Key Takeaways:
– Enterprises mark Generative AI (GenAI) as a top priority, but lack the infrastructure and policies needed for success.
– US firms are 35% more likely to consider GenAI a top priority compared to their European counterparts.
– Only 37% of business leaders believe that their firms have suitable infrastructure for GenAI.
– Security, cost and data quality remain significant concerns in managing GenAI-related data.
– Firms are embracing open-source models by spreading alternatives to proprietary LLMs.
As GenAI adoption escalates among enterprises, significant hurdles remain. A survey, sponsored by Hitachi Vantara, underscores the need for robust infrastructure and well-defined policies to ensure success.
Gaining Momentum but Facing Infrastructure Challenges
GenAI awareness and interest are skyrocketing in the corporate world. The survey involving over 800 global IT and business leaders shows that 97% of companies perceive GenAI as one of their top five priorities. Notably, US companies are 35% more likely than European firms to see GenAI as the top priority.
Despite maintained enthusiasm, most respondents admitted their companies’ infrastructure is lacking for GenAI implementation. Only 37% believed their firms’ data ecosystem was well-suited for GenAI. Top-level executives were 1.3 times more likely than their subordinates to acknowledge the need for improvements.
Collaboration and the Role of GenAI
Collaboration across multiple functions within companies is on the rise. An impressive 88% of companies stated they had commenced cross-functional collaboration between IT, business teams, and data science to tap into GenAI’s potential.
GenAI’s primary use is believed to increase accuracy (56%), match technological advancements speed (47%), and address regulatory or compliance requirements (43%).
Complexities Around Data Quality and Security
Data security, ensuring data quality, and flexible data infrastructure components top the list of critical factors in enterprise data storage and infrastructure. Data privacy, potential GenAI misuse or abuse, unauthorized access, and confidentiality comprise the main security challenges.
Despite apprehensions around GenAI-triggered inaccuracies, most organizations plan to adopt Retrieval-Augmented Generation (RAG) solutions. RAG technology allows for increased precision and is set to be leveraged by 86% of organizations.
Reeling Under Cost Pressure
With nearly all enterprises (96%) exploring alternatives to proprietary LLMs, a move towards open-source models is apparent. Companies seeking cost-effective GenAI start options are proliferating.
However, the trend may pivot as firms gain expertise. As companies become conversant with the technology, they’re six times more likely to switch to proprietary models, aiming for competitive differentiation.
The lack of robust AI infrastructure was also emphasized by a report by ClearML, which pointed out significant challenges, particularly around compute management and optimization.
Fruitful Partnerships For Future Success
Hitachi Vantara, a Hitachi subsidiary specializing in data storage, data infrastructure, and hybrid cloud management, is paving the way for GenAI adoption. The company recently forged strategic alliances with NVIDIA and Cisco. It intends to develop industrial AI solutions and hybrid cloud services, respectively, to tackle ongoing data management challenges.
The report by Hitachi Vantara offers valuable insights for decision-makers. It emphasizes the paramount importance of a robust, scalable, and secure infrastructure for maximizing GenAI performance and fostering intra-firm trust.
To fully realize the potentials GenAI holds, a strong technological foundation is required, as commented by Ayman Abouelwafa, Chief Technology Officer of Hitachi Vantara. With the current anxiety around security, cost and data quality, stepping up infrastructure is key to unlocking the true power of GenAI. Without addressing them, the application of GenAI might remain a long shot.
Related Reads:
– Nvidia CEO Calls for Sovereign AI Infrastructure
– Oracle and Palantir Unlock New Cloud and AI Innovations to Power Business and Governments Globally
– Enterprises Have Already Made Deep Investments in Data Infrastructure; With AI, They’ll Finally See a Return.
