CEOs and executives worldwide all agree on the disrupting impact of Generative AI on business. Let’s dive deep into the topic and see why you should start investing in Generative AI for enterprises now.
What is the current state of Generative AI solutions for business?
The year 2023 marked a turning point for Generative AI. The rise of tools like Chat GPT, Bard, Midjourney, and many others is already changing the landscape in virtually every industry, and their impact will continue to grow in the foreseeable future.
EY India’s recent survey found that 100% of CEOs are committed to investing in GenAI and 84% see the need to act quickly to gain a competitive advantage.
Generative AI is a central investment theme as it has the potential to disrupt business models and open up incredible opportunities for those ready to jump on board. It has become imperative for business leaders to understand the implications of artificial intelligence, incredibly generative AI, to keep pace with the competition; however, knowing how to embed AI correctly into a comprehensive and efficient strategy is far from simple.
Challenges, obstacles, and entry barriers prevent many from thoroughly experimenting with GenAI solutions, but the rising importance of this disrupting technology cannot be ignored any longer.
What are the best applications for Generative AI in business?
AI is a horizontal technology that can be applied widely to different aspects of business. CEOs and CTOs must remember this while identifying which applications best align with the company’s goals and objectives.
However, while there are virtually endless applications for GenAI, some of them are considered more urgent or hold more potential than others.
Generative AI is a strategic priority for 71% of business leaders. In particular, according to Gartner, the fields in which companies are focusing their investments and efforts are:
- Customer Experience and retention (38%)
- Revenue growth (26%)
- Cost optimization (17%)
- Business continuity (7%).
Understanding the current situation
What is the actual generative AI market size, and what does data tell us about its current usage?
- According to IBM Newsroom, 3 out of 4 CEOs (75%) now believe companies with the most advanced GenAI will have a competitive advantage.
- 50% of CEOs report that they are already integrating this technology into their product or services, while 43% are using it to inform strategic decisions and 36% for operational decisions.
- 69% of CEOs are already seeing huge benefits across their organizations
- Only 29% believe they have the in-house expertise to manage Generative AI efficiently.
While this data shows the significant interest in this technology, it also tells us that many are struggling to implement a comprehensive Generative AI strategy and are not reaping all the benefits it could offer. This is the time to act to gain a competitive advantage.
Why you should invest in GenAI now: Benefits and critical advantages
AI, particularly Generative AI, is a top strategic priority in the executive agenda. It has opened up a new era of business opportunities, and those companies that will be first to capitalize on them will gain a crucial competitive advantage.
89% of executives rank GenAI as one of the top three tech priorities for 2024.
But how do we know that the interest around Generative AI is more than just hype and will provide lasting benefits? Much research is currently going on on the topic, especially to measure the impact GenAI can have on business KPIs in different fields of application.
Using GenAI for cost savings and cost optimization
BCG found out that 54% of business leaders expect to gain cost savings in 2024 thanks to GenAI, and half expect those savings to be around 10%.
Cost savings from AI come mainly from productivity gains and automation in:
- Operations
- Customer service
- IT
These savings can be reinvested in the business and its people to create new revenue streams, foster an environment of learning and development, and drive growth. This will be crucial in the near future to stand out among the competition and set yourself up for success.
Leveraging the power of GenAI in marketing
However, the benefits of Generative AI in business aren’t limited to cost savings. With consumers becoming increasingly wary and annoyed by advertising, marketing efforts need to change. 70% of consumers want personalized ads, meaning unique content based on their shopping behavior and purchase history, delivered at the right time. However, personalization marketing requires access to consumer data, generative AI data analytics capabilities, and the right consumer insights. GenAI can boost your company’s marketing strategy with hyper-personalized experiences, targeted marketing campaigns, and valuable insights.
Bring your customer experience to the next level
Generative AI solutions can boost productivity and automation as well. This can be particularly impactful in the customer service field, where a McKinsey study found that 80% of tasks performed could be automated, resulting in a 20% saving for cost-to-serve.
AI-enabled customer service opens the door to a new frontier of customer engagement. It is now the fastest and most effective way to deliver truly personalized and proactive experiences that drive customer engagement and increase satisfaction.
What are the challenges in GenAI implementation?
While it is widely recognized that Generative AI services will continue to have a transformative impact on business, most companies are still struggling to understand the best way to leverage its power.
EY study found that 80% of leaders believe that the current uncertainties around AI make it challenging to build a robust strategy.
- A significant challenge is technological development's rapid pace, making it difficult to allocate budget and keep up with innovations and changes.
- 20% of respondents highlighted the uncertainty around regulations as one of the main obstacles in implementing Generative AI. With unclear regulations, many gray areas, and the high probability of new laws coming up soon, it is risky to take a move and design an AI strategy.
- Another critical obstacle is the presence of entry barriers. Adopting a new technology, especially one as advanced as artificial intelligence, requires a huge initial investment in capital and specialized talent.
Winners are already investing in Generative AI for business to pave their road to success
Despite challenges, we must face Generative AI. It is the most groundbreaking technology we see now and is here to stay. The opportunities it offers are too significant to be ignored and can make the difference between success and being left behind.
The potential impact of AI is enormous, with the McKinsey Global Institute estimating that GenAI could add the equivalent of $2.6 trillion to $4.4 trillion annually in value across the globe.
These numbers clearly show how CEOS must understand the implications of Generative AI for their business and their industry and act quickly.
Companies should prioritize strategic partnerships with AI services providers, industry experts, and Generative AI consulting companies to develop an efficient and robust AI strategy and build their AI ecosystem. Tredence is a solution provider with proven experience in AI and data analytics and a broad portfolio of successful Generative AI use cases. Whatever your needs and necessities, Tredence is the right partner to start your digital journey and learn how to generate value by leveraging the true power of GenAI.
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