Strong Return On Investment For Early Adopters Of Gen AI: Research
Among the early adopters, 86% of those reported an increase in revenue, estimated at more than 6%, the study showed.
Google Cloud has shared new research that shows tangible return on investment of generative artificial intelligence initiatives. According to the research, 61% of 2,500 executives surveyed are leveraging generative AI, with at least one application in production. Among these early adopters, 86% of those reported an increase in revenue, estimated at more than 6%.
Almost half (45%) of the executives who reported improved productivity indicated that employee productivity has at least doubled as a result of gen AI rollouts at their organisations. Around 56% of executives reported that gen AI has bolstered their organisation's security, with 82% of those citing improved ability to identify threats and 71% reporting a reduction in time to resolve a security issue.
Over three-fourth (77%) of executives reporting business growth said they have improved leads and customer acquisition as a result of gen AI solutions. Additionally, 85% of executives reporting an improved user experience indicated that user engagement has increased from gen AI, and 80% reported improved user satisfaction.
C-Level Support Key To Closing Gen AI Adoption Gap
The speed by which organisations move from piloting gen AI to full-scale production is a key indicator of its success. Of the executives that are currently leveraging gen AI in production, 84% said their organisations were able to move from pilot to production in under six months.
However, adoption gap remains: 39% of enterprises overall have yet to implement the technology in production, with 21% actively testing, 12% evaluating use cases, and 5% not started. C-suite leaders are key to gen AI success as 91% of respondents with C-level support of gen AI also reported increased revenue estimates of 6% or more.
According to the report, organisations that utilise and invest in generative AI (gen AI leaders) exhibit certain characteristics:
Strategic Alignment: 76% of leaders effectively aligned their AI strategies with broader business goals, compared to the global average of 69%.
Dedicated Teams: 54% of leaders invested in dedicated generative AI teams, 13% more than their counterparts.
Significant Investment: 86% of leaders plan to allocate at least half of their future AI budgets to generative AI, compared to the 67% average.
Gen AI Reinvestment Cycle: Technology, Talent, Data
The early success of gen AI is driving a reinvestment cycle, with 49% of respondents surveyed planning to reinvest the gains to further improve operating profit margins. According to the report, three areas for investment are:
Technology: 47% plan to invest in aligning business and technology to support change management for user adoption of AI.
Talent: 46% plan to invest in upskilling their workforce and attracting new talent with AI expertise.
Data Quality: 43% plan to invest in data quality and knowledge management to ensure their gen AI applications are built on a foundation of accurate and reliable data.
