The AI hype rolls on—and whether or not it’s actually consultant of the truth, it’s greater than sufficient to ship IT groups into turmoil in a mad deployment race. As nice because the promise of generative AI is, so too is the specter of being left behind if companies take a “wait and see” method, which has been the wise factor to do previously. So not like different hype cycles which have come earlier than it, IT leaders are shifting rapidly to put money into and implement this tech, reveals new analysis from enterprise work assistant and AI platform Glean and expertise analysis and advisory agency ISG.
“Right now’s IT leaders have lived by a number of hype cycles heralding new applied sciences as transformative, and this research demonstrates that these leaders see one thing completely different in generative AI,” mentioned Arvind Jain, Glean CEO and co-founder, in a information launch. “Corporations are shifting with unprecedented velocity to put money into and deploy generative AI. Consequently, they require options that allow them to undertake this highly effective new expertise rapidly with out taking over pointless threat. With the proper companions, enterprises can unleash the productiveness and operational efficiencies of generative AI and keep away from destructive penalties.”
Key findings from the research:
In a job regularly evaluated on its skill to scale back prices (leaders mentioned this was the primary metric they’re evaluated in opposition to) and distinguish hype from actual enterprise worth, IT leaders are wanting to spend on generative AI.
- Funds for generative AI (inside IT budgets) is predicted to almost triple by 2025. Respondents reported that generative AI initiatives consumed a median of 1.5 p.c of budgets in 2023, and are anticipated to rise to 2.7 p.c in 2024, and 4.3 p.c in 2025.
- Corporations with larger income are likely to plan on investing extra in generative AI. For firms with greater than $5 billion in income, 26 p.c plan to take a position greater than 10 p.c of their IT funds in generative AI in 2025.
- 53 p.c of leaders mentioned that generative AI will pull funds away from different IT initiatives, and 52 p.c additionally disagreed with the notion that generative AI is a distraction from extra necessary IT actions.
Not solely are IT leaders making large monetary investments in generative AI, they’re additionally prepared to tackle some threat to take action rapidly.
- Greater than a 3rd (34 p.c) of leaders surveyed disagreed with the concept that it’s higher to decelerate generative AI adoption than threat destructive penalties, suggesting that some IT leaders are prepared to make strikes quick and produce on new options rapidly, fairly than wait to see how the cycle performs out.
- Solely 8 p.c of leaders surveyed mentioned that their greatest concern about implementing generative AI was that the capabilities have been altering too quick for them to have the ability to make investments but. As a substitute, their greatest concern is round a lack of know-how in generative AI of their group.
- 47 p.c of these surveyed mentioned they consider they’re forward of their opponents of their group’s use of generative AI. Of these, 16 p.c strongly consider that they’re forward, and 31 p.c consider so much less strongly. 22 p.c disagree that they’re forward of their opponents, and 31 p.c consider that they’re in the midst of the pack. These outcomes recommend that whereas many leaders would possibly suppose they’re out in entrance of their opponents, they’re not assured about it.
With such quickly rising funding in generative AI, do firms have a transparent methodology for measuring return on funding? Not fairly but.
- 28 p.c of respondents mentioned they’re producing optimistic ROI from generative AI initiatives, and 31 p.c mentioned that they consider they’re producing optimistic ROI, however don’t have laborious information to help this perception. 17 p.c mentioned they don’t seem to be producing optimistic ROI but, however they anticipate they may within the subsequent 12 months; 6 p.c mentioned they don’t anticipate to generate optimistic ROI within the subsequent 12 months, and 17 p.c say it’s too early to inform.
- Worker productiveness was cited because the primary metric used to judge the ROI of generative AI, with 57 p.c of respondents saying that it’s a metric they use to measure effectiveness.
- For these firms which have already carried out some generative AI instruments by pilots or different packages, 46 p.c of respondents mentioned that the outcomes have been slightly higher or significantly better than they’d initially anticipated, indicating that these early trials are driving elevated budgets for the subsequent 12 months.
Obtain the complete report right here.
This survey was commissioned by Glean. To develop this report, ISG surveyed 224 senior-level IT leaders (VP and C-suite) based mostly throughout the USA and Europe. Leaders work at firms with no less than 1,000 workers and no less than $100 million in annual income. The survey was performed in November 2023.
