The arrival of ChatGPT and its many competitors pushed generative AI into the mainstream discord, with businesses across all sectors and sizes striving to understand how it could be best implemented within their organisations.

Pitcher Partners’ Business Radar report found more than a third of respondents had already started using generative AI in their business with another four in 10 preparing to do so.

Pitcher Partners Melbourne partner Gavin Debono said mid-market business owners were excited by the prospect of what generative AI could provide for their firms.

“The enthusiasm we are seeing indicates mid-market owners and decision makers are dialled in to new and disruptive technology and are pivoting operations to make better use of it,” said Mr Debono.

“Using GenAI (generative AI) to improve efficiency and output could soon become not just a competitive advantage, but an existential requirement.”

The enthusiasm was reflected by the optimistic outlook when it came to generative AI with 77 per cent of business leaders of the belief that it would have an overall positive impact on their business.

The majority of respondents said the tool would lead to positive applications for businesses in terms of new products and services, 84 per cent, and also free up time so owners and managers could focus on business strategy, 79 per cent.

The report also found respondents believed generative AI would help create new business opportunities, 76 per cent, and also help businesses better adapt to the market, 76 per cent.

However, worries regarding the widespread adoption of generative AI were found as 60 per cent of respondents said the adoption of AI would mean additional complexity for management while 82 per cent said it would create a need to upskill their workforce.

Over a third of respondents said they did not fully trust the data security and accuracy of generative AI tools and approximately one in five (19 per cent) said putting safeguards in place was their greatest barrier to adopting AI.

Mr Debono said the survey found an alarmingly low level of concern when it came to risk and safeguards around generative AI with 33 per cent not worried about risk, 16 per cent stating they did not have any risk and 46 per cent said they had not implemented any safeguards around their enactment of the tool.

“These statistics are worrying, especially when you consider the probability that most businesses will have staff already using GenAI on their own initiative,” said Mr Debono.

“And that’s a problem - confidential customer or business information could be entered into tools, making it available in the public domain.”

“Even businesses that aren’t or won’t ever use GenAI need to address and mitigate the risks it poses.”