SME4Labour, Industry Forum, and SAP Fringe: The Reality of AI in Business

The panel discussion, chaired by Rod Dowler (Executive Chair, Industry Forum), explored the current and potential applications of artificial intelligence (AI) in business, with an emphasis on regulation, skills development, and the integration of AI in various industries. Hosted in partnership with SAP UK, the event brought together experts from technology, government affairs, and parliament to share insights on how AI is transforming industries, the ethical and regulatory challenges, and the importance of digital skills for economic growth. Key Takeaways:

• AI presents transformative opportunities in many sectors, with significant potential to enhance efficiency, decision-making, and economic growth.
• Responsible and transparent AI use, combined with clear regulations, is crucial to maintaining public trust and fostering innovation.
• Developing digital skills through education and training is essential to bridge talent gaps and ensure AI benefits are accessible to all.

Panel Highlights and Key Topics

1. Introduction to AI and Business Transformation:
   • Rod Dowler opened the event by acknowledging the growth of AI technologies and the need to explore their impact on industries. He introduced the speakers and set the agenda to focus on AI applications, opportunities, and associated risks, including what the government should do to seize opportunities and mitigate risks.
   • AI is not a single technology but encompasses a range of applications, including machine learning, automation, and data processing, each carrying different implications for regulation and business.
2. AI in Life Sciences and Regulatory Impact:
   • Steve Yamm MP, who has a background in life sciences and technology, shared examples from his experience working in AI applications for pharmaceutical development. He spoke about his work with Pfizer during the pandemic, using AI and machine learning to accelerate vaccine development and regulatory processes.
   • He highlighted how AI's ability to quickly analyze data and meet regulatory requirements is transformative for life sciences, enabling more efficient clinical trials and manufacturing processes for new therapies.
3. SAP’s Approach to Responsible AI:
   • Dr. Chris Francis from SAP UK shared the company's commitment to building AI technologies that are relevant, reliable, and responsible. He introduced SAP’s AI Ethics Committee and their adoption of UNESCO’s recommendations on AI, ensuring adherence to guidelines like not engaging in mass surveillance, reverse anonymization, or using AI in warfare.
   • He emphasized that AI use in businesses must comply with regulations and ethical practices, especially in areas like finance and HR, where SAP’s AI tools are widely used to match purchase orders and invoices.
4. AI-Driven Skills Development and Workforce Transformation:
   • James Johns discussed Workday’s AI tools and the concept of "skills cloud," which applies AI to create a taxonomy of skills within an organization. This allows employers to deploy talent effectively and employees to plan their careers and acquire necessary skills.
   • Workday has principles to amplify human potential with AI rather than replace it, ensuring fairness, transparency, and compliance with data protection and privacy obligations. Workday’s approach to AI focuses on improving human decision-making and supplementing employee capabilities.
5. AI in Disaster Response and Data Analysis:
   • Louise Jones MP shared her experience with a tech startup focusing on AI's use in analyzing natural disasters for the insurance industry. She spoke about AI's role in quickly assessing damage from hurricanes and other events through satellite data and providing support for claims resolution.
   • Louise highlighted the challenges of developing AI models with high-quality data, the need for skilled talent to work on AI, and the role of human oversight in AI decision-making to ensure accuracy and reliability.
6. Government Policy on AI and Skills Development:
   • Chi Onwurah MP spoke on the broader implications of AI in policy, the necessity of forward-looking regulation, and the need for skills in STEM fields. As the chair of the Parliamentary Select Committee on Science, Innovation, and Technology, she emphasized the importance of building public trust in AI through transparent policies and ethical development.
   • Chi advocated for a regulatory innovation office to adapt regulations for emerging technologies, balancing protection and innovation while ensuring accessibility for small businesses.
7. Challenges in Regulation and Digital Skills:
   • The panelists agreed that regulation needs to be context-specific and that industries like finance, legal, and procurement already have regulations that AI needs to fit within. The focus was on finding a balance between allowing innovation and protecting consumers.
   • Steve Yamm MP highlighted the importance of creating technical and vocational pathways into STEM careers, ensuring that opportunities in AI are accessible to a broad range of individuals, not just those with advanced degrees.
8. Audience Questions: Skills, Regulation, and Digital Inclusion:
   • Audience members raised questions about improving digital skills in schools to attract a diverse range of students into data science and AI careers, particularly girls and underrepresented groups.
   • There were discussions about avoiding overregulation that might stifle innovation and ensuring small businesses have the support they need to adopt AI without facing insurmountable challenges.
   • The issue of digital exclusion was addressed, emphasizing the need for affordable access to AI tools and support for small businesses in navigating AI's potential and its environmental footprint.

Conclusion The event underscored the transformative potential of AI across various sectors, from life sciences to disaster response. The panelists emphasized the importance of responsible AI use, transparent regulation, and developing digital skills to support innovation and growth. By aligning policies with ethical principles and promoting skills development, the UK aims to foster a thriving AI landscape that benefits businesses, workers, and society as a whole. Panelists:

• Dr. Chris Francis – Director of Government Affairs, SAP UK, Technology Policy and Standards Expert
• James Johns – Head of Corporate Affairs, Workday
• Chi Onwurah MP – Former Shadow Science, Innovation and Technology Minister
• Louise Jones MP – MP for North East Derbyshire
• Steve Yamm MP – MP for Mansfield

Chair: Rod Dowler, Executive Chair, Industry Forum