Dive Brief:
- Nearly all enterprises plan to ramp up generative AI investments in the year ahead amid persisting struggles tied to ROI and technical challenges, according to an Informatica report published last week.
- Two-thirds of businesses admitted they are stuck in generative AI pilot phases and unable to transition into production, the survey of 600 data leaders found. Around 97% of respondents grappled with showing generative AI’s business value.
- Data leaders said cybersecurity and privacy compliance, uncertainty over responsible practices, reliability of results and data quality were hindering ROI.
Dive Insight:
Simply increasing generative AI investments can’t solve all the problems technology leaders face. But focused spending could help overcome existing hurdles.
Challenges related to data and the availability of expertise have emerged as leading inhibitors of enterprise success, and technology leaders are working to address the often intertwined issues. IT leaders are prioritizing improvements to data and AI know-how this year, according to Skillsoft.
While roadblocks persist, organizations want to see ROI. Technology leaders who feel compelled to show results could introduce unnecessary risk.
More than 90% of leaders expressed concern about generative AI pilots proceeding without addressing problems uncovered by previous initiatives, according to the Informatica report. Nearly 3 in 5 respondents admitted to facing pressure to move projects along faster.
Leader burnout is a serious danger and consideration for enterprises as they enter another year focused on generative AI. More than half of senior leaders say they feel like they’re failing amid AI’s rapid growth, according to EY research.
