How to Thrive with Generative AI: Four Strategic Insights
Thriving with Generative AI: Strategic Insights from Deloitte's Report
Generative AI has emerged as a transformative force since the public release of ChatGPT in November 2022. Deloitte's quarterly survey in December 2023 presents key findings from over 2,800 business and technology leaders actively involved in piloting or implementing generative AI at major organizations worldwide. This report provides valuable insights into generative AI adoption, sentiment, challenges, and future strategies.
Key Findings:
1. Overall Excitement and Societal Impacts
- 62% of surveyed leaders express excitement about generative AI.
- 31% expect substantial transformation within a year, and 48% within one to three years.
- 30% acknowledge doubts among those uncertain about the technology.
Despite the rapid evolution of generative AI, experienced leaders, who are actively involved in AI initiatives, show strong confidence on their capabilities on adopting generative AI with high levels of AI expertise, that’s account for 44% of leaders
Despite rapid evolution, leaders with high AI expertise (44%) exhibit confidence in adopting generative AI. Those leaders are actively involved in AI initiatives and experienced.
*Note: Organizations with very high generative AI expertise express confidence but also perceive it as a threat to their business and operating models.
Leaders express optimism about business benefits but pessimism regarding societal impacts. Their concerns include the centralization of power (52%), increased economic inequality (51%), and erosion of trust in institutions (49%)
2. Focus on Efficiency and Productivity
56% concentrate on improving efficiency/productivity, while 35% aim to reduce costs. Only 29% target strategic benefits like innovation and growth, aligning with typical technology adoption patterns.
3. Predominance of Off-the-Shelf Solutions
The majority (71%) relies on off-the-shelf solutions, including integrated applications (61%) and publicly available large language models (56%). As use cases become more specialized, the report questions when custom solutions will emerge.
4. Concerns on Talent and Governance
41% report unpreparedness in addressing talent concerns, while 41% feel unprepared for governance and risk issues.
5. Call for Governance, Regulation and Global Collaboration
Leaders show concerns on governance and risks that include inaccurate results, legal challenges, privacy issues, lack of transparency, and systemic bias. And unique risks associated with generative AI prompt leaders to seek external oversight.
78% advocate for more governmental regulation of AI, and 72% feel there's insufficient global collaboration.
The report concludes with strategic questions for organizations to consider in the rapidly evolving landscape of generative AI.
Vision and strategy
Business should develop a vision and strategies powered with AI initiatives, with a focus on end-to-end processes, build platform capabilities, scaling up for long-term value creation, and deploy AI broadly for sustained transformation.
To strategically reinvesting AI dividends, businesses need to deliberately reinvest strategies to maximize generative AI's long-term impact. With focusing on differentiation and building competitive edge, it Advises organizations to prioritize innovation and customization for sustainable competitive advantage.
Talents and Skills
To build expertise in a rapidly technology changing environment, optimize talents and skills with a hybrid approaches. Organizations should invest in people and workforce for skills transformation through education existing workforces, recruiting new talents, and fostering trust to overcome talent barriers. Meanwhile, organizations also need to emphasize adaptability, experimentation, and cross-disciplinary collaboration to navigate the evolving generative AI landscape.
Partnership
Develop strategies to balance buying vs. building and decide whether to buy off-the-shelf solutions or build custom generative AI models based on their goals and requirements.
Governance
To ensure responsible use and alignment with societal guardrails, business should manage generative AI risks responsibly, keep humans in the loop, and align decisions with evolving societal expectations
Deloitte's inaugural report sets the stage for ongoing insights into the dynamic world of generative AI, guiding leaders in navigating this transformative journey as organizations continue to grapple with challenges and opportunities.
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