Executive summary
Generative AI burst on to the scene only recently, yet businesses are already exploring
its transformative potential
Generative AI burst on to the scene only recently, yet enterprises are already aggressively exploring its transformative potential.
Unlike previous innovations such as blockchain or metaverse, consumer versions of generative AI are widely available and accessible, led by OpenAI’s ChatGPT and DALL-E, as well as Midjourney and Microsoft’s Copilot. The combination of lucrative benefits and early access has driven rapid enterprise adoption, reminiscent of Google’s launch in 1998.
However, a large gap exists between employees tinkering with consumer tools and business value at scale, through authorization, integration, and formal use. Our research surveyed 1,000 US and Canadian businesses to understand the extent of generative AI implementation — and early indications on its ability to deliver value.
We found that organizations are serious about generative AI, and the level of investment reflects this.
In the 12 months since ChatGPT’s release, we estimate that companies in Canada and the US have invested $3.3 billion in generative AI initiatives, and we forecast this to jump 67% to $5.6 billion in 2024.
This view is further reinforced by the prevalence of CEOs and boards of directors who sponsor and govern generative AI initiatives. Unlike previous innovations, executives cite C-suite alignment and funding as the least of their AI deployment challenges.
Also surprising, we found companies with more than $10 billion revenue are more likely to adopt generative AI and claim business value from these initiatives.
This contradicts the traditional stereotype that smaller, more nimble organizations adopt new technology faster. Larger companies seem to outpace smaller ones to extract value due to low entry barriers and opportunity costs to engage with generative AI.
Another surprise from our study is that adoption levels are highest in the healthcare and life sciences sectors, closely followed by financial services. These highly regulated industries tend to be laggards in digital and innovation adoption. This is particularly revealing when compared to high-tech companies, which rank fourth in adoption yet do show the highest likelihood to generating value from generative AI.
Hype is one area where generative AI certainly aligns with expectations – and the potential for disillusionment if the technology fails to meet initial inflated expectations.
Interestingly, most businesses see generative AI as a tool for business growth, efficiency, and improving user experience and personalization — outcomes that have yet to be proven at scale. Conversely, few businesses see generative AI as a tool for content creation and creativity – its leading consumer application to date.
Combine this expectation mismatch with data challenges as well as ethics and bias risks, and we predict many businesses will face a harsh reality check in the coming year.
Executive Summary
Generative AI Radar 2023: North America
