According to a business survey by Tata Consultancy Services, companies are enthusiastic about implementing artificial intelligence into their businesses, but almost three-quarters (72%) say they need a better way to evaluate its adoption.
A survey by tech giants reveals that businesses have a strong desire to become “AI-ready,” but they are yet to figure out key aspects such as modernizing their operating models and how to most effectively measure the success of their AI adoption.
In its research, the company defined AI as generative AI, as well as more established AI tools such as predictive analytics, forecasting, machine learning, simulation, robotics, and other similar techniques.
Company executives say they need to show that their investments in generative AI are substantiated by performance metrics or risk losing budgets. It's worth pointing out that given the rapid pace of technological development, it's not surprising that there are no standardized, appropriate evaluation metrics.
Businesses understand that AI is coming and that it will change the way they do business, so much so that 55% of companies surveyed by TCS said they are changing their business models, offerings and sales methods.
But that's another thing from adapting AI to your business, where only 17% of companies are discussing the technology and making plans across their enterprise.
Companies around the world are racing to be at the forefront of AI for the benefits they can reap in the coming years. The revenue potential of the genAI industry is expected to increase significantly within the next decade. A Bloomberg Intelligence report last year estimated that the GenAI market size is expected to grow from $40 billion to $1.3 trillion in 2022.
But building large language models is a costly endeavor: OpenAI’s ChatGPT-4 cost $78 million to train, and Google’s Gemini Ultra cost about $191 million to train, according to Stanford University’s AI Index Report 2024. Despite this, 51% of enterprises said they plan to build their own enterprise-specific models.
To avoid costs, companies are turning to companies that can leverage their technology expertise: According to a TCS survey, 23% of non-tech companies outsource all or most of their AI implementations to external vendors; for tech companies, that number rises to 27%.
It's no surprise that a number of AI-focused startups are popping up: Stanford University reports that private investment in the sector is set to grow eightfold from 2022 onwards, to $25.2 billion.
TCS released the TCS AI for Business survey shortly after its Q1FY25 earnings report and interviewed 1,272 companies across 12 industries and 24 countries. Of those surveyed, 16% were CEOs, 35% were division/line of business heads, and 49% were product owners at the VP or SVP level.
