Google Cloud has shared new global research that showcases the tangible return-on-investment (ROI) of generative AI (gen AI) initiatives across industries and markets worldwide. Conducted by National Research Group and commissioned by Google Cloud, the comprehensive study is based on a survey of 2,500 C-Suite leaders, including CEOs, CIOs, CFOs, CMOs, CTOs, CISOs, and COOs of global enterprises with more than $10 million in revenue.
According to the research, the majority of executives (61%) are harnessing the power of generative AI, with at least one application in production. Among these early adopters, 86% of those reported an increase in revenue, estimated at more than six percent. The survey found that gen AI initiatives that are in production are driving benefits in four primary areas:
- Productivity: Almost half (45%) of executives who reported improved productivity indicated that employee productivity has at least doubled as a result of gen AI rollouts at their organizations.
- Security: 56% of executives reported that gen AI has bolstered their organization’s security posture, with 82% of those exes citing improved ability to identify threats and 71% reporting a reduction in time to resolve a security issue.
- Business growth: 77% of execs reporting business growth said they have improved leads and customer acquisition as a result of gen AI solutions.
- User experience: 85% of executives reporting an improved user experience indicated specifically that user engagement has increased from gen AI, and nearly the same number reported improved user satisfaction (80%).
“Generative AI is not just a technological innovation; it’s a strategic differentiator,” said Oliver Parker, vice president, Global Generative AI Go-To-Market, Google Cloud. “Our research shows that early adopters of gen AI are reaping significant rewards, from increased revenue, to better customer service, to improved productivity. Organizations investing in gen AI today are the ones that will be best positioned to succeed in the coming decade.”
C-Suite champions are key to gen AI success as 91% of respondents with robust C-level support of gen AI at their organization also report increased revenue estimates of 6% or more. Additionally, “Gen AI Leaders” – organizations that extensively utilize and invest in generative AI – exhibit key characteristics that set them apart:
- Strategic alignment: 76% of leaders effectively aligned their AI strategies with broader business goals, compared to the global average of 69%.
- Dedicated teams: 54% of leaders invested in dedicated generative AI teams, 13% more than their counterparts.
- Significant investment: A staggering 86% of leaders plan to allocate at least half of their future AI budgets to generative AI, a stark contrast to the 67% average.
The early success of gen AI is sparking a reinvestment cycle that’s driving further innovation and growth. Nearly half of respondents surveyed (49%) plan to reinvest the gains from gen AI to further improve operating profit margins. Specifically, the topic three areas for investment are:
- Technology: 47% plan to invest in aligning business and technology to support change management for user adoption of AI.
- Talent: 46% plan to invest in upskilling their workforce and attracting new talent with AI expertise.
- Data quality: 43% said they plan to invest in data quality and knowledge management to ensure their gen AI applications are built on a solid foundation of accurate and reliable data
More results from the study are available here .
