Dive Brief:
- More than half of enterprises are allocating up to 10% of tech budgets to AI as the adoption clock ticks, according to a Genpact and HFS Research report published Wednesday.
- Executives have set aside dedicated funds for generative AI as well as redirected funds from IT infrastructure and software development to support the cause, the joint survey of 550 decision-makers found.
- The survey findings suggest “a pressing sense of urgency” among enterprises, Sreekanth Menon, global AI/ML practice head at Genpact, said in an email. Leaders are prioritizing generative AI adoption now to capitalize on early-mover advantages, such as enhanced productivity, innovation and market differentiation, Menon said.
Dive Insight:
CIOs are under pressure to turn AI experiments into operation-enhancing initiatives that augment work, just 18 months after ChatGPT’s public debut. While multiple roadblocks stand in the way of enterprise progress, tech leaders are working to clear a path.
Businesses have a two-year window to capitalize on generative AI before competitive disadvantages will emerge, according to Genpact’s report.
“Most believe waiting beyond this period could result in missed opportunities and a catch-up game with competitors who have already integrated these advanced technologies,” Menon told CIO Dive.
Most organizations have a lengthy list of to-do’s. Data practices, implementation strategies and demonstrating the value of AI projects are all works-in-progress for the average business.
"The challenge for most enterprises is they remain anchored in proofs of concept that can be impressive, but rarely reach operational scale,” Menon said in the report.
The initial buzz around emerging technologies can often push companies to overestimate early benefits and underestimate long-term effects. More than half of Genpact’s respondents cautioned organizations against emphasizing productivity gains at the expense of broader business targets.
The full enterprise effect of generative AI remains to be seen, but CIOs are in a unique position to help their organization reach their goals.
