- Research shows only 5% of enterprises have achieved mature
gen AI initiatives, signaling room for growth
- 61% of enterprises allocate up to 10% of tech budgets to gen
AI, recognizing its role in value creation
- 74% anticipate productivity gains, while 52% caution against
overemphasis on productivity, citing broader business
goals
NEW
YORK, May 22, 2024 /PRNewswire/ --
Genpact (NYSE: G), 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."
Organizations are Doubling Down on Investment
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.
"As companies step into generative AI's uncharted waters, the
journey holds huge promise, but it is not without its perils,"
said Sreekanth Menon, Global Lead
for AI, Genpact. "The challenge for most enterprises is
they remain anchored in proofs of concept that can be impressive,
but rarely reach operational scale. Having access to insights that
can chart a course toward gen AI's full benefits — beyond
productivity alone — is invaluable."
Beyond Productivity Gains
The report also highlights that while 74% of executives
anticipate gen AI driving productivity gains, concerns are raised
about overemphasizing productivity at the expense of broader
business goals. 52% of respondents caution against this approach,
citing potential negative impacts on employee experience.
"The considerable investment in gen AI showcased in this
research underscores its pivotal role as a primary catalyst for
future value generation," said Phil
Fersht, CEO and Chief Analyst, HFS Research. "The dawn
of the generative AI era signifies not just efficiency gains, but
also the creation of tangible business value. Enterprises ought to
gauge the influence of gen AI by its capacity to forecast and
tailor experiences before solely focusing on productivity
gains."
The Data Quality Imperative
The success of gen AI initiatives hinges on the quality of data.
Organizations targeting gen AI outcomes within two years are
grappling with challenges such as data quality and strategy,
underscoring the urgent need for a robust data strategy.
Shifting Engagement Models for Success
Executives emphasize the need for a shift in engagement models
to accommodate the AI era. Current time and material driven models
will be rendered ineffective, with 80% recognizing the necessity of
transitioning to performance- and purpose-driven commercial models
with partners to fully capitalize on gen AI's potential.
Maturity Levels
The research divides enterprises into four gen AI maturity
levels reflecting the commitment of investments and the extent of
gen AI deployment within their businesses. Across these maturity
levels, the perceived top benefits of gen AI differ.
- Pioneers (5%): Leading integration and setting
benchmarks, Pioneer organizations are seeking direct growth
outcomes from gen AI, such as increased market share and
competitive advantage.
- Fast Followers (27%): Strategically deploying gen AI for
efficiency gains, Fast Followers are focused on using gen AI to
enhance customer experience.
- Wait and Watch (45%): Delaying investment, Wait and
Watch enterprises aim to leverage gen AI primarily for operational
efficiency and productivity.
- Deniers (23%): Skeptical of gen AI, Deniers are missing
out on potential innovations (not included in report).
As organizations advance in their gen AI journeys and drive
operational improvements, they recognize that the true advantage
lies in aligning their AI strategies with growth and
market-oriented gains. But time is short. The report urges
organizations to act swiftly and decisively, using gen AI to spur
innovation, create value, and maintain competitiveness in an
increasingly AI-driven world.
To access the report and data
dashboard, visit: Genpact HFS GenAI Study
Findings
About Genpact
Genpact (NYSE: G) is a global professional services and
solutions firm delivering outcomes that shape the future. Our
125,000+ people across 30+ countries are driven by our innate
curiosity, entrepreneurial agility, and desire to create lasting
value for clients. Powered by our purpose – the relentless pursuit
of a world that works better for people – we serve and transform
leading enterprises, including the Fortune Global 500, with our
deep business and industry knowledge, digital operations services,
and expertise in data, technology, and AI.
Get to know us at Genpact.com and
on LinkedIn, Twitter, YouTube,
and Facebook.
MEDIA CONTACTS:
Sue
Martenson
Genpact Media
Relations
978-905-9582
susan.martenson@genpact.com
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SOURCE Genpact