North American Businesses Plan to Invest 67% More in Generative AI in 2024 to Drive Efficiency, Experience and Growth: Infosys Research

Companies are quickly ramping up investments in generative AI (GenAI) and realizing rapid returns, according to new research from the Infosys Knowledge Institute (IKI), the research arm of Infosys (NSE, BSE, NYSE: INFY), a global leader in next-generation digital services and consulting. The research forecasts that companies will increase GenAI investments 67% in the next year. This translates to a conservative estimate of $6 billion to be invested by US and Canadian companies in the next year. Enterprise leaders are taking a pragmatic view of GenAI, which may mitigate the reality check the broader GenAI market will likely face in the coming year.
 
Generative AI Radar 2023 – North America, by IKI, surveyed over 1,000 respondents from companies across the US and Canada. Supported by interviews with business leaders and AI practitioners, the report highlights the following insights.
 
•    Generative AI is not constrained by traditional innovation barriers
o    Large enterprises adopt GenAI and generate revenue faster; 73% of firms with over $10 billion in revenue have implemented GenAI solutions, compared to less than 38% of smaller companies
o    C-suite buy-in is not an obstacle; more than 95% of senior executives support GenAI investment
•    Companies expect GenAI to deliver operational performance, not only content creation
o    Only 13% identify content creation and creativity as GenAI’s most impactful area  
o    42% expect GenAI to improve user experience and personalization
•    Data challenges and lack of skills are the biggest obstacles to adoption
o    More than half of respondents identify data privacy, security, and usability as primary challenges
o    Nearly 20% see lack of skills, knowledge, or resources as the largest adoption obstacles
•    Heavily regulated industries have been quickest to adopt GenAI
o    Financial services, healthcare, and life sciences lead adoption of this new technology, bucking the stereotype of slow-moving regulated industries
 
Satish H.C., Executive Vice President, Co-Head Delivery, Infosys, said, “Generative AI is unlike any recent digital disruptors. Investment is flowing in fast, and our report establishes that these projects are generating value that is recognized at the C-suite. By embedding responsible AI techniques and developing an AI-first operating model, business leaders can realize the full potential of this new technology.”