The adoption of GenAI in organizations is rapidly growing, with two-thirds of respondents, or 67%, indicating that their organizations are increasing investments in GenAI due to the benefits derived from its implementation.

  • Despite rising expectations regarding the transformation from using GenAI, challenges related to data, widespread usage, and risks are limiting its adoption, leading to decreased enthusiasm among executives.
  • Demonstrating the benefits of implementing GenAI to senior executives is crucial for ongoing investment, as 54% of organizations aim to improve efficiency and effectiveness, yet only 38% are tracking changes in employee productivity.

The Deloitte AI Institute™ has released its Q3 report titled “State of Generative AI in the Enterprise”, which discusses trends in the adoption of GenAI in organizations, deployment strategies, and how organizations are overcoming obstacles to fully leverage this technology. The report “The State of Generative AI in the Enterprise: Now decides Next” surveyed 2,770 respondents from director to C-suite level across 14 countries worldwide. Although respondents had varying levels of expertise in using GenAI, all had experience with AI and had either experimented with or were currently using GenAI in their organizations.

“As pilot projects begin to yield tangible results, it is clear that we have reached a critical moment for Generative AI. Organizations must balance leadership expectations with challenges such as data quality, investment costs, effective measurement, and the evolving regulatory landscape. Our Q3 survey shows that managing change and full integration is essential for organizations to overcome obstacles, unlock value, and shape the future of GenAI within their enterprises,” Jim Rowan, Applied AI Leader and Principal, Deloitte Consulting LLP, stated.

“We have seen organizations continue to be excited and interested in GenAI, and leaders find that AI is most valuable when applied to critical business functions and processes. Deloitte's report highlights that the greatest benefits of GenAI extend beyond just improving efficiency, effectiveness, and cost reduction, with over half of executives noting that GenAI leads to increased innovation, better products and services, improved customer relationships, and value creation in other areas, showcasing the immense potential and benefits of GenAI,” Kosti Perigos, Generative AI Leader, Deloitte Global, remarked.

Excitement begins to wane in the face of reality, and use cases focused on genuine benefits will lead to the expansion of successful projects.

Respondents indicated that while senior executives and boards remain excited about GenAI, there are signs that enthusiasm may be diminishing as the excitement surrounding “new technology” fades. Interest in GenAI remains at a "high" or "very high" level, with 63% of senior executives and 53% of board members expressing interest, though this represents a decline of 11% and 8% respectively from the Q1 2024 survey. While organizations aim to select high-potential GenAI projects and scale them quickly for maximum benefit, many GenAI initiatives remain in the pilot or proof-of-concept stage, with 68% of respondents indicating that their organizations have moved from trial use of GenAI to full-scale projects.

Executives prioritize data management to ensure AI operates effectively.

Data is critical for executives knowledgeable about AI, with 75% of organizations increasing technology investments in data management due to GenAI. However, organizations face unexpected challenges in scaling projects, with 55% of survey participants avoiding certain GenAI applications due to data-related issues. Addressing data limitations is essential for effectively implementing GenAI. To modernize data capabilities, 54% of organizations have increased data security, 48% have improved data quality management practices, and 45% have adjusted their data governance frameworks and/or developed data policies.

Concerns about reliability and rapidly changing regulations lead many organizations to proceed cautiously, attempting to limit risks while not being overly fearful of potential risks.

While respondents recognize that managing risks associated with GenAI is important, 3 in 4 of the issues hindering successful GenAI implementation are related to risks, such as concerns about regulatory compliance (36%), difficulties in risk management (30%), and lack of governance frameworks (29%). These concerns stem from specific risks of GenAI, such as errors arising from assumptions and model bias, generating incorrect or nonsensical data or content (AI hallucinations), and new concerns about privacy, reliability, and preventing new attack vectors. To build trust and ensure responsible use, organizations are implementing controls and establishing audit capabilities. Top actions taken by organizations in this regard include establishing governance frameworks for using GenAI tools and applications (51%), reviewing legal requirements and regulatory compliance (49%), and conducting internal audits/testing of GenAI tools and applications (43%).

Despite ongoing experimentation with GenAI, there is an increasing need to demonstrate its benefits. While organizations participating in the survey are advancing GenAI projects beyond the proof-of-concept stage, 41% still report difficulties in defining and measuring the true impact of GenAI initiatives, with only 16% regularly reporting the benefits of projects to their CFOs. As use cases become clearer, senior executives are less likely to make investment decisions based solely on attractive visuals or fear of missing out; they will consider tangible measurement results, which are crucial for maintaining interest and support from senior executives and boards to prove the potential and true value. 48% of organizations have established key performance indicators (KPIs) to assess GenAI effectiveness, 38% have set investment evaluation frameworks for projects, and 38% have tracked changes in employee productivity resulting from GenAI usage.

About the report “The State of Generative AI in the Enterprise”

The report The State of Generative AI in the Enterprise: Now decides Next is the third report in a quarterly survey series aimed at tracking the adoption of GenAI in organizations. This research builds on Deloitte's “State of AI in the Enterprise” report, which has been conducted for six consecutive years. For this report, a survey was conducted between May and June 2024, involving 2,770 senior technology executives and AI-savvy executives directly involved in the experimentation or use of GenAI in large organizations across 14 countries and 6 industries, including consumer business, energy, resources and industrials, financial services, life sciences and healthcare, technology, media and telecommunications, as well as government and public services.