The two-year GenAI countdown

There is no time to waste. Enterprises have just two years to capitalize on generative AI’s (GenAI) benefits. Any delay will be costly as GenAI is rapidly reshaping the competitive landscape. And even as you set off on your road to GenAI success, this report finds that obsessing over productivity gains at the expense of broader goals will prevent you from realizing the technology’s full value.

Enterprise leaders are at a pivotal juncture with rapidly evolving generative AI technology. First, they must learn to harness its power. Then, they must implement it across their organizations at speed and scale. The weight of executives’ decisions is palpable, as they hold the potential to shape the future of their businesses. Yet, amid the excitement surrounding the technology’s immediate impacts, there is danger in overlooking its long-term implications.

To gain deeper insights into GenAI’s long-term value and the risks of overemphasizing immediate outcomes such as productivity improvements, HFS Research, in partnership with Genpact, a global professional services firm, surveyed 550 senior executives across the globe. These respondents represent organizations with revenue exceeding $1 billion across 12 countries and eight industries. For further insights, we conducted in-depth interviews with 10 enterprise leaders at the forefront of GenAI adoption and innovation.

To dive deeper into the data, check out our interactive dashboard.

Key findings:

- Most enterprises are early in their GenAI journeys but are placing big bets Despite only 5% of enterprises having mature GenAI initiatives, a significant majority are gearing up for a technological transformation. Approximately 61% of executives are dedicating up to 10% of their tech budgets to explore and expand GenAI capabilities.
- Executives view GenAI as a catalyst for creating new value within two years but caution against overemphasizing productivity 74% of executives anticipate GenAI will be a springboard for value creation, driving not only productivity gains, but also customer satisfaction, revenue growth, and a competitive edge — all expected to materialize within two years. However, concerns loom as 52% caution against overemphasizing productivity, citing potential negative impacts on the employee experience.
- Quality data is the linchpin for the successful deployment of GenAI initiatives Organizations are challenged with several hurdles, including data quality and strategy. Notably, there’s a hesitancy around data sharing, with only 16% of enterprises using their proprietary data, underscoring the urgent need for a robust data strategy.
- Embrace GenAI’s transformative power, but don’t lose sight of the human element Bridging the talent divide is crucial, as 36% of executives report a scarcity of skilled professionals. Finding the balance between technical and business skills will be vital. However, in the short term, technical skills gain importance.
- Enterprises need an ecosystem for GenAI success, but current time-and-material-driven engagement models will be rendered useless in the AI era Executives emphasize the need for a diverse ecosystem, highlighting the importance of partnerships that support talent acquisition and skill development. Additionally, 80% recognize the need to transition to performance- and purpose-driven commercial models with partners to capitalize fully on GenAI’s potential.