Businesses Lag Behind in Adopting Generative AI Despite Ambitious Plans

Despite the widespread excitement surrounding generative AI, a recent survey indicates that businesses are still struggling to fully embrace the technology, citing barriers such as data privacy concerns, regulation, and inadequate IT infrastructure. The survey, conducted by MIT Technology Review Insights and Telstra, polled over 300 business leaders worldwide and found that while approximately 75% had experimented with generative AI in 2023, only a mere 9% reported significant adoption.

Businesses plan to expand generative AI usage significantly in 2024, aiming to double the number of functions and purposes for deployment. Key areas for expansion include customer experience, strategic analysis, and product innovation. Less than 30% of respondents believe their IT attributes are conducive to rapid generative AI adoption. Concerningly, experienced adopters express even less confidence in their IT capabilities, with 65% reporting inadequate hardware support. Regulatory compliance, data privacy, and budget constraints are major impediments to AI adoption, cited by 77%, 56%, and 65% of respondents, respectively. Additionally, skills shortages and cultural barriers pose significant challenges.

Laurence Liew, Director of AI Innovation at AI Singapore, highlights challenges in effective generative AI implementation, including access to real datasets, AI engineers, and computer infrastructure. Initiatives like AI apprenticeship programs aim to address talent shortages.

Despite the challenges, the survey reflects positive sentiments about the future role of generative AI in business. While many expect it to disrupt industries, the majority see it as a competitive opportunity rather than a threat.

Geraldine Kor, Managing Director of South Asia at Telstra International, emphasized the transformative potential of generative AI, suggesting that proficiency in this technology will be a game-changer for organizations and distinguish leaders from followers.

As businesses continue to navigate the complexities of adopting generative AI, they must address key challenges to unlock their full potential and drive innovation in the years to come.