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Choosing Your First Generative AI Use Cases
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In the race to capitalize on AI, smart businesses will focus their investments on predictive generative AI
Artificial intelligence is reshaping the world, but with over $1 trillion in expected capital expenditures on AI infrastructure—from data centers to chips—the critical question remains: Where is the real return on investment (ROI) going to come from? The impact of these investments is still largely unseen, as businesses seek to separate hype from real value.
In a recent Goldman Sachs Exchanges podcast, MIT economist Daron Acemoglu and Goldman Sachs Research’s Jim Covello raised the debate on whether generative AI can live up to its massive potential, especially when it comes to ROI. Joseph Briggs of Global Economics Research suggests AI could boost U.S. productivity by 9% over the next decade, yet Acemoglu remains cautious—arguing that only 5% of tasks will be impacted by AI in the near future. So, where should companies place their bets?
Amidst this debate, one AI innovation is already delivering measurable value: predictive generative AI. While 2023 may have been the breakthrough year for generative AI, 2024 is shaping up to be the year of predictive generative AI. This technology doesn’t just generate content; it forecasts trends, optimizes decision-making, and transforms business operations—all while offering a quicker and clearer ROI.
Take the finance industry, for example. Predictive generative AI optimizes trading strategies, improves decision-making, and detects fraud—all of which have a direct impact on profitability. A leading Asian bank recently used predictive generative AI to streamline sustainability assessments, reducing task completion times by 90%.
In health care, the results are equally impressive. The Cleveland Clinic is using predictive generative AI to forecast patient outcomes in cardiac care, enabling earlier interventions and improving patient outcomes. At Stanford Medicine, a predictive algorithm is revolutionizing brain tumor treatment, maximizing tumor destruction while protecting healthy tissue.
Predictive generative AI is proving its worth across industries, from human-centric sectors like insurance and healthcare to highly technical fields like manufacturing and retail.
For example, CAA Club Group leverages predictive generative AI to predict roadside assistance demand, allowing for more efficient resource deployment. In retail, companies like Amazon are using predictive models to manage inventory and personalize customer experiences, which not only streamline operations but also boost customer loyalty.
And yet, despite these tangible benefits, trust remains a challenge. According to Deloitte, many retailers are still hesitant to fully adopt AI solutions. This highlights a key insight: AI investments must prioritize technologies that consistently deliver measurable results.
While the future of AI is undoubtedly bright, businesses need to focus on what’s working today. Predictive generative AI is already transforming industries by driving operational efficiencies and boosting profitability. With estimates from Briggs suggesting that only 4.5-4.6% of tasks will be automated in the short term, it’s clear that human oversight will remain critical.
In the race to capitalize on AI, smart businesses will focus their investments on predictive generative AI—a technology with a proven track record of delivering real-world value. This strategic approach ensures that while we prepare for AI’s long-term potential, we’re also generating immediate returns in the present.
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