Businesses Are Heavily Investing in Generative AI

Corporate Investments in Generative AI

Companies are increasingly investing in generative AI, with expenditures rising to $50 million per year. Bain & Company reveals these insights through their quarterly surveys.

Around 200 organizations participated, showing that companies now invest $5 million on average annually. Approximately 100 employees dedicate time to generative AI, especially large companies doing so.

The Shift Towards GenAI

By early 2024, 87% of companies will be developing, piloting, or deploying GenAI. Pilot programs are mainly in software development, customer service, marketing, and product differentiation.

Nearly 60% see GenAI as a top-three priority over the next two years, yet only 35% have a clear vision for its business value. Technology companies are learning the complexity of GenAI implementation.

Moving Beyond Initial Excitement

Despite challenges, industries are shifting from excitement to realistic assessments. Security concerns and implementation have become more deliberate and informed based on pilot learnings.

Successful use cases include sales, software development, marketing, customer service, and customer onboarding. Legal, operations, and HR applications show less success.

The Buy or Build Dilemma

Companies debate whether to buy or build GenAI solutions. Currently, they prefer buying third-party solutions but tailor them as needed. As third-party tools improve, companies may gravitate more towards buying.

This trend has already begun, with a slight increase in buying off-the-shelf applications. However, some respondents feel these tools need further refinement.

Read the full report from Bain here. Image credit: iStock/imtmphoto.

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