Managing the risks and opportunities of generative AI

A playbook for executives — beginning with governance

October 2023

Generative AI continues to become ever more deeply intertwined into our lives and businesses. We’ve seen the fastest ramp-up in active consumer users ever. We’ve seen a leap in capabilities from OpenAI’s GPT3 to GPT4 – achievements recorded in coding and mid-level professional writing. In quick succession, tech companies have launched/re-launched competing products; start-ups have released models for bespoke applications; and companies, including PwC, have announced massive investments to create their own “CompanyGPT” for internal use and new service offerings.

But generative AI comes with a warning label. “AI systems with human-competitive intelligence can pose profound risks to society and humanity,” concerned citizens, including experts, caution. Even top providers of this technology acknowledge these risks.

Managing them is key to success. If your company wants to launch successful generative AI initiatives and gain a competitive edge, you will need to assess the risks the technology might pose enterprise-wide. For that, you will need a risk management framework that also allows you to embrace opportunity.

A risk-based approach to generative AI will start you on the right digital foot with regulators, consumers and other stakeholders. Earning trust as you deploy generative AI will position you to take full advantage, quickly, of the benefits this game-changing technology offers.