Not since the dotcom boom has a technology generated as much excitement, and hype, as GenAI. And, just as we witnessed with the dotcom boom, early adopters and investors in GenAI are yet to understand one critical factor: return on investment (ROI).
The picture’s coming into sharper focus. The ROI of GenAI, a report on the potential of GenAI technologies from Google Cloud, strongly reinforces the POV that the meteoric rise of GenAI won’t end with a burst bubble.
The report is based on a survey of more than 2,500 global business leaders jointly conducted with the National Research Group. The feedback was overwhelmingly positive: 74% of enterprises surveyed using GenAI tools reported positive ROI within year one.
According to the report, time to value is rapid. 84% of organizations transform a GenAI use case idea into production in under six months. However, Google Cloud still acknowledges that careful planning and caution are required, advising customers to take a strategic approach to GenAI adoption, ensuring mechanisms are in place for long-term success.
The report highlights the business benefits of GenAI, including increased productivity, business growth, better user experience, and improved security. In terms of productivity, 45% of respondents noted that employee productivity has doubled since the introduction of GenAI, with 70% citing improvements in process and staff productivity.
Regarding security — an important consideration that sometimes slows GenAI progress — 56% of those surveyed said GenAI had improved the company’s security posture, while 77% stated that GenAI software has directly contributed to business growth. Furthermore, 85% of respondents reported an improved user experience and increased engagement due to GenAI, and 80% reported increased user satisfaction.
“Our data underscores the importance of executive-level support and strategic alignment for maximizing the potential of generative AI,” said Carrie Tharp, vice president, Strategic Industries, Google Cloud.
“By connecting financial business drivers with technology drivers, organizations can ensure that AI strategies are not just innovative but also tightly intertwined with core business goals. This strategic alignment is the key to escaping the dreaded ‘pilot purgatory,’ and accelerating towards tangible business impact, leveraging AI to transform operations, enhance customer experiences, and unlock new avenues for growth.”
In every organization, for every major technology adoption drive, executive buy-in is crucial, as Tharp notes. However, the report surfaces data that will put a smile on the face of both IT teams and the sales teams driving GenAI products into the market: 9 out of 10 organizations with C-Level support of GenAI initiatives estimate a revenue increase of 6% or more. Beyond this, 86% of executives surveyed intend to allocate at least 50% of future AI budgets to GenAI.
We regularly note the importance of C-Level sponsorship in ensuring the success of digital transformation efforts, but it’s rare to find hard data directly tying that support to tangible financial gains. Google Cloud has delivered one of, if not the first, deep dive into the ROI of GenAI, emboldening IT and executive teams to continue down the path of GenAI adoption.
