15 Aug AI LABEL COULD MEAN MORE HARM THAN GOOD; RED TAPE BLUES
AI LABEL COULD MEAN MORE HARM THAN GOOD
Labelling products as “AI-powered” can actually reduce consumer interest, a study published in the Journal of Hospitality Marketing & Management reveals.
The research found that consumers are still expecting artificial intelligence (AI) to be flawless but fear its potential faults. To address this, companies are being advised that instead of pushing “AI” as a buzzword, they should focus on clear and beneficial messaging about how AI enhances the product or service.
As AI continues to advance and swiftly becomes a party of everyday life, it remains a considerable opportunity for brands. Yet, as tech companies rely on “AI” as a term to build credibility, it is vastly different for consumer product brands and services, and negative consumer perceptions should be addressed.
RED TAPE BLUES
Company directors are becoming increasingly concerned about managing regulation and red tape as well as how they’re going to develop strategies for using artificial intelligence (AI).
The latest annual Directions report from King & Wood Mallesons found while the top two overall areas of greatest opportunity or concern in the next three to five years were developing new business models (41 per cent) followed by managing cyber risks (33 per cent), the proportion of directors concerned about responding to and managing excessive regulation and red tape had spiked to 32 per cent from 26 per cent a year ago.
Concerns around developing strategies for managing the use of AI also rose from 21 per cent to 27 per cent while and addressing and responding to pressures from and / or influence of shareholders and other key stakeholders lifted from 11 per cent to 26 per cent).
DO WE TRAIN THE FUTURE OR OUTSOURCE IT?
A recent report by the Australian Information Industry Association (AIIA) has revealed that just 1 per cent of tech grads are employment ready, leaving businesses in the industry in a tricky predicament: they either spend time and money on training, or recruit for talent overseas.
Simon Bush, chief executive of AIIA, said ‘six to nine months of training’ are required for new grads to be in a position of productivity, and with SMEs already struggling with increasing costs, turning to overseas recruitment seems very appealing.
But, if we don’t invest in equipping grads with the right skills now, when will they ever become job-ready? And if we rely on offshore workers, what does that mean for the future of Australia’s tech industry?
Feel free to share these updates with colleagues or friends. They can sign up here to receive our daily newsletter.