Key takeaways:
– Most companies are making progress towards Generative AI (GenAI) adoption.
– Less than half of GenAI projects transition from proof of concept (POC) to production.
– Generative AI investments are frequently yielding positive returns including increased revenue, cost savings, enhanced productivity and improved security.
– Challenges such as lack of governance, data quality, data tools mismatch, and data access issues hamper GenAI adoption.
Generative AI (GenAI), a subtype of artificial intelligence, is increasingly capturing corporate attention. A multitude of companies are embarking on their GenAI journeys, but how successful are these efforts? Various studies have provided insights into GenAI adoption rates, deployment statistics, and barriers to implementation.
Adoption and Deployment of GenAI
The consensus from different surveys shows that a significant proportion of companies are somewhere in their GenAI adoption journey. IT leaders surveyed by Hitachi Vantara and EY indicated that 97% and 95% respectively, viewed GenAI as a top priority. A Cloudera study stated that 88% of enterprises are adopting AI to some degree, while Starburst showed 87% of organizations expressing a strong desire to implement AI within the next year.
Notwithstanding the interest, the transition from POC to production is the real test of successful adoption. A Google Cloud survey of more than 2,500 tech executives revealed that 61% had deployed at least one GenAI application in production. However, Dataiku, after interviewing 200 global senior analytics and IT leaders, found only 20% of developed GenAI applications are currently in production.
Return on Investment in GenAI
Despite the mixed results with deployment, when GenAI ventures are successful, they often deliver a satisfactory return on investment. Google Cloud reported that 86% of GenAI adopters experienced an increase in revenue, averaging a 6% return. An EY study found that larger investments in AI correlated with higher returns.
In line with these results, a 2023 Gartner survey disclosed an average revenue increase of 15.8%, cost savings of 15.2%, and productivity upturn of 22.6% from GenAI implementation. Google Cloud also reported enhanced employee productivity and improved security posture among GenAI adopters.
Barriers to GenAI Success
Despite these victories, the Dataiku study identified several primary obstacles for GenAI adoption. These hurdles include lack of governance and usage control, data quality issues, mismatched data tools, and data access challenges.
Similarly, a report by Cloudera highlighted security and compliance risks, lack of proper training, and costs as the top barriers to AI adoption. Contradictory datasets, difficulty to govern data across platforms, and data volume overload were also noted as concerns.
Interestingly, the security aspect of GenAI seems to give organizations a severe headache. A report from AppOmni revealed that 38% of organizations are anxious about GenAI security risks related to private data and company secrets. Pluralsight reported similar findings, with 56% of security professionals expressing concern about AI-powered threats.
Conclusion
Overall, GenAI has proved exciting for most companies. However, the journey from concept to production presents several challenges. Despite this, successful implementations have reaped promising rewards. As firms continue to navigate the GenAI landscape, understanding these trends and overcoming identified barriers will be crucial for successful adoption and return on investment.
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