While generative AI (GenAI) technology continues to advance at an incredible speed, organisational change has been hard work, with more than two-thirds of respondents reporting that 30% or fewer of their experiments will be fully scaled in the next three to six months, according to the Deloitte AI Institute.
Despite longer-than-expected time to value, nearly three-quarters of respondents reported that their most advanced GenAI initiative is meeting or exceeding return on investment (RoI) expectations, Deloitte analysts write in the latest "State of Generative AI in the Enterprise" report. Cybersecurity and IT functions are leading the way in terms of RoI and successful scaling.
Agentic AI is seen as a key enabler of sustainable value, with 26% of organisations currently exploring autonomous agent development to a large extent, despite key barriers of regulatory uncertainty and risk management.
The fourth quarterly edition of the report is based on a survey of 2,773 director- to C-suite-level respondents across 14 countries. While respondents have a range of GenAI expertise, all are experienced with AI and are piloting or implementing GenAI in their organisations.
The report features case studies covering how GenAI is boosting software security in banking, as well as how it is accelerating sales success in the technology industry and powering social media content creation in the consumer industry.
"GenAI use cases are rapidly proliferating in leading enterprises across industries," said Joe Ucuzoglu, chief executive officer of Deloitte Global. "We are seeing a shift as leaders move past the initial hype to strategically deploying GenAI in the core of their businesses.
"Focus is essential, prioritising demonstrated use cases with measurable return on investment," he added.
SLOWER BUT STEADY
Adoption of GenAI is moving at the speed of business, not the speed of technology, the Deloitte survey found.
The initial fervour for GenAI has gradually given way to a positive yet pragmatic mindset among business leaders. More than two-thirds of respondents say that 30% or fewer of their experiments will be fully scaled in the next three to six months, revealing that no matter how quickly the technology advances -- or how hard the companies producing GenAI technology push -- organisational change in an enterprise can only happen so fast.
Despite this, a vast majority of respondents (78%) expect to increase their overall AI spending in the next fiscal year -- a positive outcome in terms of helping organisations move past the hype cycle and take time to test where the capabilities of GenAI can help the most.
Concerns about regulatory compliance have emerged as the top barrier holding organisations back from developing and deploying GenAI tools and applications -- increasing by 10 percentage points from the Wave 1 survey (28%) to Wave 4 (38%), Deloitte said.
Sixty-nine percent of respondents say fully implementing a governance strategy will take more than a year to resolve, underscoring the need for perseverance and a strategic approach to setting the correct governance foundation.
To act decisively in the face of uncertainty, organisations should focus on market sensing and scenario planning, with an eye on uncovering potential blind spots in their strategies and make more informed decisions.
A strategic shift is emerging, from technology catch-up to competitive differentiation with GenAI, and return on investment for organisations' most advanced (scaled) GenAI initiatives has been generally positive.
Almost all organisations report measurable RoI, and almost a quarter (20%) report 31% or more from GenAI. GenAI usage in IT appears to be furthest along, with 28% saying their most advanced initiative is in that function. Cybersecurity implementations have also emerged as a standout, with 44% saying return on investment has surpassed their expectations, more than any other function.
Despite making strides with centralised governance, phased adoption, collaborative partnerships and continuous iteration, scaling and value creation remain key challenges for organisations.
THE CASE FOR AGENTS
Agentic AI has captured leaders' attention, with 26% of surveyed organisations already exploring autonomous agent development to a large extent and 42% to some extent.
As software systems designed to meet objectives with minimal intervention, agents have the potential to accelerate the creation of long-lasting business value. However, the key barriers currently faced by GenAI -- regulatory uncertainty, risk management, data deficiencies and workforce issues -- still apply and are arguably even more critical due to the increased complexity of agentic systems.
"Amid the promise of AI agents and the evolution of foundational models, future-thinking organisations are as bullish as ever in building bridges to return on investment, all while understanding the need for nuance -- and patience -- as we embrace this next wave of GenAI," said Jim Rowan, applied AI leader and principal with Deloitte Consulting.
"Anticipation is high, and now is the time for leaders to take the long view of their GenAI investments, with a focus on governance, collaboration and continued iteration as key accelerators in the race for sustainable value."
To read the full report, visit https://tinyurl.com/342ryfxf
