Generative AI is the future of business, as we know. Its vast potential promises to redefine the contours of innovation, efficiency, and competitive advantage. But are brands and businesses ready? New research from business consultancy Guidehouse and CDO Magazine examines how organizations and executives across the public sector and commercial industries are embracing the game-changing technology, and where we are right now on the road to that promise.
The State of GenAI Today joint report illustrates the transformative potential of GenAI in reshaping industries, the critical need for readiness and strategic planning, and the importance of governance frameworks in harnessing GenAI’s full benefits. The research details five priorities for organizations as they navigate the complex GenAI landscape and leverage its potential to drive innovation and competitive advantage.
“Many organizations are excitedly implementing GenAI strategies and tools, while others are more cautiously weighing its challenges and risks, and assessing readiness to harness GenAI capabilities,” said Bob Audet, partner at Guidehouse’s Data & AI solutions practice, in a news release. “The journey ahead demands both technological readiness and a vision that comprehensively integrates GenAI into the fabric of organizational strategy and operations.”
The survey findings underscore the critical juncture at which organizations stand today as we face the forthcoming technology revolution. Key insights and findings include:
Large companies ($1B+ in revenue/budget) report that they are extremely likely to invest in GenAI at 2-3 times the rate of smaller organizations
This uneven investment could result in adoption disparities that give large enterprises additional competitive advantages as the benefits and efficiencies of GenAI compound.
Healthcare and insurance industries lead the way
Most healthcare (89 percent) and insurance (88 percent) respondents say their organization is likely to invest in GenAI in the next 12 months. The healthcare and insurance industries have emerged as GenAI front-runners, which could revolutionize patient care and risk assessment.
GenAI as a competitive force
According to 52 percent of respondents, GenAI will have a high or substantial impact on competitiveness; 35 percent anticipate a moderate impact. Respondents expect GenAI to enhance productivity, process automation, and labor efficiency, suggesting a transformative impact on competitiveness across sectors.
Governance and management challenges
Many respondents (72 percent) say GenAI applications are not incorporated into existing data governance and management structures. Organizations of all sizes anticipate a struggle to integrate GenAI into existing governance and process management structures.
Organizations aren’t yet GenAI-ready
Despite the potential, 76 percent of respondents say their organization is not fully equipped to harness GenAI. Obstacles include governance, architecture, training needs, privacy concerns, and a lack of skilled personnel.
“Generative AI offers the potential to radically transform industries, and as organizations prepare to invest in GenAI, strategically aligning their goals with GenAI capabilities will be crucial,” said Steve Wanamaker, CEO of CDO Magazine, in the release. “Our aim is for these survey results to help data and IT leaders harness the potential of GenAI, gauge their organization’s readiness, and define a path forward.”
“As we stand at this technological crossroads, the choices data and IT leaders make today will shape the future of industries and redefine how we interact with and leverage AI, ushering in a new era of innovation and growth,” added Bob Dunmyer, partner at Guidehouse and leader of the Data & AI solutions practice, in the release.
The report shows that organizations that embrace GenAI take meaningful steps toward adoption through informed strategies, ethical practices, a skilled workforce, and judicious investments.
