You have to hand it to America's corporate leaders. They are an optimistic bunch.
About 9 in 10 U.S. business executives believe that consumers and employees have a great deal of trust in their companies. However, the reality is not so rosy.
Only 30% of American consumers feel that way, according to PwC's 2024 Trust Survey. Employees trust him more at 67%, but the gap between both groups has widened in recent years. One of the recent drivers is, you guessed it, AI. AI hasn't always captured people's hearts these days.
what happened? To gain insight, I spoke with Wes Bricker, vice chairman of his solutions co-leader at PwC US Trust.
Research shows that most business leaders agree that earning trust is good for the bottom line. But Bricker says that's becoming increasingly difficult to pull off. “Challenges to build trust are greater in frequency and magnitude than in previous years.” At the top of executives' lists are the inability to change supply chain processes or materials for cost reasons; A lack of clear trust between leaders and a lack of clarity on what stakeholders want.
“That really requires business leaders to understand who is accountable,” Bricker says. “Are we meeting our goals, are we measuring them, and are we demonstrating behavior that is contrary to our needs?”
With the advent of AI, the cracks in trust will become more apparent. Part of the solution is developing a responsible AI strategy and establishing guardrails around its use. However, research from PwC shows that only 40% of companies have a company-wide plan.
At the same time, only one-third of executives surveyed said their companies had disclosed an AI governance framework. This is not enough for workers and consumers, with around two-thirds demanding more transparency.
But their big concern is data privacy policy. While around 9 out of 10 consumers and employees say it is important for companies to disclose information, only around 30% of business owners say their companies do so. Not too much. Meanwhile, alarm bells continue to ring over privacy and data security risks, with some companies banning generative AI altogether.
Companies need to address data privacy concerns by ensuring employees and consumers understand how their information will be used, Bricker says. But that's only half the battle.
On the governance side, executives need to understand the AI their organization is using.
“Can you explain the nature of the model?” Bricker asks. “And when you incorporate the output of the model, maybe it's for pricing, maybe it's for operational decisions, making sure that the use of your generative AI application is actually achieving its intended purpose. Are you using the model with appropriate monitoring and control to ensure that it does?”
The next step is to share it all in plain English with your stakeholders.
Bricker sees an opportunity for executives to build trust in AI. “Companies and business leaders need to be the first to act here: prove it through transparency and prove it through action,” he says.
He is also confident that the situation will improve. “As customers and employees continue to build trust, trust will build as AI continues to be integrated into business, customer experience, and employee experience.”
For workers, Bricker points out that AI offers an opportunity to be more productive and focus on higher-level skills by handing over mundane tasks to technology. “Instead of fearing it, embrace it.”
Dying me with cautious optimism.
nick rockell
Nick.rockel@consultant.fortune.com
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