Generative AI Adoption Hits Critical Turning Point, Report Reveals

Businesses are ramping up investment in generative AI, spurred on by strong value to date but challenges remain, a new report by Deloitte found. 

According to its findings, a majority of the organizations surveyed (54%) are seeking efficiency and productivity improvements, but only 38% are tracking changes in employee productivity.

Many of these efforts are still at the pilot or proof-of-concept stage, however. Nearly two-thirds of respondents (68%) said their organization has moved 30% or fewer of their generative AI experiments fully into production. 

These findings were published in the third quarterly edition of Deloitte’s State of Generative AI in the Enterprise report, for which the consultancy surveyed 2,770 director- to C-suite-level respondents across 14 countries. 

The report provides insights into how enterprises are reaching a precarious phase with rising expectations and emerging scaling challenges on generative AI adoption, as well as how AI is meeting or falling short of expectations. 

“Our research indicates that the top benefits of GenAI are extending beyond improved efficiency, productivity and cost reduction, with more than half pointing to increased innovation, improved products and services, enhanced customer relationships and other types of value,” said Costi Perricos, generative AI leader at Deloitte Global.

Related:Generative AI Could Revolutionize Business Analytics

However, the report also found that despite increasing expectations for transformational impact, data, scaling and risk challenges are limiting options and tempering leadership enthusiasm.

Jim Rowan, applied AI leader and principal at Deloitte Consulting LLP said that as promising experiments and use cases begin to pay off, it’s clear this is a pivotal moment for Generative AI and there is a need to balance leaders’ high expectations with the challenges. 

“Our Q3 survey has revealed that now more than ever, change management and deep organizational integration are critical to overcoming barriers, unlocking value and building for the future of GenAI,” he said. 

The report concluded that demonstrating the value of generative AI deployments to the C-suite will be critical for continued investment because as use cases mature leaders will be less inclined to invest based solely on lofty visions and the fear of missing out.

For example, it found that 41% of respondents have struggled to define and measure the exact impacts of their generative AI efforts and only 16% have produced regular reports for the CFO about the value being created with generative AI.

Related:California Issues Generative AI Tool Use Guidelines

As applications and use cases mature, leaders will be less inclined to invest based solely on lofty visions and the fear of missing out, the consultancy said.