News & Views

Human and artificial intelligence combined is the winning formula

The pace of artificial intelligence (AI) investment is exponential, with new funding rounds announced daily and the global AI market now estimated in the hundreds of billions. Across every sector, executives are being told that AI will redefine productivity, reinvent their customer experience, and reshape their workforce. It comes as no surprise then that investors, boards, and politicians alike are betting heavily that AI will drive the next wave of growth in the UK. Yet, beneath the excitement lies an uncomfortable question: are we inflating another tech bubble?

Over the past year, valuations across the AI sector have soared to eye-watering levels, with some start-ups, despite modest revenues or unproven technology, achieving “unicorn status” (i.e. a startup with a valuation of over $1 billion) almost overnight. Many enterprises are now being valued not on what they’ve achieved, but on what they might one day deliver, built on expectations of future dominance rather than present profitability. Large corporates are also restructuring entire divisions around AI adoption, while others are trimming staff numbers, assuming that the technology will plug the gaps.

The reality, as ever, is more nuanced. While AI offers extraordinary opportunities, it also comes with significant risks. The Bank of England, the International Monetary Fund (IMF), and leading global investors have all cautioned that the current surge in AI investment carries the hallmarks of a speculative bubble, with capital chasing potential rather than performance. This is hardly unprecedented, and recent history reminds us that such optimism can evaporate quickly. The dot-com boom of the early 2000s is a testament to how genuine innovation can be drowned by a sudden shift in sentiment. If history is not to be repeated, the lesson is clear - while the technology itself will endure, its financial ecosystem may not. Sustainable success will therefore depend not on how fast a business adopts AI, but on how intelligently it does so.

As this enthusiasm for AI gathers pace, business leaders are now coming under increasing pressure to commit capital quickly, often driven more by a fear of being left behind as opposed to clear strategic rationale, or evidence of commercial return. Perhaps the greatest risk of any ill-judged rush into AI lies in the likelihood of diverting attention and capital away from strengthening the fundamentals that make those companies so durable - their people, culture, and governance. While AI undoubtedly offers businesses meaningful advantages, the true strength of any organisation still lies in the judgment, relationships and shared experience of its people, and any notion of laying off experienced team members in favour of technologies that have yet to mature runs the risk of hollowing out that institutional knowledge.

Amid the competitive noise, it’s easy to understand why many business leaders turn to AI in search of automation, but while it cannot be denied that many AI tools are adept in replicating complex patterns, the same cannot be said for its ability to understand or mimic a person’s intuition, empathy or contextual understanding - all qualities that enable individuals to make sound judgments when the unexpected occurs. This is not a question of rejecting technology, but of using it judiciously, ensuring that it strengthens (rather than supplants) an organisation’s human core and individuals’ experience. While human-error will always exist, utilising that human oversight remains the best defence against the errors and blind spots of automated systems, and the combined operation of the two working together will only enhance overall accuracy, and thereby drive the efficiency that encouraged the initial adoption of those tools.

True success in AI adoption ultimately demands calibration. The most effective strategies begin not with the technology itself, but with a clear-eyed view of the business problem that needs solving. AI should serve as a tool to support strategic goals, not as an end in its own right. From that foundation, leaders can pilot new technologies in controlled environments, closely measure their impact, and assess both their benefits and limitations before committing to full-scale deployment. Human oversight must remain constant throughout this process, as while technology can enable progress, it is people who sustain it. For that reason, it’s essential that the wider workforce is brought along on the journey, ensuring they understand the tools they’re working with and becoming active participants in innovation, rather than passive recipients of change. Transparent communication and practical training help to demystify the technology, build confidence, and foster a culture of curiosity rather than fear. By maintaining this balance between human capability and machine efficiency, business leaders can ensure that their organisations harness the full potential of AI while preserving the judgment, adaptability and integrity that no algorithm can emulate.

As AI continues to reshape industries, the real winners will be those who adopt it with purpose, discipline, and awareness of its limits. For business leaders, it means balancing ambition with prudence, innovation with governance, and automation with human insight. In uncertain times, steady leadership and human judgment remain the most valuable assets a business can have.

When it comes to implementing AI or other advanced technologies, having the right legal and strategic support can make all the difference between cautious experimentation and confident transformation. From negotiating complex service provider contracts to navigating licensing, IP ownership and regulatory risk, O’Connors can provide end-to-end guidance throughout your technology adoption journey. Our approach supports business leaders in establishing the contractual and governance frameworks that enable confident, compliant and commercially sound adoption, ensuring technology becomes a source of value, not vulnerability.

For further information please contact Michael McKenna or call 0151 906 1000.