Summary
Generative artificial intelligence (Gen AI) has fundamentally transformed the economy and the world of work over recent years, and there is no end in sight yet. In this 16th swissVR Monitor edition, we take a closer look at the topic and delve into the major benefits and challenges posed by the technology for businesses, the involvement of boards of directors in the context of Gen AI, and the responsibilities of board members.
About the survey
swissVR Monitor is based on a survey carried out jointly by swissVR in collaboration with Deloitte and the Lucerne University of Applied Sciences and Arts. The aim of this bi-yearly survey is to gauge Board members’ attitudes to the outlook for the economy and business as well as corporate governance issues. swissVR Monitor also aims to share with the wider public the ways in which Board members perceive their role and the current economic situation. Each edition also explores a special focus topic and conducts interviews with experts. A total of 391 Board members took part in the current edition of swissVR Monitor, providing a good overview of the views and challenges facing board members in Switzerland.
Key findings
Economic outlook
Brighter economic outlook
Board members are somewhat more optimistic than in H1 2024 in their rating of the economic, sector and business outlook over the next 12 months. 30% rate the outlook for the Swiss economy as positive, up from 18% in H1, although a majority rate it as neutral. Equal proportions rate the sector outlook as positive and as neutral. And a majority of Board members rate the outlook for their company’s business over the next 12 months as positive. Key factors driving this greater optimism include the fall in inflation, which has prompted recent interest rate decisions by the Swiss National Bank, and recovery in the global economy.
Importance of Gen AI
Generative AI increasingly important to companies
Around half of all Board members surveyed report that the importance of generative AI to their company has increased slightly over the last two years; more than a quarter report that it has increased a lot. Around four Board members in ten also believe that the technology will fundamentally transform their sector over the next one to three years. Board members in the ICT sector are particularly likely to report that AI will bring about a rapid transformation of their sector.
Benefits and risk of Gen AI
Generative AI represents a range of benefits but also risks for companies
A large majority of Swiss Board members surveyed report that their company is focusing its use of generative AI on improving efficiency and productivity within the company. Asked about the challenges and risks posed by generative AI, they most frequently cite the possibility of wrong outputs caused by false or biased data, and confidentiality and privacy risks. Most companies are taking a number of measures to manage the risks posed by generative AI, with internal audits particularly common.
Use of Gen AI
Board members make little use of AI tools for their mandate
Only around one Swiss Board member in eight reports that they always or often make use of AI tools for their Board mandate. One in three do so sometimes, leaving more than half of all Board members who rarely or never use such tools. Board members in the manufacturing and chemicals sector and in the construction and property sector rarely or never make use of AI tools.
Gen AI scope
Boards discuss generative AI, but there is scope to do more
A large majority of Swiss Boards have discussed generative AI over the last 12 months. In almost three-quarters of cases, the forum for this discussion has been the full Board, with the remaining quarter of Boards discussing it in committees or in both the full Board and committees. However, most Board members surveyed report that their Board and committees need greater expertise, lack knowledge of the major challenges and risks AI poses to their company, and do not receive regular reports from management on the use of generative AI within the company.
Rankings
| II/2024 | I/2024 | Issues | |
|---|---|---|---|
| 1 | 3 | Risk management | |
| 2 | 2 | Formulating a new corporate strategy | |
| 3 | 4 | Improving efficiency / optimising internal processes | |
| 4 | 6 | HR challenges at management level | |
| 5 | 1 | Talent (recruitment, retention, etc.) | |
| 6 | 4 | Responding to market developments / behaviour of competitors | |
| 7 | 9 | Compliance (with legislation and internal codes of conduct) | |
| 7 | - | Sustainability / corporate social responsibility | |
| 9 | 8 | Digitalisation / robotics / automation | |
| 9 | 9 | Corporate culture | |
Interviews
Member of the Board of Directors of Emch+Berger AG Bern and member of the Board of Directors of Switzerland Tourism
Thomas Steiner
“AI is transforming jobs and sectors across the economy, so Boards need to define a clear strategy for integrating it at all levels within the company. The Board needs to be able to identify the opportunities offered by AI that align with the company’s corporate goals. And because generative AI is a real game-changer, they need to adapt their company’s corporate strategy to the new reality.”
Vice-President of the Board of Metron, Member of the Board of Ethos, and Member of the Board Sparkasse Schwyz
Cornelia Diethelm
“It is important that the Board does not equate generative AI with AI more generally or with IT but recognises it as a crucial part of the puzzle in terms of digital transformation. The focus should not be on a specific technology but rather on establishing how a company can better meet the needs of its market. The fact that we have the ability to do something using generative AI does not mean that it is sensible to do so or that it is a good investment for the company.”
Chief Product Officer, LegalTech, Thomson Reuters and Member of the Board of Directors, Rightmove PLC
Kriti Sharma
"The most important human skills we need, to make the most of generative AI, are curiosity, imagination and the ability to ask good, thoughtful questions. The tech itself is very easy to use, and does the leg work for you. Board members have great expertise in asking good questions and can see round the corner, giving them a natural advantage to make the most of generative AI."
Previous board survey editions
swissVR Monitor II/2020
The Boards of Directors' perspective on COVID-19: Learning the lessons for the next crisis
swissVR Monitor II/2019
More agile but more complex: the impact of digitalisation on boards and companies
