GenAI Hype Killer: Most Companies Unprepared for Roll Out
Companies see potential but struggle to adapt.
Kudos to Deloitte for publishing a survey that shows, in shocking detail, just how unprepared the majority of corporate users are for GenAI.
Deloitte is far more diplomatic and calls this “striving to scale.” My take is that companies are struggling to adapt to GenAI, and most are facing serious issues that will take longer to solve than Deloitte acknowledges.
This matters because, once again, the survey statistics from the “front lines” of AI deployment do not match what we read from the hype machine. This will eventually filter up to Wall Street, where people will ask, “What happened?”
👉TAKEAWAYS
🔹 67% of organizations we surveyed said they are increasing investments in Generative AI, given the strong value seen to date.
🔹 68% say their organization has moved 30% or fewer of its Generative AI experiments fully into production, while most efforts remain at the pilot or proof-of-concept stage.
🔹 Is your organization “highly prepared” for GenAI: Technology infrastructure (45%) and data management (41%) fared the best, followed by strategy (37%), risk and governance (23%), and talent (20%). (chart above)
🔹 A stunning 23% said they were highly prepared for “GenAI Risk and Governance,” which is fundamental to any system deployment.
🔹 75% of organizations have increased their technology investments around data life cycle management due to Generative AI.
🔹 58% said they were concerned about using sensitive data in models.
🔹 41% of organizations have struggled to define and measure the exact impacts of their GenAI efforts.
🔹 78% of leaders surveyed in Q1 agreed that more governmental regulation of AI was needed.
👊STRAIGHT TALK👊
I do not doubt GenAI’s ability to transform the world, but this is one of several surveys showing how corporations are moving more slowly than the AI hype machine would have you believe.
One statistic that stunned me was that only 23% of companies surveyed felt prepared for GenAI risk and governance.
As Deloitte accurately points out, risk and governance are as important as the technology in rolling out GenAI. Without these safeguards, companies couldn’t roll-out a Gen AI application if they wanted to.
One stat that bothered me less than Deloitte was that fewer than 30% of experiments go into production. In the innovation business, this is a very high percentage! That GenAI doesn’t work for 70% of the experiments seems perfectly normal!
One final statistic that made me happy was that 78% of the respondents wanted more GenAI regulation!
So the next time someone in government or big tech says that GenAI regulations are unwanted, think again!
AI is poised to do great things, but not until companies are ready.
Until then, dismiss the hype and believe surveys like this.
Thoughts?
Two recent articles that show GenAI’s hype problem:
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