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Now decides next. Are Swiss companies ready for generative AI?
Deloitte's report, "The State of Generative AI in the Enterprise," reveals how Swiss companies are preparing for the impact of Generative AI (GenAI) on their organisations. Despite feeling more uncertain about the technology than their global peers, Swiss executives are already using it at scale in product development and investing in upskilling their workforce. How do Swiss executives believe GenAI will transform their organisations, what benefits do they hope to garner from GenAI’s tools and technology and what’s holding them back from adopting GenAI more broadly?
Swiss executives show high interest, but mixed emotions
Most Swiss CxOs (84%) are highly interested in GenAI, more than their global (74%) and European counterparts (72%). Together with technical leads, these two groups are the most interested in the potential of GenAI from those surveyed.
However, Swiss executives have mixed feelings about the technology and are less excited than their global peers when asked about the emotions leaders associate with GenAI. Whilst 61% of global executives are excited, the Swiss proportion is slightly over four in ten (42%). A higher percentage of Swiss executives are uncertain (44%) compared to their global counterparts (30%). Interestingly, over one-fifth (22%) of Swiss leaders are confused about GenAI, a view not shared by their European counterparts with nearly all countries being in the single digits for this answer, except for Italy (13%).
Despite this, over one-fifth of Swiss respondents (22%) believe that GenAI is already substantially transforming their industry with a further 26% thinking this industry transformation will happen within the next year. Most Swiss executives (44%) see this technology transforming their organisation considerably within one to three years, which mirrors the sentiment in other regions.
Swiss companies are ramping up investment and roll out
To prepare for this transformation, most Swiss leaders (86%) are increasing their investment in AI technologies somewhat or significantly in the next fiscal year. This planned investment puts Swiss respondents on par with their Italian, UK, and French counterparts, and slightly ahead of their peers in Germany and the Netherlands.
Over one-quarter (28%) of Swiss respondents are using GenAI at scale in product development, the highest proportion of any country surveyed except for Brazil (34%) and well ahead of the global average (17%). Swiss leaders are piloting the use of GenAI in marketing, sales, and supply chain more often than their global peers, but they are lagging globally when it comes to experimenting with this technology for their IT and cyber, and strategy and operations. However, respondents are using GenAI in a limited capacity for these functions.
Swiss companies are confident yet cautious in their abilities and GenAI’s benefits
Swiss leaders are cautiously confident in their organisation’s level of preparedness in adopting GenAI tools and applications. Over half (54%) of respondents feel their technology infrastructure is highly or very highly prepared compared to 37% in Germany, 25% in the UK and 40% globally. Three-quarters (74%) feel moderately or slightly prepared with the talent they have in place and their risk and governance structures (72%), compared to 65% and 62% globally. Half of the Swiss leaders feel their organisation has high or very high expertise when it comes to GenAI, higher than all their European counterparts, particularly those in France where the proportion is only 31%.
Swiss leaders highlight an increase in efficiency, productivity, cost reduction, innovation and growth improvements as the benefits of GenAI, which are like the global findings. Over half of Swiss executives (52%) hope to achieve improved efficiency and productivity through their GenAI efforts, which is less than their peers in Germany (67%) and France (62%). However, only 18% of Swiss executives believe their organisation’s productivity will significantly increase due to the widespread use of GenAI tools and applications, compared to 27% globally. Swiss respondents mostly use GenAI tools and applications for content generation, search, and knowledge management, and content summary purposes. The content most generated is text, images, and speech, however, Swiss respondents are lagging behind their global peers in using such technology for coding (44% vs 62%).
Swiss executives weigh risks and barriers to wider adoption
Despite the potential benefits of AI, Swiss executives are also aware of the risks it poses to their business model. Exactly half of the respondents believe that widespread adoption of GenAI tools and applications will somewhat threaten their company's business model with three in ten thinking it will threaten it a lot, compared to 44% and 19% of global executives respectively.
Additionally, Swiss executives cite several barriers to the wider adoption of GenAI tools and technologies. Forty two percent lack an adoption strategy, markedly more than their global counterparts (25%), this is followed by a lack of talent and skills (32%), lack of a governance structure, implementation challenges, and difficulty managing the potential risks (each 30%). Over half of Swiss executives (54%) are buying GenAI tools and applications from vendors or service providers, with only 10% building such capabilities in-house more often than sourcing externally.
On a societal level, most Swiss executives (86%) agree that the democratisation of AI will have a positive impact on society, markedly more than the global sentiment (66%). However, the majority (74%) also believe that such widespread use will necessitate increased regulation – an opinion echoed globally. Although Switzerland has no specific AI regulation in place, a report on regulatory approaches to AI systems is currently being prepared and is expected by the end of 2024. The Swiss Federal Council aims to adopt an approach compatible with the EU AI Act, which has established comprehensive regulations for AI systems in the EU. (Read more about the EU AI Act, the potential Swiss approach and other legal considerations)
Our view
GenAI will continue to transform industries and companies in the coming years. Swiss executives are increasingly investing in this technology and experimenting with its use in various functions. Going forward, Swiss organisations will need to monitor regulatory developments within Switzerland and the European Union, and adapt their approach accordingly. Organisations need to understand the potential benefits and risks of GenAI and have the right governance structures in place. We recommend beginning with internal use cases and data allowing for safer experimentation with GenAI.
Deloitte supports companies on their AI journey, providing expertise and guidance to help them navigate the complex landscape of these innovative technologies. Whether it's strategy development, process efficiency or improving customer experience, by staying informed and prepared, organisations can position themselves to thrive in the age of GenAI.
The state of generative AI in the enterprise: Deloitte's global research methodology
From 12 October to 5 December 2023, Deloitte surveyed over 2,800 global leaders (directors and above) to understand their views on generative AI. Participants were required to have at least one working implementation of AI and a pilot of gen AI. The survey included respondents from the Americas (56%), Europe (27%) and Asia-Pacific (17%).
There were 756 European business leaders, including 50 from Switzerland, and industries, with most representing organisations earning over US$1 billion annually. All respondents have roles in their organisation’s AI and data science strategy decisions, investments, implementation approach and value measurement.
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