Enterprise Spending on GenAI Expected to Rise 50% in 2025, as Focus Shifts From Efficiency to Expertise
Enterprises expect a significant share of ROI on GenAI initiatives to come in 2025
ISG will present the findings of its ISG State of Applied Generative AI Market report here today at the 2024
While GenAI is being tested and used in many business domains, the most well-funded use cases are focused on driving value for customer-facing work. The study shows efficiency, in the form of saving time and driving faster resolutions, is the primary enterprise motivation for implementing GenAI, followed by business growth, cost savings, customer service and innovation.
To achieve those efficiencies, 28 percent of companies say they are applying GenAI to customer service chatbots, with other top uses being business process workflow management (21 percent), customer service support (19 percent) and contact center management and monitoring (15 percent).
“Enterprises are currently using GenAI to make their processes and workflows faster,” said
The study predicts enterprise spending on GenAI initiatives will increase by 50 percent in 2025, as companies expect to achieve a greater share of their return on investment (ROI) in the technology in the coming year. For instance, 17 percent of organizations expect to capture efficiency ROI in 2024, while more than three times as many – 54 percent – expect efficiency ROI in 2025. Similarly, 18 percent expect customer service ROI in 2024, rising to 58 percent in 2025. The research results showed similar jumps in expected ROI for innovation, cost savings and business growth.
The biggest portion of enterprises that are exploring GenAI (43 percent) are currently in the live pilot or trial stage. Eight percent of enterprises are still evaluating tools and providers, 7 percent are in the testing phase, 27 percent are moving towards full production and 15 percent are fully in production.
“Enterprises want significant, large-scale wins from GenAI rather than numerous minor victories. Despite promising results from pilot projects, the size of these efforts is often marginal,” Hall said. “AI tools are currently deployed with a ‘human in the loop’ to manage and validate output before it is delivered to customers. This is an important quality control measure, but it limits the ability of enterprises to scale GenAI and realize meaningful return on investment.”
While the ability to operate GenAI without the constraints of humans in the loop would open the door to returns that scale in a non-linear way and to investments in applications that focus on growth and new products, Hall said enterprises are taking a safe, liability-limiting approach to GenAI for now.
“We expect enterprises will continue to diversify GenAI usage across human-in-the-loop use cases and embrace AI-driven services that incorporate efficiency improvements,” Hall said. “Over the longer term, enterprises will need to make further technical progress and better understand the associated risks before they begin trying use cases with greater scale and ROI.”
Additional information on the ISG State of Applied Generative AI Market report is available on the ISG website.
About ISG
ISG (
View source version on businesswire.com: https://www.businesswire.com/news/home/20240923150960/en/
Press:
+1 203 517 3119
will.thoretz@isg-one.com
+1 978-518-4520
isg@matternow.com
Source: