Not everyone is keen on artificial intelligence — here’s why some businesses are skeptical

When a California doctor asked state Assemblymember Rebecca Bauer-Kahan to sign a form allowing AI to transcribe her child’s medical visit, she refused. Her concern? Intimate medical conversations are being shared with for-profit tech companies, according to an October 2024 Associated Press investigation. Her hesitation reflects a growing tension across industries as artificial intelligence transforms business operations.

While AI adoption has nearly doubled in the past year, with 65% of organizations regularly using the technology, according to McKinsey’s 2024 global survey, significant sectors of the economy have reservations. Health care providers are concerned about AI “hallucinating” medical information, small businesses lack resources for AI implementation, and creative industries are fighting copyright infringement. Drata explored the hesitations that stem from a complex mix of technical limitations, ethical concerns, and regulatory uncertainties that could widen the gap between AI adopters and holdouts.