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Data and risk remain key challenges to scaling GenAI

October 9, 2024

The Deloitte AI Institute unveiled the third quarterly edition of its State of Generative AI in the Enterprise report, revealing the current landscape of GenAI adoption and deployment and how organizations are overcoming barriers to create value at scale. The report is based on a survey of 2,770 director- to C-suite-level respondents across 14 countries.

According to the authors, GenAI adoption has reached a critical phase, with two-thirds of respondents (67%) reporting their organization is increasing its investment in GenAI due to strong value to date. Despite these expectations for transformational impact, data, scaling and risk challenges are limiting options and tempering leadership enthusiasm.

Demonstrating the value of GenAI deployments to the C-suite will be critical for continued investment as a majority (54%) of organizations are seeking efficiency and productivity improvements, yet only 38% are tracking changes in employee productivity. “Now more than ever, change management and deep organizational integration are critical to overcoming barriers, unlocking value and building for the future of GenAI,” said Jim Rowan, Applied AI leader and principal at Deloitte Consulting LLP.

Excitement is being tempered by reality — and value-led use cases will lead to successful scaling

Survey respondents say that while their senior executives and board members are still intrigued by GenAI, there are signs of enthusiasm beginning to wane as the “new technology” shine wears off. Interest remains “high” or “very high” among most senior executives (63%) and boards (53%); however, those numbers have declined since the Q1 2024 survey, dropping 11 percentage points and eight percentage points respectively. 

While selecting and quickly scaling the GenAI projects with the most potential to create value is the goal, many GenAI efforts are still at the pilot or proof-of-concept stage, with a large majority of respondents (68%) saying their organization has moved 30% or fewer of their GenAI experiments fully into production. 

The top benefits of GenAI are extending beyond improved efficiency, productivity and cost reduction, with more than half pointing to increased innovation, improved products and services, enhanced customer relationships and other types of value. The diversity of these value sources underscores the immense potential and versatility of this transformative technology,” concludes Costi Perricos, Generative AI leader at Deloitte Global.

Source: Deloitte US