Enterprises Are Cautiously Optimism About Scaling AI: Cognizant Study

More than three-fourths (77%) of global global companies want to grow revenues through artificial intelligence, with around $50 million average AI investment planned this year by organisations. However, enterprises are cautious about scaling AI, with only 26% having implemented cross-enterprise use cases, according to a report by Cognizant Technology Solutions Corp. 

Cognizant released a companion analysis to its 2023 study with Oxford Economics, and the new report shows that cautious optimism is driving current market adoption of generative AI across various industries and geographies.

The greatest strategic priority for generative AI adoption is enhancing productivity. Additionally, around 76% of businesses are looking to leverage the technology to create new revenue streams, while 58% are incorporating revenue increases into their business cases, according to the study.

In terms of readiness and business cases, the companies surveyed indicated that they plan to invest an average of $47.5 million in generative AI this financial year. Most funding is expected to come from IT and technology budgets, with contributions also from marketing and R&D.

Furthermore, the survey highlighted a commitment to workforce transformation, with 54% of companies planning to upskill workers to address skills gaps and 44% seeking to transition displaced workers to new roles.

Despite the enthusiasm for adopting generative AI, businesses also recognise the challenges of scaling the technology. Only 26% of companies have implemented cross-enterprise use cases, and there is widespread concern that delays in adoption could give competitors an advantage.

Around 70% of companies said they are not moving fast enough, while 82% suggested that delay in execution could place them at a competitive disadvantage. The data also pointed to the need for outside expertise to help with AI adoption, with 43% of companies indicating they plan to work with external consultants to develop a plan for generative AI.

"With our prior study predicting that generative AI tools could inject nearly $1 trillion into the U.S. economy and even more globally over ten years, it is not surprising that our latest survey identified gen AI as a core source of potential growth for most companies. Simultaneously we see a cautious approach in adopting this technology, as executives around the world are looking for experts to help them traverse the AI productivity-to-growth journey," said Cognizant Chief Executive Officer Ravi Kumar S.

The survey, conducted in June 2024, includes insights from 2,200 executives spanning 23 countries—including India—and 15 industries—including banking and financial services, energy and utilities, healthcare, insurance, life sciences, manufacturing, public sector, retail, transport and logistics.

The analysis introduced a "momentum score," derived from analysing factors that could either inhibit or accelerate business adoption of generative AI within each country, from the regulatory environment and local infrastructure to the cost of capital and talent availability. North America leads with a momentum score 15% above the global baseline and indicating a bullish outlook, while EMEA and APAC trail behind at -4% and -14 respectively, indicating a more cautious approach.