Industrial Automation Magazine India

Enterprises have just two years to harness the full potential of Generative AI

Published on : Friday 24-05-2024

New Report from Genpact and HFS Research shows only 5% of enterprises have achieved mature gen AI initiatives, signaling room for growth.

New York, May 23, 2024 – Genpact, a global professional services and solutions firm delivering outcomes that shape the future, and HFS Research, a leading global research and analysis firm, issued a new joint research report titled "The Two-year Gen AI Countdown:  How businesses are scaling GenAI adoption and avoiding the productivity trap," which reveals a pressing insight: there's a mere two-year window to capitalize on the advantages of generative AI before competitive disadvantages emerge. Amidst the dynamic evolution of the digital realm, businesses stand at a critical juncture as they embrace the revolutionary potential of generative AI (gen AI).

The report, which was based on a survey of 550 senior executives from organizations with revenues of $1 billion or more across 12 countries and 8 industries, sheds light on the urgency and challenges of gen AI adoption. Key findings show that while most enterprises are in the early stages of their gen AI journeys, a significant majority are heavily investing in exploring and expanding gen AI capabilities.

"Our research indicates the majority of executives view generative AI as a catalyst for value creation, fostering not only productivity, but also customer satisfaction, revenue growth, and competitive advantage," said Balkrishan "BK" Kalra, President and CEO, Genpact. "The fundamental shift will be in how enterprises think about data and technology; this will shape the future competitiveness and success of organizations globally. At Genpact, we believe the opportunity to drive exponential outcomes is now, by leveraging domain expertise alongside data, tech, and AI to unlock value and innovation for our clients."

The research reveals that only 5% of enterprises have mature gen AI initiatives, yet 61% of executives allocate up to 10% of their tech budgets to hasten adoption, highlighting gen AI's pivotal role in value creation. Investment data shows 51% of executives reallocating funds, primarily from IT infrastructure and software development, while 50% set aside dedicated funds for gen AI, with 42% planning to reinvest anticipated efficiency gains.

Among the industries surveyed, health care, retail, and high-tech are most inclined to redirect existing funds toward gen AI investments. In contrast, the banking and capital markets and the insurance sectors prefer to allocate additional dedicated budgets for their gen AI initiatives, indicating a strong commitment to gen AI's potential. Meanwhile, the life sciences sector adopts a dual strategy, counting on forecasted gen AI-driven savings for funding while remaining open to external funding and partnerships.

To access the report and data dashboard, visit: Genpact HFS GenAI Study Findings

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