisation while alleviating stakeholder concerns. This document looks at key communications considerations to help you unlock the transformative potential of AI in your business.
Charles Palmer- Global Head of TMT
Using Data Insights To Establish Your Whitespace
When building their AI story, there is a risk that companies leap to talking about what they do without first addressing the most important point of all. Why are we investing in AI and why should our audiences care? At the start of the story, FTI Consulting will undertake analysis to identify the themes your audience cares about and establish the white space for you to differentiate your story. The insight from this stage underpins the storytelling process.
Establishing white space through data analysis (example)
Enabling us to identify the foundations of your AI story
Personalising Products & Services
Ensuring Safe & Secure Systems
Building Open Banking Ecosystems
Applying Emerging Technologies: AI
Empowering Climate Adaptation Through Technology
Managing Scarce Resources with Clients
Message Development and Narrative Build
Effective articulation of a compelling and distinct AI narrative is crucial for diverse stakeholders including customers, employees, investors, policymakers and regulatory bodies. A clear AI narrative serves as a communication bridge, elucidating the organisation’s approach to AI and building trust through transparent practices.
For stakeholders concerned with risk management, a well-defined AI narrative is invaluable. It facilitates the proactive management of potential risks associated with technology implementation and issues related to data security, privacy, and ethical considerations. A transparent approach to AI-embedded processes also ensures better alignment with compliance, regulations and industry standards, reducing risks and protecting the institution’s reputation.
Whether it’s customers seeking assurance or employees looking for a positive and innovative work environment, the narrative underscores the institution’s commitment to leveraging AI for enhanced services and operational efficiency.
In a competitive talent market, attracting and retaining skilled professionals is a shared objective. An inclusive AI narrative also serves as a beacon for diverse talents, aligning with the organisation’s values and progressive approach to technology. It contributes to a positive workplace culture that resonates with employees and reinforces the institution’s competitive edge.
FTI Consulting uses AI-embedded tools to deliver data driven insights to identify white spaces where clients can create an authoritative voice to shape industry topics. Clarity in telling your story to stakeholders will help solidify your technology investments, partnerships, and long-term goals.
Building Trust and Transparency
75% of corporate stakeholders expect leaders to speak out on societal issues
Media relations and Executive profiling
Utilising leaders is a must. Leaders are a critical platform to ensure your AI story cuts through to stakeholders. 75% of corporate stakeholders expect leaders to speak out on societal issues, with AI being at the forefront due to its ability to transform society. Getting your leadership team activated is crucial for putting your best foot forward.3
Building trust in your AI narrative will be critical. Both businesses and customers express concerns about AI. Businesses may be concerned about the ethical use of AI, potential job displacement, and the need for skilled AI talent. Customers may worry about privacy, data security, and the transparency of AI decision-making. Addressing these concerns is essential for the responsible development, adoption and acceptance of AI technologies.
Trust drives revenue-generating behaviours. Media engagement is an important channel for organisations as it provides a platform to shape public perception, build brand credibility and communicate key messages to a broad audience. Positive media coverage can also help to enhance trust, attract investors and contribute to longterm success by establishing a favourable reputation in the industry.
Attracting, Retaining and Developing AI Talent
As AI advances and organisations grapple with its impact on their business models, it’s crucial for leaders to empower their teams with the necessary skills and mindsets needed to implement AI effectively. This involves identifying skill gaps, recruiting specialised talent, and developing capabilities of the existing workforce to embrace AI.
Our research in today’s talent market highlights that while competitive pay and career prospects are important to potential hires, they’re also assessing how organisations address the ethical aspects of AI. To create an environment where talent can thrive in the changing AI landscape, organisations must foster a culture of continuous learning, encourage collaboration across diverse teams, and champion inclusivity to embrace different perspectives.
Our People and Transformation experts can support you in answering the following questions:
- What are the capabilities required for your organisation to be prepared for the AI revolution?
- What are the current gaps in capabilities and how do you bridge them?
- How do you change the ‘job loss narrative’ to upskilling and career development opportunities?
- How are you developing your Employee Value Proposition to attract new and diverse talent in AI based roles?
- What is the current culture of your organisation and how does it need to evolve to drive successful implementation of AI initiatives?
- What transformation do the leaders need to undertake to drive ethical AI strategies?
About 80-85% of AI projects fail to deliver expected business value due to lack of skills, poor data quality and integration with existing workflows.
Source: Gartner. AI Strategy for Business, 2023
Understanding and influencing the AI Regulatory and Policy Landscape
The global AI policy landscape is shifting as governments and international bodies consider how best to regulate AI. Policymakers around the world are seeking to design effective policies to harness the potential economic and social opportunities of AI while protecting citizens’ rights as consumers and employees. Businesses operating and impacted by AI must be ready to engage in this policymaking process in their key markets to ensure that outcomes do not inhibit their commercial ambitions.
As well as creating an effective regime for private sector uses of AI, governments are increasingly seeking opportunities to use AI technologies to improve public sector outcomes. This process is opening new opportunities for innovative businesses who are able to
disrupt traditional approaches to public procurement and investment.
With more than 2 billion people around the world going to the polls in 2024, this is a crucial time to engage and shape the policymaking agenda through strategic political engagement.
For example, as the UK, US and EU are implementing different AI regulatory regimes, it is important to understand how each of these regimes will impact firms operating across borders and build a consistent position across jurisdictions.
How can we help?
In the shifting AI policy landscape, it is increasingly important to complement communications activity with public policy and government relations efforts to shape and influence a positive regulatory environment.
We can integrate your communications strategy with your government relations priorities to mitigate reputation and regulatory risk as well as spot procurement opportunities and create avenues to shape the direction of travel.
With dedicated public affairs teams across FTI Consulting’s global network, we can deliver on-the ground expertise and internationally coordinated public affairs strategies including:
- Political, legislative and regulatory intelligence gathering
- Integrated public affairs and communications strategy
- Political engagement plan and set-piece events
- Stakeholder, policy and opportunity mapping
- Collateral development
Political, legislative and regulatory intelligence gathering
Integrated public affairs and communications strategy
Political engagement plan and set-piece events
Stakeholder, policy and opportunity mapping
Collateral development
Communicating to the Investor Community
Why is this important?
77% of investors say company reporting on the use of new and emerging technologies such as AI is important or very important to their investment analysis.
Source: PwC Global Investor Survey Nov 2023
Investor Relations (IR) teams should consider several key factors when it comes to AI:
Narrative and equity story
Education and Communication: Educate investors about AI technology and its impact on the company’s operations, strategy and financial performance. Foster open communication channels to address investor questions and concerns regarding AI.
Long-Term Strategy: Articulate a company’s long-term strategy for leveraging AI to drive growth, innovation and competitive advantage. Illustrate how AI aligns with a company’s vision and goals to attract long-term investor support.
Responsible Business
- Transparency: Ensure transparency about how AI is used, particularly in financial reporting and decision-making processes. Investors need to understand the role of AI in generating insights and forecasts to build trust.
- Data Security and Privacy: Address concerns related to data security and privacy from AI. Investors may be wary of potential breaches or misuse of sensitive data, so robust security measures are essential.
- Ethical Use: Emphasise the ethical use of AI to maintain investor confidence. Highlight guidelines and practices governing AI development and deployment to demonstrate corporate responsibility.
- Regulatory Compliance: Stay updated on regulatory requirements governing AI. Ensure compliance with relevant regulations to mitigate regulatory risks and maintain investor trust.
- Governance and ESG: Understand, assess and communicate AI’s opportunities, risks and impacts to relevant stakeholders. Prepare and report risk mitigation strategies and governance frameworks including a robust AI Policy and efficient senior leadership oversight.
- Risk Management: Assess and communicate any potential risks associated with AI implementation, such as algorithmic bias, model interpretability, and system failures. Provide investors with insights into risk management strategies and contingency plans.
Measurement
Performance Monitoring: Establish metrics and benchmarks to monitor the performance of AI systems over time. Regularly report on AI-related initiatives and outcomes to investors, highlighting achievements and areas for improvement.
What can we offer?
FTI Consulting can help IR teams address these considerations and communicate AI’s value proposition to investors.
Outcomes
Aligning your tech-forward strategy with your communications
AI is poised to bring significant changes to all industries. It is expected to enhance operational efficiency through automation, provide advanced analytics for better decision-making and improve customer experiences with personalised services. Technology will play a crucial role in fraud detection, risk management and regulatory compliance. Additionally, AI-driven algorithms will optimise trading strategies, improve customer experience and create career opportunities with new roles emerging. Despite these benefits, ethical considerations and the responsible use of AI remain important factors to navigate. Organisations will increasingly look to develop a cohesive technology and people strategy which aligns closely with their business strategy, while attracting the right talent and partnerships, and staying on top of regulatory requirements. In the AI era, telling an authentic and transparent story will play an essential role in your communications approach and in achieving your business priorities.
For further information or an exploratory conversation please contact [email protected].
Sources:
1 https://www.pwc.com/gx/en/issues/data-and-analytics/publications/artificial-intelligence-study.html
3 https://www.pwc.com/gx/en/issues/data-and-analytics/publications/artificial-intelligencestudy.html
The views expressed in this article are those of the author(s) and not necessarily the views of FTI Consulting, its management, its subsidiaries, its affiliates, or its other professionals.
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