Big European companies are increasingly responding to the demand for transparency around artificial intelligence, new research has found, with the largest companies in the region disclosing information on how they use the technology in their organisations.
But the research, which was carried out by FTI Consulting and Trinity College Dublin, also highlights gaps in a number of areas, such as AI policy, risk management and audits.
The report, Decoding AI Disclosure, looked at the statements of 50 of the largest European companies listed in the Stoxx Europe 50, on the use of AI. It also looked at the AI use of 10 Irish companies: AIB, Bank of Ireland, CRH, DCC, Flutter, Glanbia, Kerry, Kingspan, Ryanair and Smurfit WestRock.
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“Disclosing AI activities in annual reports is a powerful way for companies to show they are adapting to the AI revolution,” said Niamh O’Brien, senior consultant in the strategic communications segment at FTI Consulting.
“This research provides valuable insights into how companies are communicating on their AI initiatives and the steps they are taking to govern its use. Some companies are setting high standards by tracking their progress through performance indicators and audits, which will be an important trend to watch in the years ahead.”
The study examined statements in a number of areas including risk management, key performance indicators and board oversight.
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The demand for transparency on the use of AI technology is coming from a number of areas, including investors, regulatory and from the public. Artificial intelligence is becoming increasingly viewed as a business tool that can be used to grow companies, with a number of reports published in recent months showing an openness to the technology by Irish businesses.
According to the report, 80 per cent of the top European companies reported at least eight of the 10 identified categories, with Allianz, AstraZeneca, Deutsche Telekom, GSK, Mercedes-Benz, Prosus, RELX and Zurich Insurance among the top disclosers.
In comparison, 70 per cent of Irish companies reported on AI strategy in some way, below the European average, and 50 per cent disclose information on AI usage.
Although none of the Irish companies included in the research said they had a policy on AI, 40 per cent appear to recognise the challenges presented by the technology and have addressed AI risk management. That puts the companies in line with the European average.
Almost a third disclose board-level oversight of AI, but the research also revealed a gap exists in senior leadership oversight and key performance indicators, with no companies reporting on those categories.
The research also indicated that even at European level, there was some inconsistency on governance of AI, with companies reporting strongly in some areas, but falling behind in others. Audits, for example, saw only 6 per cent report on AI use, compared with no Irish companies indicating similar.
All European counterparts provided some information on their AI strategies, and 46 per cent companies provided disclosure on board oversight, compared with 20 per cent in Ireland, 40 per cent of European companies reported on risk management frameworks and 38 per cent made some disclosure on AI policy.
The research also noted that Irish companies are not of the same market size as the largest European companies, a discrepancy that likely contributes to lower levels of AI-related disclosure.
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