The AI year in review

Written by Prof. Alan Brown, AI Director, Digital Leaders

As we approach the start of 2025, the AI landscape presents both extraordinary opportunities and complex challenges for organizations worldwide. On the one hand, there is no doubt that breakthrough progress has being made. However, at the same time, the challenge of scaling AI has led to a proliferation of exaggerated claims and sensationalist news articles. This makes it increasingly difficult to distinguish between genuine advances and the hype that surrounds it.

A significant concern is not only the accuracy of AI-generated content but also its provenance and authenticity. There is a real danger of being overwhelmed by a deluge of low-quality AI-generated content. Faced with such difficulties, during 2024 organizations have been seeking to learn quickly from by asking different communities a range of questions about their understanding, attitudes, and use of AI tools and technologies. Dozens of surveys have been run throughout the year revealing a broad set of details and opinions on the current state of AI.

To explore these results, I have been leading a team at Digital Leaders, an independent forum exploring new ideas and approaches to digital transformation in the public and private sectors, to review many of these surveys and to examine their main findings. The outcome of that work is a new report that has just been released reviewing the state of AI in 2024.

 

The Digital Leaders 2024 state of AI report

The Digital Leaders 2024 State of AI Report is a comprehensive synthesis of 23 AI surveys representing the views of nearly 40,000 respondents. It summarises these results and offers a critical roadmap for leaders seeking to understand the intricate dynamics of AI adoption and transformation. It’s a pivotal moment for digital leaders, where technological potential meets organizational reality. This report seeks to establish a baseline for understanding the next steps in this journey. As a result, it provides an unfiltered view of the current AI ecosystem, revealing a landscape far more nuanced than today’s constant stream of breathless AI headlines might suggest.

By examining these surveys, the report identifies key themes shaping the AI landscape in 2024. These themes highlight the transformative potential of AI across various industries, from healthcare and finance to transportation and education. However, they also underscore the challenges posed by AI, such as job displacement, potential misuse, and the need for robust regulations.

Through this analysis, the report highlights the primary debates taking place as organizations seek to adopt AI at scale within 5 areas that characterize the state of AI in 2024: Attitudes & Awareness; Technologies & Tools; Risks & Harms; Adoption & Scaling; and Jobs & Skills.

 

Five striking observations reshaping the AI landscape

The report contains much useful information on the key themes of 2024, and I invite you to take a read and use the report’s findings in your planning for 2025.

Yet, beyond the general results offered in the report, an examination of the wide set of AI surveys allows us to also make several important observations about the state of AI today. Here are 5 useful insights that struck me as I was putting the report together. (The reference numbers refer to the surveys in the Appendix to the report.)

1. The Proficiency Paradox

Despite widespread AI enthusiasm, a stark skills gap emerges. The AI Proficiency Report [Survey #12] reveals that only 7% of professionals in the US, UK, and Canada demonstrate high AI proficiency. Critically, 82% remain “AI newcomers” or “experimenters” unable to realize significant productivity gains. Yet, those top performers save up to 12 hours of work weekly, highlighting the immense untapped potential of targeted AI skill development.

 2. European AI Hesitation

The Gallup Culture of AI Benchmark Report [Survey #7] exposes a surprising European reluctance. While global markets buzz with AI excitement, only 37% of European employees show high AI interest—dramatically lower than the 50% enthusiasm in other regions. More concerning, six in ten companies report leadership teams uncomfortable with AI, and seven in ten believe their workforce is unprepared for AI integration.

 3. Workforce transformation at scale

The bsi and Yonder report [Survey #15] paints a dramatic picture of imminent workplace evolution. An astounding 83% of business leaders anticipate changes in manual roles, with 72% expecting complete automation in some areas. Knowledge-based roles face an even more profound transformation, with 89% expecting role modifications and 77% foreseeing potential AI-driven replacement.

 4. Financial Services: Ambition vs. Preparedness

The EY 2024 Financial Services AI Survey [Survey #22] reveals a critical disconnect. While 91% of UK financial firms have adopted AI to some degree, only 9% feel prepared for incoming regulations. Remarkably, 14% lack an AI regulatory risk framework entirely. Despite 82% planning increased Generative AI investment, merely 27% have established training programs, and 77% acknowledge workforce capability gaps.

 5. Manufacturing’s AI Awareness Challenge

The Make UK and Autodesk Survey [Survey #23] exposes a knowledge deficit in manufacturing. Only 16% of manufacturers consider themselves AI-knowledgeable, with a mere 7% describing their expertise as “very knowledgeable”. Paradoxically, 75% plan to increase AI spending. Significant adoption barriers include systems integration challenges (44%), high costs (44%), and technical complexity (39%).

 

Implications for Digital Leaders in 2025

Reviewing these AI surveys offers an important opportunity to take stock of the current state of AI. It paints 2024 as a year of AI contrasts with significant gaps between AI aspirations and adoption reality, wide differences between the optimism about the innovative power of AI and fears of its disruptive impact on the workplace, and a gulf appearing between those organizations accelerating AI use and those left behind.

However, just as importantly, these results also allow us to look forward and to prioritize where attention may need to be placed in 2025. This review suggests that digital leaders will start the new year with a clear set of priorities:

  • Targeted Skill Development: Invest heavily in AI literacy and proficiency programs, focusing on bridging the skills gap through comprehensive training and upskilling initiatives.
  • Cultural Transformation: Address organizational resistance and leadership hesitation through transparent communication, practical demonstrations of AI’s value, and inclusive change management strategies.
  • Regulatory Readiness: Develop robust AI governance frameworks that anticipate regulatory requirements, ensuring compliance and building stakeholder trust.
  • Strategic Investment: Target AI spending with clear, measurable outcomes, prioritizing high-impact use cases and maintaining a realistic understanding of implementation challenges.
  • Organizational Realignment: Recognize AI as a transformative force requiring not just technological implementation, but comprehensive organizational adaptation.

The Digital Leaders 2024 State of AI Report is more than a collection of statistics—it’s a strategic compass for navigating the complex AI landscape. It reveals that successful AI integration is not about chasing the latest technological trends, but about thoughtful, strategic implementation aligned with organizational goals and human potential.


Read More Bias &Ethics

Comments are closed.