2 weeks Ago
There’s been a lot of discussion in recent times about the comfort levels of business leaders with artificial intelligence, particularly generative AI. By some accounts, they have been shying away from relying too much on the technology. Is this shyness disappearing? This hesitancy seems to be disappearing fast.
Nearly three in four executives, 72%, report using gen AI at least once a week, up from 37% in 2023, a new survey of 800 executives out of the University of Pennsylvania’s AI research center, AI at Wharton, finds. Wharton collaborated with GBK Collective to produce the survey. Last year at this time, AI was seen as a data science project — 78% of leaders expected gen AI to impact core functions such as data analysis and research, and usage remained largely experimental.
At the same time, 57% expected a slowdown in gen AI spending growth, as the ROI was not being seen at that time. Since last year’s survey, “the landscape has shifted significantly,” the researchers state. Along with almost three in four executives using the technology themselves, there has also been a 130% increase in AI spending over the past year.
Still, there is caution in approaching AI. A majority, 57%, suggest increases in AI spending will slow. This “perhaps an indicator that enterprises are still searching for ROI on their initiation investment.
” Another AI concern — skills and job displacement — also seems to be easing — a bit. Ninety percent of business leaders agree that AI enhances employee skills, up from 80% in 2023, while concerns about job displacement have eased, dropping from 75% to 72%. In terms of proliferation, more businesspeople beyond IT are making use of generative AI, the survey shows.
In marketing and sales for example, AI adoption tripled from 20% last year to 62% at the current time. Operations saw usage more than double, rising from 16% to 50%. Product development teams increased usage from 40% to 78%.
The top AI use cases identified in the survey, in fact, cater to easing the administrative burdens associated with executive roles — such as document handling and meeting notes. The most common use cases for generative AI at this time include the following: There are organizational shifts taking place, the survey also finds. Interestingly, 46% of executives report they now have chief AI officers — CAIOs — within their ranks.
.
