Manufacturers are launching GenAI initiatives more slowly than expected due to concerns around the technology’s accuracy, US software company Lucidworks found in a study issued on Wednesday (10 July).
The study, entitled the GenAI Global Benchmark Study, surveyed over 2,500 global leaders involved in AI technology decision-making.
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Lucidworks found that just 58% of manufacturing leaders plan to increase their spending on AI in 2024.
GenAI has increased in popularity following the release of OpenAI’s ChatGPT. However, the technology can sometimes generate inaccurate outputs known as hallucinations.
Lucidworks found that 44% of manufacturing respondents had concerns about the accuracy of GenAI.
“While many manufacturers see the potential benefits of generative AI, challenges such as response accuracy and cost are causing them to take a more cautious approach. This is reflected in spending plans, with significantly fewer planning to increase AI investments compared to last year,” said Mike Sinoway, CEO, Lucidworks.
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By GlobalData“B2B companies and manufacturers have much to gain if they can balance cost and risk to improve efficiency, enhance the buyer experience, and reduce operational costs using GenAI,” he added.
GlobalData forecasts that the overall AI market will be worth $909bn (£712.25bn) by 2030, registering a compound annual growth rate (GAGR) of 35% between 2022 and 2030.
In the GenAI space, revenues are expected to grow from $1.8bn in 2022 to $33bn in 2027 at a CAGR of 80%.
