The 2024 AI at Wharton and GBK Collective report, "Growing Up: Navigating Gen AI’s Early Years," reveals a maturing GenAI landscape with enterprise adoption nearly doubling since 2023. While excitement around GenAI's potential remains high, a focus on proving ROI is emerging. Decision-makers view GenAI more favorably, perceiving its ability to enhance jobs without replacing employees. Despite increased usage, concerns around accuracy, data privacy, integration, and ethical issues persist. Investment in GenAI continues to rise, albeit at a slower pace, as companies prioritize effective internal implementation and adapt organizational structures for long-term sustainability. The report emphasizes the need for measurable ROI, scalable use cases, and clearly defined usage policies to navigate this next chapter of GenAI adoption successfully.

Metadata

  • Type of Content: Report
  • Owner: Wharton AI at Wharton/ GBK Collective
  • Study Scope: 802 senior decision-makers in an enterprise (1000+ employees) within the US, responding to a 15-minute online quantitative tracking survey between July 5 and July 15, 2024.
  • Date Published: October 2024
  • URLs: Announcement, Executive Summary (PDF) Full Report (PDF)

Summary

  • GenAI adoption has nearly doubled since 2023, with 72% of decision-makers reporting weekly usage.
  • Increased experimentation has led to a more favorable sentiment, with fewer concerns about job displacement.
  • Focus is shifting from experimentation to demonstrating measurable ROI and achieving successful implementation.
  • Data analysis, idea generation/brainstorming, and legal contract generation are perceived as top use cases.
  • Accuracy, data privacy, team integration, and ethical issues remain top concerns, though they have softened slightly.
  • Investment in GenAI continues to rise, though at a slower pace, with the majority of companies expecting budgets to increase by 1-10% over the next 2-5 years.
  • Organizations are adapting by expanding teams, adding Chief AI Officer roles, and focusing on internal GenAI strategies.
  • Microsoft and Google are perceived as current and future leaders, with OpenAI and AWS gaining ground.

What makes this novel or interesting

  • GenAI is quickly moving past the "hype" phase and into a phase of practical application and ROI measurement.
  • Smaller companies are adopting GenAI at a faster rate than larger companies, likely due to greater agility and pressure to realize efficiency gains.
  • While concerns about GenAI persist, they are softening as decision-makers gain familiarity with the technology.
  • Investment in GenAI is becoming more strategic, with a focus on training, consulting, and onboarding.
  • Usage policies are still emerging, with larger companies (revenue $2B+) having a higher adoption of policies compared to smaller organizations.

Interesting Chart

Chart: Widespread Use Cases

Verbatim Quotes

  • Productivity: "Our productivity has certainly increased since we started using [Gen AI]. I'm amazed by its power; AI is changing not only my company, it's already changing the world.” Tech/Telecom Leader, $1B - $2B Annual Revenue
  • Impact of GenAI: “The biggest impact of Gen AI will be to augment my capabilities. [It will] automate routine tasks and provide 24/7 support to our customers, freeing me up to focus on [customer] empathy and more complex problem-solving." Banking Leader, $100M - $250M Annual Revenue
  • Marketing & GenAI: "In our marketing department, Gen AI has the biggest impact on creating content and strategy." Leader in Retail, $250M - $1B Annual Revenue
  • GenAI in HR: “[Gen AI] can analyze data, write memos, and make recommendations. It will automate many functions of HR [employees]... and may replace searching, sorting through, interviewing, and even recommending candidates.” Leader in HR, $50M - $100M Annual Revenue
  • GenAI and Employees: "AI will not replace people for certain jobs, but rather enhance employee output... eliminate human error, and improve overall quality." Automotive Leader, $2B+ Annual Revenue
  • GenAI and Employees: "The company is asking its best coders to train the AI, and it’s hard to fathom that this is entirely altruistic. I believe that companies will use AI to replace human workers because it's cheaper." Leader in Technology/Telecom, $250M - $1B Annual Revenue
  • Regulations: "I hope people become much less afraid of AI. I'm quite optimistic about future applications. At the same time, specific regulations need to be in place [for] safety, security, and ethical creation.” Retail Leader, $250M - $1B Annual Revenue
  • What Comes Next: The most successful Gen Al applications and use cases will see higher adoption in the areas of knowledge documentation, fraud, and brainstorming. Today, Gen Al receives the highest performance scores for data analysis/analytics, idea generation/brainstorming, legal contract generation, fraud detection, and email generation. It is in these niche areas where the proliferation of products for Gen Al most likely will occur.

How to report this in the news

GenAI is no longer a futuristic concept; it's rapidly becoming part of our daily work lives. Think of it like the early days of the internet - initially met with excitement and uncertainty but quickly evolving into an essential tool for business. This report shows that companies are embracing GenAI but also proceeding cautiously, focusing on demonstrating its value and addressing concerns around ethics, security, and privacy. The key takeaway is that GenAI is here to stay, and those who adapt quickly and strategically will have a competitive edge.

Detailed Recap

A. For Chiefs of Staff

  • Executive Priorities & Implications:
    • GenAI is a priority: 72% of decision-makers use it weekly.
    • Focus has shifted to ROI: Executives now need evidence of GenAI's tangible benefits.
    • Investment remains strong, but with cautious optimism: Budget increases are expected but at a slower pace, suggesting a focus on efficiency.
    • GenAI is seen as enhancing, not replacing, jobs. Focus on reskilling rather than replacing staff.
    • Organizational adaptation is key: Companies are forming GenAI teams, creating CAIO roles, and restructuring for integration. Chiefs of Staff should support this process.
    • Policy development is lagging: Lack of clear policies on GenAI usage presents both an opportunity and a risk. Chiefs of Staff can help drive policy development in line with best practices and organizational values.
  • Internal Operations & Strategy:
    • GenAI usage is up across all departments, meaning all teams will likely be impacted, not just highly technical ones.
    • Training is crucial: While investment in training is limited to the basics (courses, tools access, pilot projects), it's still a critical component of successful adoption. Chiefs of Staff can advocate for and facilitate employee training.
    • Focus is on core business processes: GenAI is being used for document/proposal creation, data analysis, summarization, and other core business functions.
    • Track ROI and prioritize successful use cases that can scale: This will be crucial for justifying continued investment. Chiefs of Staff can work with department heads to establish clear metrics and track progress.
    • Implement clear internal communication strategy: This can help manage expectations and build employee buy-in.
  • External Partnerships & Vendor Selection:
    • Microsoft and Google are currently the leaders. Be aware of market dominance.
    • OpenAI and AWS are rising stars. Explore alternative vendors.
    • Security, ease of use, and cost are major considerations for platform selection. Consider these factors when evaluating vendor options.
    • Consultancies play a substantial role for some companies. Decide whether external guidance is necessary.
  • Risk Management & Ethical Considerations:
    • Data privacy, bias, and security are top concerns. Proactively address these concerns through policy development and employee training.
    • Ethical considerations are important but may be overlooked due to increased familiarity. Continue to prioritize responsible AI practices.
  • Future Planning:
    • GenAI adoption will continue to evolve rapidly. Be prepared for changes in technology, investment, and regulation.
    • Long-term success depends on finding the right use cases, building organizational capacity, and mitigating risks. Encourage experimentation and learning while maintaining a focus on responsible implementation.
    • Stay updated on latest GenAI developments. Provide briefings and share relevant information with executive team and other stakeholders.
    • Support change management initiatives related to GenAI adoption. This will be critical for ensuring a smooth transition and maximizing the benefits of the technology.

B. For Senior Managers:

  • GenAI adoption is on the rise: GenAI adoption has nearly doubled since last year, with 72% of decision-makers using it at least weekly. This indicates a significant shift towards integrating GenAI into various business functions.
    • You should evaluate how your organization can leverage GenAI for efficiency, productivity, and customer experience improvements.
    • Consider appointing a Chief AI Officer or forming a dedicated AI team to manage strategy and implementation.
  • ROI focus is intensifying: While initial excitement around GenAI persists, there is a growing emphasis on demonstrating measurable ROI.
    • Prioritize identifying and implementing GenAI use cases that can scale and deliver tangible business value.
    • Track and analyze the impact of GenAI on key metrics to justify continued investment.
  • Addressing concerns is crucial: Concerns regarding accuracy, data privacy, team integration, and ethical issues remain.
    • Develop clear usage policies and guidelines to mitigate risks and ensure responsible AI usage.
    • Invest in employee training and awareness programs to address concerns and build trust.
  • Invest strategically: Investment in GenAI is projected to continue but at a slower pace. Companies are focusing on maximizing the value of their investments.
    • Carefully assess your organization's needs and prioritize investments in technology/tools/systems, training, consultants, and hiring based on your specific use cases.
    • Stay informed about emerging vendors and technologies, but avoid chasing every trend. Focus on solutions that align with your long-term strategy.
  • Microsoft and Google lead, but the landscape is evolving: Microsoft and Google are perceived as current and future leaders, but OpenAI and AWS are rapidly gaining ground.
    • Don't assume that established players will always be the best fit. Evaluate vendors based on your specific needs and the evolving capabilities of different solutions.
    • Consider adopting a multi-vendor strategy to leverage the strengths of different platforms.

C. For Developers of AI Solutions:

  • Focus on delivering measurable ROI: Enterprise users are increasingly prioritizing GenAI solutions that deliver tangible business value.
    • Design and develop solutions with clear use cases and quantifiable benefits in mind.
    • Provide tools and resources for users to track and measure the impact of your solutions.
  • Address key concerns: Focus on developing solutions that address accuracy, data privacy, integration, and ethical concerns.
    • Prioritize transparency and explainability in your models and algorithms.
    • Develop tools and features that enhance privacy and security.
  • Specialization is emerging: As the GenAI market matures, there will be a growing need for specialized solutions tailored to specific industries and use cases.
    • Identify niche areas where your expertise can deliver unique value.
    • Develop solutions that seamlessly integrate with existing workflows and systems within specific industries.
  • Training and support are key: Companies are investing heavily in training and onboarding related to GenAI.
    • Develop comprehensive training materials and documentation to support users.
    • Provide ongoing support and resources to help users maximize the value of your solutions.
  • Stay ahead of the curve: The GenAI landscape is rapidly evolving. Keep up with the latest advancements and trends to remain competitive.
    • Explore and experiment with emerging models, technologies, and platforms.
    • Contribute to the open-source community and participate in industry events to share knowledge and stay informed.