Most companies planning to increase their investment towards AI: Report

Generative AI (GenAI) exploded into public consciousness in 2023, promising to transform the way business functions. Despite the potential, however, leaders are struggling to convert hype into reality.

New Delhi: Most companies around the globe are planning to raise their investment towards technology, more so towards Artificial Intelligence (AI), according to a report released on Friday.

According to the report titled ‘BCG AI Radar: From Potential to Profit with GenAI’, 71 per cent of executives surveyed said they plan to increase tech investments in 2024 — an 11-point jump from 2023 — while an even more (85 per cent) plan to increase their spending on AI and GenAI.

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Fifty-four per cent of leaders already expect AI to provide cost savings this year, primarily through productivity gains in operations, customer service, and IT, the report, based on a survey of 1,406 C-level executives in 50 markets and 14 industries, said.

Generative AI (GenAI) exploded into public consciousness in 2023, promising to transform the way business functions. Despite the potential, however, leaders are struggling to convert hype into reality.

According to a report by Boston Consulting Group (BCG), 66 per cent of executives are ambivalent, or outright dissatisfied, with their organisation’s progress on AI and GenAI so far.

This is the year to turn GenAI’s promise into tangible business success, said BCG CEO Christoph Schweizer.

“Almost every CEO, myself included, has experienced a steep learning curve with GenAI. When technology is changing so quickly, it can be tempting to wait and see where things land. But with GenAI, the early winners are experimenting, learning, and building at scale,” he said.

Generative AI is radically reshaping businesses, the report said, adding that leading companies on the GenAI front are planning to realise up to USD 1 billion in productivity gains, and they are already looking at ways to reinvest into new business models and growth.

According to BCG India MD Nipun Kalra, the paradigms of AI and GenAI use are shifting rapidly, with more and more businesses accepting and focusing on how these frontier technologies can help increase productivity and business goals.