Generative AI (GenAI) is here to stay as firms across 25 different countries and 12 industries have noted the impact the technology will have on customer experiences, revenue and decision making according to new research from global management consultancy, Kearney. However, only 40 in 1,000 firms actually qualify as a ‘leader’ in the field.
In its research, titled 2024 Global AI Assessment (AIA), Kearney reveals that firms are investing in AI, big data and analytics, with companies increasing their GenAI budgets by 22 per cent. In fact, GenAI now constitutes more than a quarter (26 per cent) of their total data and analytics budgets.
Businesses are looking at the long-term, bigger picture: more than three-quarters of organisations (77 per cent) anticipate that GenAI will improve customer experience. They also believe it will boost future revenue by making processes more efficient (76 per cent), helping them make better decisions.
Struggling to keep up
Nonetheless, many organisations are still struggling with the technology. In fact, 33 per cent have not yet started implementing the tech or identified use cases for it.
Furthermore, 51 per cent of companies have immature AI and analytics capabilities. While these organisations may have developed strategies and identified use cases for analytics and AI, they are struggling to build, scale, and sustain the necessary capabilities.
Most companies still lack the AI and analytics capabilities needed for meaningful results. Just under half (45 per cent) cited a lack of technical expertise as a major barrier to GenAI adoption. This lack of expertise leaves a large portion of businesses unable to fully leverage AI’s advantages.
Not all doom and gloom
Encouragingly, an almost equal percentage of companies (49 per cent) enjoy more mature AI and analytics capabilities, with four per cent established as leaders. These leaders demonstrate advanced AI integration, with 47 per cent adopting AI-specific governance tools compared to three per cent of laggards. Additionally, 72 per cent of AI and analytics initiatives in the ‘leaders’ category are supported by the C-suite, showcasing their competitive advantage and readiness for the next evolution in AI.
Bharath Thota, partner at Kearney
Bharath Thota, partner at Kearney said: “These findings reveal a critical divide. Many businesses are lagging behind, stuck with immature AI capabilities, struggling with disjointed data, and missing out on its benefits as a result. It’s time for these companies to act—falling behind is not an option in this fast-evolving landscape.
“By comparison, for the successful companies, a strong AI and analytics strategy is inseparable from business outcomes and demands continuous tracking for tangible results, which ultimately sets them apart from the competition.”
Ramyani Basu, partner at Kearney
Ramyani Basu, partner at Kearney added: “AI will not replace humans, but it will fundamentally change the way we work, promising a revolution greater than the Internet. But remember, this is like 1995, not 2005; we are at the start of the AI journey, and like the early years of the Internet, we must be data-informed, leveraging human creativity to expand AI’s capabilities.
“AI adoption requires a cultural shift toward experimentation. Companies need to prioritise agility, embrace failures, and concentrate on practical, real-time results to adapt and sustain growth. Now, with GenAI taking AI to the next level, the opportunities for companies to leverage data to drive innovation and competitive advantage are virtually endless.”
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