GenAI is inarguably the hottest topic in high tech today.
Businesses are scrambling to come up with innovative AI-driven applications that will help drive transformational outcomes. The pressure is on executives to demonstrate how they will use the technology, which learns from large volumes of input data to generate new content, increase productivity, improve customer service, and increase profitability.
In a survey of 2,508 business leaders, the Google Cloud ROI (return on investment) of GenAI study found a high level of executive satisfaction with early returns from their GenAI implementations. Some 84%were able to implement an AI use case concept into production within six months of the initial idea. And 74% report their companies are already achieving a return on their GenAI investments.
GenAI drives increase in revenue
The vast majority – 86% of businesses using GenAI in production – expect to see at least a 6% increase in annual revenues attributed to AI. Executive participation is key to this fast return. Some 91% of those forecasting an increase in annual revenues said that success is tied directly to C-level sponsorship.
Organisations are seeing gains in productivity and other areas from their GenAI investments. Nearly half – 45% – who noted productivity improvements from GenAI implementations said employee output has at least doubled. In addition 63% noted that GenAI is driving business expansion. GenAI is helping drive growth in areas including improved leads, new customer acquisition, and new product and service creation which ultimately increase revenue.
Improving customer and end user experiences is one of the major drivers of early GenAI deployments. The Google Cloud research uncovered big benefits in this vein. The 85% of respondents who observed their deployments producing a better user experience saw a quantifiable increase in user engagement.
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By GlobalDataOn the security front, 56% said AI is helping improve their security posture by elevating the accuracy and speed of threat identification. 71% report that they are lower resolution times while 65% note they are seeing fewer security tickets.
Challenges in deployment
While these glowing reports from the survey are encouraging, the conversations that GlobalData analysts are having with professionals actively deploying GenAI show as many challenges as opportunities. Many adopt a fail-faster strategy, understanding that many proof-of-concept trials will ultimately disappoint.
There are also issues around which GenAI can and should be prioritised. And as organisations shift more resources to GenAI development and deployment, they need to make sure that other areas of IT like security aren’t exposed to more risk. At Google’s own Cloud Security Summit in August, one executive noted that one of the biggest stumbling blocks to real GenAI success is that too many of the projects are small in scale.