Capgemini: Enterprise Investment in Gen AI Now Entrenched
Gen AI is not only here to stay, but expand, according to a recent report by consulting company Capgemini that shows a surge in adoption and increase in investment across organisations globally.
The global study, which surveyed 1,100 executives employed at organisations with more than US$1bn in annual revenue and across 11 sectors, highlighted just how entrenched the tech has become in enterprises.
Of the organisations surveyed, 96% have started to at least explore Gen AI, with 97% allowing employees to use Gen AI in some capacity.
Gen AI adoption
This highlights how employees are often leading the way in terms of augmenting their work with AI without leadership implementation strategies.
Yet unlike individual employees, who often utilise Gen AI for workflow optimisation, this interest from enterprise shows a realigning of how they view the tech.
“Rather than solely focusing on cost optimisation, businesses are actively exploring new avenues to leverage its capabilities and drive value creation,” Pascal Brier, Chief Innovation Officer at Capgemini and Member of the Group Executive Committee says commenting on the study.
Early adopters have already begun reaping benefits, with the study highlighting a 6.7% improvement in customer engagement and satisfaction over the past year in the areas in which the technology has been piloted or deployed.
This substantial uptick in investment is not merely a speculative trend but a strategic move yielding tangible benefits.
A whopping 74% of organisations highlighted that Gen AI is helping them drive revenue and innovation. It’s therefore no wonder 80% of those surveyed said they have increased their year-on-year investment in Gen AI.
Investment on the AI ecosphere
This burgeoning interest and increased investment is pushing Gen AI development to better and better heights.
Already since release, we have seen Gen AI platforms go from text or code generation only to now include photo creation and video creation.
Equally, the AI arms race has seen those in the sphere compete to offer more services at a cheaper cost. Smaller models from market leaders like Anthropic and OpenAI can now offer businesses users much of the same performance for specific use cases but for a fraction of the cost they were previously paying.
“As investment increases, the rise of more complex, autonomous AI systems signals a new era of Gen AI that could impact the way companies operate,” Pascal stated.
A 2023 end-of-year report by professional services company Sikich revealed that that one-fifth of manufacturing executives have no plans to incorporate AI into their operations. Yet, growth in AI systems and therefore use cases could further widen the net for companies who now see its utility.
Future outlook
The rapid adoption and investment in Gen AI are driven by its potential to transform various aspects of business operations.
Organisations, after only a year or so of experimentation, are realising concrete benefits and thus its place as an area of investment is entrenched across enterprises.
As organizations continue to explore and leverage its capabilities, that position can expect to be further solidified by the extra innovations and the investment in AI ushers in.
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