Not one organisation has decreased investment in Gen AI, finds Capegemini report

Organisations are embracing Generative AI (Gen AI) with 80% of them increasing their investments from 2023, while 20% of organisations are maintaining their investment level, and not one organisation has decreased their investment from last year.  In addition, nearly 24% of organisations have integrated Gen AI into some or most of their operations, an acceleration from 6% last year. This is according to a study titled "Harnessing the value of Generative AI 2nd edition" by Capegemini research institute. 

This increase in Gen AI is witnessed across all sectors. For example, in retail, implementation increased to 40%, more than doubling from 17% in 2023. 

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Over the past year, adoption of Gen AI has grown across functions too including IT (27%), risk management (26%), logistics (26%), sales operations (25%), finance (25%), human resources (24%), sustainability (22%), product design (19%) and marketing (19%).   Since implementing Gen AI, surveyed organisations have noticed improvements in productivity, customer engagement and satisfaction, operational efficiency, increase in sales and decrease in cost too. 

Moving forward, a significant majority (74%) of organisations across sectors agree that Gen AI will drive revenue and innovation, an increase from 60% last year. The high-tech sector (96%) leads the way in acknowledging this, added the study. 

That said, to fully harness the power of Gen AI, there is a need for significant alterations to data collection, storage, retrieval, reusability, and governance.

This is especially since much data remains trapped in silos, with only half of organisations possessing clear processes for integrating data across functions. In fact, only 51% of data executives say that their organisation has clear processes to manage siloed data and data integration across functions.

Moreover, 49% of data sources are in the cloud, with the remainder still residing in local servers, posing accessibility challenges. Meanwhile, most organisations (87%) have yet to utilise external data sources for Gen AI initiatives too. In tandem, fewer than half (46%) have documented policies around sourcing, usage, access, processing, and security of data specifically for Gen AI, said the report.

Crucially, 61% of data executives report their organisations lack the necessary expertise to transition into data-powered entities.

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