Enterprises Embrace Generative AI as Demand Rises, Report

Omdia data showed a surge in enterprise generative AI adoption in 2023, as contracts specifying the technology soared

Ben Wodecki, Jr. Editor

March 22, 2024

1 Min Read
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The rapid adoption of generative AI by enterprises accelerated significantly in 2023, according to a new Omdia report. 

Omdia analyzed data from its Enterprise AI Contracts Database which covers approximately 100 contracts quarterly and contains more than 1,700 records that identify chief AI use cases by contract, industry and geography. 

The data showed contracts involving generative AI surged from 7% in the first half of 2023 to 38% in the second half of the year. Meanwhile, year over year, the number of generative AI-specified contracts increased from just one in 2022 to 96 (23% of contracts) in 2023. 

The inclusion of generative AI in contracts suggests enterprises are truly adopting the technology, according to the report. Omdia's analysis revealed vendors introduced new generative AI products, while end-users demonstrated use cases.

“This approach may suggest some enterprises are taking shotgun aim at Gen AI to see where the technology best benefits,” said Neil Dunay, Omdia principal forecaster. “Alternatively, it could signal a squandering of investment resources if enterprises aren’t properly scoping Gen AI use cases that best fit their needs.”

Omdia identified the industries with the strongest interest in adopting generative AI. Information technology came out on top with more than half of those contracts mentioning the technology. Other industries with high interest included health care, financial services, business services, retail, media and entertainment.

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Virtual assistants had the most prominent use case followed by intelligent process automation.

Other generative AI use cases Omdia identified in multiple contracts included sports video and stats analytics for fan engagement, automated report generation and personalized marketing.

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ChatGPT / Generative AI

About the Author(s)

Ben Wodecki

Jr. Editor

Ben Wodecki is the Jr. Editor of AI Business, covering a wide range of AI content. Ben joined the team in March 2021 as assistant editor and was promoted to Jr. Editor. He has written for The New Statesman, Intellectual Property Magazine, and The Telegraph India, among others. He holds an MSc in Digital Journalism from Middlesex University.

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