8 in 10 businesses plan to increase AI spend this year: survey
More Australian and global businesses will be adopting generative AI in 2024, according to Capgemini Research Institute.
A survey conducted by Capgemini Research Institute (CRI) highlighted investment in AI technology has increased over the last 12 months.
The research included 1,100 executives on a global level whose revenue ranged from US$1 billion to over US$20 billion. Survey participants spanned 14 countries and 11 industries/sectors.
Of these, 60 executives in Australia were surveyed with 58 saying they are exploring generative AI capabilities.
In the report, it was found that overall, 80 per cent of organisations have increased their investment in generative AI since 2023.
In comparison to CRI’s research from 2023, 20 per cent of the surveyed executives have maintained their investment level in AI.
A significant increase in organisations integrating generative AI into some or more of their locations and functions was found, with it jumping from 6 per cent to 24 per cent over the last 12 months.
The report stated the use of generative AI “has permeated across sectors and various functions within organisations, driving a shift in operations and business models.”
The data showed three-quarters of organisations, 74 per cent, agree AI technology has helped drive revenue and innovation.
In Australia alone, 77 per cent of surveyed organisations agree AI will drive their revenue and innovation.
Capgemini chief innovation officer Pascal Brier said organisations that have increased their use of the technology are now reaping the benefits.
“Generative AI is starting to transform business and organisations are already seeing concrete growth in revenue, whilst also accelerating innovation,” he said.
“As a result, rather than solely focusing on cost optimisation, businesses are actively exploring new avenues to leverage its capabilities and drive value creation.”
According to CRI, AI technology will transition from the role of a supportive tool to that of an independent agent with increased execution capability.
This will allow organisations to reimagine the way they do business and create greater value from their AI investments.
Brier said as AI technology progresses, companies will see a significant difference in how they operate.
“As investment increases, the rise of more complex, autonomous AI systems signals a new era of generative AI that could impact the way companies operate,” he said.
“To propel their AI journeys forward, organisations should establish strong data foundations with clear processes to manage siloed data and enable data integration across functions.”
CRI data showed that 97 per cent of organisations allow their employees to use generative AI in some capacity, with only 3 per cent of organisations having imposed a ban on the tool.
As the CRI report has demonstrated AI usage has significantly increased in the last 12 months, CRI cautions all businesses need to take a “sense of responsibility” when using the technology.
“Clear guardrails to validate decisions made by multi-agent systems are essential to ensure transparency and accountability in operations and to mitigate the future risks that public tools may pose to their organisation,” CRI said.
Brier said AI technology will be the way forward for many businesses.
“Trust, transparency and accountability will continue to play a central role whilst embracing this next frontier of AI that has the potential to deliver significant value over time.”
