New Deloitte survey finds expectations for Gen AI remain high, but many are feeling pressure to quickly realise value while managing risks
• Three-quarters of respondents expect Generative AI (Gen AI) to transform their organisations within three years
• Only a quarter of leaders believe their organisations are “highly” or “very highly” prepared to address governance and risk issues related to Gen AI adoption
• Only 47% agree that their organisations are sufficiently educating employees on the capabilities, benefits and value of Gen AI
• More than half are concerned that the widespread use of Gen AI will increase economic inequality (51%)
DAVOS, SWITZERLAND, 15 JANUARY 2024 - Building on its annual State of AI in the Enterprise report, today the Deloitte AI InstituteTM is unveiling at the World Economic Forum’s annual meeting, the first wave of a quarterly survey, which explores how actions taken now will guide how Gen AI adoption unfolds and if its benefits are fully realised. The State of Generative AI in the Enterprise: Now decides next is based on a survey of more than 2,800 Director to C-suite level respondents across six industries and 16 countries. While respondents have a range of self-reported levels of Gen AI expertise, all are experienced with AI and are piloting or implementing Gen AI in their organisations.
“We’re in the early days of a major technological transformation with Gen AI beginning to drive a wave of innovation across industries,” says Joe Ucuzoglu, Deloitte Global CEO. “The speed, scale and use cases of Gen AI are breathtaking. Business leaders are under an immense amount of pressure to act, while ensuring appropriate governance and risk mitigation guardrails are in place.”
How early Gen AI experts are driving value
Three-quarters (79%) of respondents expect Gen AI to drive substantial organisational transformation in less than three years. Yet, at the moment, the majority report a strong focus on more tactical benefits, like improving efficiency and cost reduction, rather than things like growth and improving innovation. Like with many new technologies, improving efficiency and productivity was the leading benefit organisations said they were seeking (56%). Areas considered more strategic, like encouraging innovation (29%) and uncovering new ideas and insights (19%) are currently a lower priority.
More than four in 10 (44%) respondents believe they have “high” or “very high” expertise in Gen AI. Among this group, the 9% who report “very high” expertise levels (referred to as early Gen AI experts) reveal how leaders are thinking about and treating Gen AI differently. Nearly three-quarters (73%) of these early Gen AI experts say they are already integrating Gen AI into their product development and research and development, suggesting that they are beginning to use Gen AI for innovation and growth-related purposes. They are also more likely to use Gen AI at a higher rate across business functions.
The early Gen AI experts feel more trust and less uncertainty about the technology and appear to be the most prepared for the changes Gen AI will bring—but they also see greater potential for disruption. For example, compared to respondents with “some level of expertise,” early Gen AI experts are twice as likely to feel that their business or operating model is threatened by the widespread adoption of Gen AI.
Managing talent, governance and risk are top challenges with Gen AI adoption
Respondents report feeling generally prepared when it comes to strategy and technology infrastructure, but they have lower confidence related to talent, governance and risk, which are seen as significant barriers to AI adoption.
In fact, respondents cite lack of technical talent and skills as the single biggest barrier to Gen AI adoption. Only 22% of respondents believe their organisations are “highly” or “very highly” prepared to address talent-related issues related to Gen AI adoption. And many are not yet focused on education and reskilling—only 47% of organisations agree that they are sufficiently educating their employees on the capabilities, benefits and value of Gen AI. The early Gen AI experts, however, are much more likely to focus on educating and reskilling their workforce and to focus on recruiting and hiring technical talent to drive Gen AI initiatives. For example, 74% of respondents with “very high” Gen AI expertise say they are educating their workforce versus 27% of respondents with “some” expertise.
Similarly, governance and risk are barriers to Gen AI adoption. Only a quarter (25%) of leaders believe their organisations are “highly” or “very highly” prepared to address governance and risk issues related to Gen AI adoption. Respondents’ biggest concerns related to governance are: lack of confidence in results (36%); intellectual property concerns (35%); misuse of client or customer data (34%); ability to comply with regulations (33%); and lack of explainability/ transparency (31%).
Leaders worry that Gen AI will drive greater economic inequality
Although the leaders surveyed are generally excited and enthusiastic about Gen AI’s potential business benefits, they are less optimistic about its broader societal impacts. More than half of respondents expect widespread use of Gen AI to centralise power in the global economy (52%) and increase economic inequality (51%). Additionally, 49% of respondents believe the rise of Gen AI tools/applications will erode the overall level of trust in national and global institutions.
To help address these concerns, the majority of respondents agree there is a need for more global regulation (78%) and collaboration (72%) to manage the responsible widespread adoption of Gen AI.
"Today, Gen AI is at an inflection point where organisations are just beginning to recognise its potential but are yet to see it as a growth catalyst for business. Organisations need to consider Gen AI in conjunction with other AI and technology tools to drive business growth," says Deborshi Dutt, Artificial Intelligence Strategic Growth Offering lead and principal, Deloitte Consulting LLP. "To help accelerate their path to Gen AI value, organisations should start to reimagine and reinvent how they conduct business to stay ahead in this transformative landscape, while managing risks appropriately. This will require increased collaboration across organisations to foster trust in the responsible and widespread adoption of Gen AI and a strong focus on education and reskilling people for how this technology is expected to alter how we each work, learn and collaborate."
To read the full report please visit: deloitte.com/us/state-of-generative-ai
About the State of Generative AI in the Enterprise
This is the first of a series of quarterly surveys intended to track the integration of Gen AI in the enterprise. This research builds from Deloitte’s previous State of AI in the Enterprise report which has been running for six years now. This wave of the survey, conducted between October 2023 and December 2023, connected with more than 2,800 AI-savvy business and technology leaders directly involved in piloting or implementing Gen AI at major organisations across 16 countries and six industries including Consumer, Energy, Resources & Industrials, Financial Services, Life Sciences & Healthcare, Technology, Media & Telecomm and Government & Public Services.
The next wave of this survey will continue to track the integration of Gen AI in the enterprise and will include a deeper focus on innovation, enterprise transformation and trust.
About Deloitte
“Deloitte,” “us,” “we” and “our” refer to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte’s approximately 415,000 people worldwide make an impact that matters at www.deloitte.com.
About Deloitte Legal
Deloitte Legal means the legal practices of DTTL member firms, their affiliates or their related entities that provide legal services. The exact nature of these relationships and provision of legal services differs by jurisdiction, to allow compliance with local laws and professional regulations. For legal, regulatory and other reasons, not all member firms, their affiliates or their related entities provide legal services or are associated with Deloitte Legal practices.
About University of California Health
University of California Health is one of the nation’s largest academic health systems. It is comprised of six academic health centers, six medical schools, and 13 health professional schools. Each year, it provides care to more than 375,000 people through its emergency departments, admits more than 172,000 people for inpatient care and provides more than 7.6 million outpatient visits.
About the IOC
The International Olympic Committee is a not-for-profit, civil, non-governmental, international organization made up of volunteers which is committed to building a better world through sport. It redistributes more than 90 per cent of its income to the wider sporting movement, which means that every day the equivalent of USD 3.4 million goes to help athletes and sports organizations at all levels around the world.
About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make factbased decisions on technology purchases and business strategy. More than 1,100 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For 50 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology
media, research, and events company.
MuleSoft is a registered trademark of MuleSoft, Inc., a Salesforce company. All other marks are those of respective owners.
About Deloitte Asia Pacific
Deloitte Asia Pacific Limited is a company limited by guarantee and a member firm of DTTL. Members of Deloitte Asia Pacific Limited and their related entities, each of which are separate and independent legal entities, provide services from more than 100 cities across the region, including Auckland, Bangkok, Beijing, Hanoi, Hong Kong, Jakarta, Kuala Lumpur, Manila, Melbourne, Osaka, Seoul, Shanghai, Singapore, Sydney, Taipei and Tokyo.
This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms or their related entities (collectively, the “Deloitte organization”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser.
No representations, warranties or undertakings (express or implied) are given as to the accuracy or completeness of the information in this communication, and none of DTTL, its member firms, related entities, employees or agents shall be liable or responsible for any loss or damage whatsoever arising directly or indirectly in connection with any person relying on this communication. DTTL and each of its member firms, and their related entities, are legally separate and independent entities.
Gartner Disclaimer
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Gartner, Magic Quadrant for SAP S/4HANA Application Services, Worldwide, 27 June 2022, Jaideep Thyagarajan, Fabio Di Capua, Peter Adamo, Luis Pinto, Allan Wilkins
Gartner, Critical Capabilities for SAP S/4HANA Application Services, Worldwide, Worldwide, 27 June 2022, Peter Adamo, Fabio Di Capua, Luis Pinto, Jaideep Thyagarajan, Allan Wilkins
GARTNER and Magic Quadrant are registered trademarks and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.
About Deloitte’s Health & Human Services practice
Deloitte brings innovative yet practical solutions to navigate the vastly complex human services market. We seek to protect and provide better outcomes for communities through programs that assist with social welfare, unemployment, and family care as well as physical and mental health. To learn more about our services, visit the Future of Human Services page on Deloitte.com where you can read our latest report, Transforming social care: Moving beyond “better, faster, cheaper”.
Press contact(s):