In Q3 2024, generative artificial intelligence (Generative AI) in the enterprise environment shows significant progress but notable adoption and scalability challenges. According to Deloitte's latest report, based on a survey of 2,770 executives from various industries and countries conducted between May and June 2024, companies are increasing their investment in generative AI, driven by promising early results. However, there are still significant difficulties in scaling these advances.
The report highlights that two-thirds of companies surveyed have increased their investment in generative AI due to the substantial benefits. Companies have cited efficiency gains, productivity increases, and cost reductions as the main benefits. Nevertheless, around 70% of companies have only successfully implemented 30% or less of their experiments with generative AI in production environments. This highlights the large gap between the initial potential and the full implementation of these projects.
Key barriers to scalability include data management and readiness to comply with new regulations. Fifty-five percent of organizations said they avoid certain use cases of generative AI due to data-related issues such as privacy, security, and data quality concerns. In addition, only 23% of organizations feel well prepared to address the risk management challenges associated with generative AI, indicating an urgent need to strengthen governance frameworks.
Investing in data and governance
Modernizing data infrastructures is critical for companies to take full advantage of generative AI. Seventy-five percent of organizations surveyed have increased their investment in data lifecycle management, focusing on improving security and data quality. However, persistent data architecture and privacy management issues continue to limit the potential of generative AI applications.
In terms of governance, the report finds that companies are taking various measures to manage risk, including creating specific frameworks for using generative AI tools and conducting internal and external audits. However, less than half of companies are implementing these measures, which could affect their ability to scale generative AI initiatives effectively.
Despite the initial enthusiasm for generative AI, many organizations still need help defining and measuring the true impact of their initiatives. Forty-one percent of respondents said they need help to accurately measure the benefits of generative AI accurately, and only 48% use specific key performance indicators (KPIs) to evaluate performance. This lack of rigorous measurement could impact organizations' ability to secure the support and funding needed to scale these technologies.
In addition, only 16% of companies produce regular reports for the CFO on the value created with generative AI. This indicates a need to improve transparency and communication of the performance of these investments.
Recommendations
Looking ahead, Deloitte's report recommends that companies focus on deeply integrating generative AI into their business functions and processes to maximize its value. Model customization and the development of creative and differentiated applications are the most important factors in increasing the value of generative AI initiatives.
The report also emphasizes the importance of establishing clear and robust risk management and governance strategies, including appointing a single executive responsible for these critical aspects. This is important to maintain trust and ensure the responsible use of generative AI.
