Generative AI (GenAI) has swiftly transitioned from a novel concept to a vital business tool. This year, data, analytics, and IT leaders are embracing its potential to drive innovation and solve critical business challenges. A just-released survey conducted by Dataiku and Databricks, involving 400 senior AI professionals from leading global companies, offers a comprehensive look at how GenAI is reshaping industries and delivering value.
The report dives into the deployment of GenAI across various sectors, highlighting trends in utilization, investment strategies, ROI, and operational challenges. By examining year-over-year developments, it provides a clear view of how organizations are navigating the complexities of integrating GenAI into their operations. We’ve pulled out five of the most interesting stats, but check out the link below for the full report.
90% of Organizations Are Investing in GenAI
The Surprise: While it's no secret that GenAI is a hot topic, the sheer ubiquity of investment is staggering. Ninety percent of surveyed organizations are putting money into GenAI, either through dedicated budgets or as part of their IT, data science, or analytics spending.
What It Means: GenAI has rapidly transitioned from an emerging technology to a cornerstone of modern business strategy. Companies that aren't investing in GenAI risk falling behind their competitors who are leveraging this technology to drive innovation and tackle critical business challenges.
48% of Senior AI Professionals Will Spend Over $1M on GenAI in the Next 12 Months
The Surprise: Beyond that, 10% plan to spend more than $10 million within the next 12 months and one-third (33%) have created new budget lines specifically for GenAI projects.
What It Means: This financial commitment signals a strategic shift as companies move beyond exploration to full-scale implementation, highlighting the central role GenAI is playing in business transformation. It also supports a level of confidence in the potential returns of GenAI investments.
65% of Organizations Are Seeing Positive ROI From GenAI Investments
The Surprise: Of the respondents who have deployed large language models (LLMs) or GenAI models in production, almost two-thirds are already seeing positive returns on their investments.
What It Means: This high percentage of positive ROI is pretty remarkable for a relatively new technology. It indicates that, when implemented effectively, GenAI can deliver tangible business value across various use cases and industries. However, it also raises questions about how organizations are measuring ROI for these new technologies. It’s important for organizations to ensure that their investments deliver real value and that costs do not eclipse the benefits.
85% of Respondents Are Using or Exploring Hosted LLM Services Like OpenAI
The Surprise: An overwhelming majority of respondents are either already using or actively exploring hosted LLM services like OpenAI, which shows a pretty swift adoption of a relatively new technology. For 85% to already be using these services in production or exploration shows a pretty high uptake for an emerging technology, revealing strong adoption across diverse business contexts.
What It Means: The high adoption rate of hosted LLM services suggests that many organizations prefer the ease of integration and broad acceptance of these platforms. However, it also indicates potential concerns around data privacy and customization, which may drive future interest in self-hosted or custom solutions.
AI Sentiment Shifts Toward Pragmatism
The Surprise: This one is not a total surprise at all but still worth sharing: Public perception of AI is stabilizing, with a notable decrease in extreme views. The percentage of respondents feeling more excited than worried about AI has dropped from 8% to 6%, while those feeling more worried than excited has fallen from 10% to just 4%.
What It Means: Extreme views — both excitement and worry — have decreased, indicating that organizations are adopting a more balanced and pragmatic approach to AI integration. However, when it comes to GenAI specifically, reactions remain strong, with 28% viewing it as a revolutionary force that will fundamentally change the way we work.
5 Next Steps for AI Leaders in 2024
- Investment is crucial: With such widespread adoption, organizations not investing in GenAI risk falling behind. Consider creating a dedicated GenAI budget if you haven't already.
- ROI is achievable: The high percentage of positive ROI for GenAI projects in production suggests that well-planned GenAI investments can pay off. However, it's crucial to establish clear metrics for measuring the impact of your AI initiatives.
- Explore diverse AI solutions: While hosted LLM services are popular, don't overlook other options like self-hosted models that might better suit your specific needs and address privacy concerns.
- Bridge the knowledge gap: With many leaders still not fully grasping AI's implications, there's a clear need for better education and communication about AI technologies at all levels of the organization.
- Prepare for scaling: The high levels of investment suggest that many organizations are preparing to scale their AI operations. Ensure your infrastructure and team are ready for this growth.
As we continue to navigate the rapidly evolving world of AI, staying informed about these trends and learning from industry leaders will be key to successful implementation and maximizing the value of this transformative technology.