“Generative AI is not another Metaverse”

"Decision-makers prefer to use generative AI as their personal co-pilots. Data analysis and marketing will be the top fields of application in the coming years.

 

The possible uses of generative AI are constantly expanding. That's why companies from very different industries have identified artificial intelligence as a central strategic initiative for the coming years, shows the new analysis "The Rise of Generative AI Across Enterprises" by Wharton Professor Stefano Puntoni. “This is not another Metaverse,” says Puntoni. 

 

“Decision makers at companies across all industries are adopting generative AI in droves, and the wave is only going to grow, with spending increasing by more than 25 percent over the next 12 months.”

 

“The results of our survey paint a dynamic future for generative AI, with rapidly growing investments and applications,” says Puntoni. "And yet, not all approaches are created equal: While AI can analyze mountains of data in seconds, human oversight and asking the right questions are critical to ensuring accurate and responsible use of AI results."

 

Key applications: data analysis and marketing

 

When asked about the central applications of generative AI, the majority of the 672 decision-makers surveyed point to a future in which these AI models will become irreplaceable companions (co-pilots) in everyday working life. For the next three to five years, the majority of decision-makers see data analysis (89 percent), the creation of marketing content (text, images, video; 87 percent) and gathering information about customers and competitors (84 percent) as central applications of generative AI.

 

The fact that data analysis takes precedence over the creation of content is due to new tools such as “Advanced Data Analysis” from OpenAI, which can analyze and process large amounts of data. In this way, large Excel tables become meaningful graphics in seconds, which people can understand and interpret much better. Other preferred application areas include document editing and aggregation (84 percent), customer support or internal help desk functions (82 percent) and automated email creation (82 percent). The least popular applications for generative AI are expected to be legal contracts (57 percent), recruiting (67 percent), and supply chain management (71 percent).

 

37 percent of decision-makers already use AI as a digital co-pilot

 

AI is thus becoming a co-pilot for decision-makers: 37 percent of the company managers surveyed already use AI at least weekly. At the forefront are executives from the technology industry, 60 percent of whom already frequently use generative AI. This is followed by industry and the financial sector with 43 percent and 39 percent. In contrast, only 26 percent of retail executives regularly use generative AI.

 

The priorities when choosing deployment depend on the size of the company. Smaller companies ($50 million to $200 million in revenue) are investing heavily in generative AI for sales content (91 percent), while midsize companies ($250 million to $2 billion) are focusing more on email generation and internal support (86 percent). place. This reflects not only different priorities, but also the strategic challenges faced by companies of different sizes.

 

The main motivators for adopting generative AI are increasing employee productivity, optimizing business operations, fostering employee creativity, developing new products and services, and reaching new audiences or markets. Three out of four business leaders have a generally positive view of generative AI, but caution exists among all respondents, particularly among those who use the technology less frequently.

 

“While optimism about generative AI prevails, concerns remain about accuracy, bias and the role of AI in decision-making,” says Puntoni. "Furthermore, there is a fundamental psychological concern among leaders about job replacement, particularly among those who have not yet used the technology. As generative AI becomes more embedded in teams, it will be crucial to strike the right balance between AI governance and employee education."

 

AI is primarily seen as a help rather than a replacement for people

 

At this point, the study shows that generative AI is seen as an advantage for employees rather than a disadvantage. Managers currently using the technology are more likely to believe that generative AI will enhance employees' skills rather than replace them (48 percent versus 36 percent strongly agree).

 

Furthermore, most business leaders do not believe that technology can completely replace human talent. However, it can improve the quality of work (55 percent strongly agree that AI will enable higher quality with the same employees, versus 43 percent who strongly agree but with fewer employees)." [1]

 

1.  "Generative KI ist kein weiteres Metaverse". Frankfurter Allgemeine Zeitung (online)Frankfurter Allgemeine Zeitung GmbH. Oct 25, 2023. Von Holger Schmidt