AI will widen corporate inequalities

The adoption of generative AI could widen corporate inequalities, says the Institute of Directors.

In a recent paper ‘Assessing the expected impact of generative AI on the UK competitive landscape’, the IoD, in collaboration with the London Business School and Evolution Limited, said “sectors prone to market consolidation would see the most significant shifts”.

The paper calls on the government to redesign the education system for a post generative AI world. There also needs to be targeted support and regulatory adjustments for identified vulnerable sectors. Enhanced legal frameworks for intellectual property and data privacy will be needed too.

The London Business School’s Michael G Jacobides, a co-author of the paper (pictured), said: “As excitement with generative AI has reached fever-pitch with consultants and vendors extolling its merits, a rigorous, independent look is overdue. Our study offers a systematic review of what directors and senior executives think generative AI can and cannot do, where we should expect it to make a difference, or where not, and what distinguishes firms which report that generative AI can move the needle and those that don’t.

“We worked with business leaders to piece together a playbook with concrete recommendations both for those leading firms, and policymakers. It’s clear that company leaders must brush the hype aside, and boldly rethink their strategy and organisation. The practical policy recommendations we provided address our concern that in the UK, there’s a risk of missing the forest for the trees with regulators and policymakers staying too narrowly within their responsibilities.”