Generative AI (GenAI) is rapidly becoming a cornerstone of business strategy, as highlighted in a KPMG 2024 survey. This comprehensive study underscores a growing trend among executives who are increasingly confident in the technology’s transformative potential.
The majority are planning significant investments in the emerging technology over the next few years, viewing it as a strategic asset poised to drive substantial growth, innovation, and efficiency across industries.
According to KPMG’s survey, 77% of companies have already increased investments in the past year, and 83% plan to continue this trend over the next three years. This surge in spending is fueled by the belief that GenAI can significantly enhance revenue growth, improve productivity, and reduce operational costs. Executives are also optimistic about the potential to open new revenue streams and improve customer experiences.
This widespread commitment to GenAI reflects a broader recognition that the technology is becoming essential to maintaining a competitive edge.
Strategic Applications Across Functions
GenAI is being integrated into a wide range of business functions, with IT, operations, and marketing seeing some of the most impactful uses. In IT, it’s being utilized to enhance cybersecurity, automate routine tasks, and optimize system performance. Operations are leveraging the tools for predictive maintenance, supply chain optimization, and process automation. In marketing, GenAI is enabling hyper-personalized campaigns, content generation, and customer segmentation at an unprecedented scale.
These applications are not just improving efficiency but are also driving significant innovations in how businesses operate and engage with their customers.
The Imperative of Workforce Upskilling
While the potential for it is immense, its successful deployment depends heavily on the workforce’s ability to leverage the technology effectively. KPMG’s survey emphasizes the need for companies to invest in upskilling their employees, ensuring they have the skills necessary to work alongside GenAI. This includes training in data literacy, AI ethics, and technical skills related to AI tools and platforms.
By equipping their teams with these skills, companies can maximize the benefits of GenAI, transforming it from a complex tool into a driver of innovation and productivity.
“83% of executives plan to increase investments in Generative AI over the next three years.”
2024 GenAI Executive Survey
Addressing Risks: Data Privacy and Cybersecurity
As businesses increasingly rely on GenAI, the risks associated with data privacy and cybersecurity become more pronounced. KPMG’s survey highlights that the majority of executives are concerned about potential cybersecurity threats, and ethical implications, particularly regarding data usage and privacy. To mitigate these risks, companies are prioritizing investments in robust security measures, such as advanced encryption, secure data storage, and AI-driven cybersecurity solutions.
Additionally, there is a growing emphasis on developing ethical AI frameworks that ensure GenAI is used responsibly and transparently.
The Wrap
KPMG’s 2024 survey paints a compelling picture of GenAI as a transformative force in the business world. With significant investments on the horizon, companies are betting on the technology to drive growth and innovation.
However, success will depend on strategic implementation, workforce readiness, and robust security measures. By addressing these factors, businesses can fully realize the potential of GenAI, securing a competitive advantage in an increasingly AI-driven world.
