A recent study conducted by The Wharton School of the University of Pennsylvania, in collaboration with GBK Collective, has revealed a notable increase in the use of generative artificial intelligence (Gen AI) among business leaders. The survey highlights that as of now, 72 percent of business leaders report utilising Gen AI weekly, a significant rise from the 37 percent recorded in 2023.
The report underlines a significant shift in how organisations approach Gen AI. Previously considered a novel tool, Gen AI is now viewed as a central component in business transformation strategies. Stefano Puntoni, Sebastian S. Kresge professor of marketing at Wharton and co-director of AI initiatives at the institution, notes that companies are transcending mere exploration of AI's capabilities, embedding it into their core strategies aimed at scaling growth, streamlining operations, and enhancing decision-making processes.
The expansion in AI application is evidenced by the fact that 55 percent of organisations are now applying Gen AI across multiple business functions. These include areas such as coding, data analysis, idea generation, brainstorming, content creation, and legal contract generation. Despite this widespread integration, challenges remain, particularly concerning accuracy, privacy, team integration, and ethical considerations. However, these issues are reportedly less of a concern compared to last year, with 58 percent of business leaders rating Gen AI's performance as 'great'.
The adoption of AI in marketing and sales has shown a significant surge, increasing from 20 percent in 2023 to 62 percent in 2024. Similarly, the application of AI in operations, human resources, purchasing, and procurement has doubled. Stefano Puntoni remarks that this advancement from experimentation to widespread use marks a crucial juncture for businesses. He notes that while companies are seeking tangible outcomes from AI integration, they must also navigate new challenges related to governance and the scaling of AI solutions across their enterprises.
In response to the rising integration of AI, expenditure on AI tools and systems has surged, with reports indicating a 130 percent increase. Furthermore, 72 percent of companies have plans to continue investing in AI in 2025.
The study further discloses that 90 percent of business leaders said AI enhances employee skills, an increase from 80 percent in 2023. Concerns surrounding job replacement due to AI have slightly diminished, with only 72 percent expressing worry, down from 75 percent previously.
Mary Purk, executive director of AI at Wharton, underscores the ongoing investment in Gen AI across various industries. She emphasises the necessity for businesses to achieve a measurable return on investment (ROI) to ensure sustained benefits. Purk suggests that the true competitive advantage will lie with those companies capable of scaling AI effectively and with confidence.
The rise of Gen AI in business operations points to an evolving landscape where organisations increasingly rely on technological advancements to drive efficiency and innovation. As firms continue to embrace this technology, the focus will likely remain on overcoming integration challenges and demonstrating the tangible value of AI implementations.
Source: Noah Wire Services