Businesses planning major investments into Generative AI to increase productivity

A new report from Cognizant and Oxford Economics New Work, New World: Quantifying Global Gen AI Momentum suggests that firms are planning major investments into generative AI technologies to drive increases in productivity, but are still being cautious about their impact. Additionally, 76 percent of businesses say they are looking to leverage the technology to create new revenue streams, while 58 percent are incorporating revenue increases into their business cases.

In terms of readiness and business cases, the companies surveyed indicated that they plan to invest an average of $47.5 million in generative AI this financial year. Most funding is expected to come from IT and technology budgets, with contributions also from marketing and R&D. Furthermore, the survey highlights a commitment to workforce transformation, with 54 percent of companies planning to upskill workers to address skills gaps and 44 percent seeking to transition displaced workers to new roles.

Despite the enthusiasm for adopting generative AI, businesses also recognise the challenges of scaling the technology. Only 26 percent of companies have implemented cross-enterprise use cases, and there is widespread concern that delays in adoption could give competitors an advantage. Globally, 70 percent of companies say they are not moving fast enough while 82 percent suggest that that same delay in execution could place them at a competitive disadvantage. The data also points to the need for outside expertise to help with AI adoption, with 43 percent of companies indicating they plan to work with external consultants to develop a plan for generative AI.

The survey, conducted in June 2024, includes insights from 2,200 executives spanning 23 countries and 15 industries, offering a view of how leaders plan to integrate generative AI into their businesses with the goal of driving significant productivity gains and growth. The analysis introduces a “momentum score,” derived from analysing factors that could either inhibit or accelerate business adoption of generative AI within each country, from the regulatory environment and local infrastructure to the cost of capital and talent availability. North America leads with a momentum score 15 percent above the global baseline and indicating a bullish outlook, while EMEA and APAC trail behind at -4 percent and -14 respectively, indicating a more cautious approach.

Methodology of the survey: Cognizant partnered with Oxford Economics to design and conduct a survey of 2,200 C-suite and senior executives, including individuals at the C-suite and VP levels, from large corporations around the world. The focus was on those who play a significant role in shaping, contributing to or making final decisions on their organization’s generative AI strategy. The survey was conducted in June 2024 via computer-assisted telephone interviewing (CATI).

Countries: Australia, Belgium, Canada, Denmark, Finland, France, Germany, Iceland, India, Ireland, Japan, Luxembourg, New Zealand, Norway, Saudi Arabia, Singapore, Spain, Sweden, Switzerland, The Netherlands, United Arab Emirates, United Kingdom, United States

Industries: Banking and Financial Services, CMT, Energy and Utilities, Healthcare, Insurance, Life Sciences, Manufacturing, Public Sector, Resources (Mining & Oil), Retail, Transport and Logistics