Author(s): Konstantin Babenko Originally published on Towards AI. Source: Image by ImageFlow on Shutterstock 74% of companies fail at AI ROI — discover what you can do to drive real results. According to a current NTT Data digital business survey, nearly all companies have implemented generative AI solutions, while 83% have created expert or advanced teams for the technology. The Global GenAI Report, spanning respondents within 34 countries and 12 industries, showed that 97% of CEOs expect a material change from generative AI adoption. The same report states that knowledge management, service recommendation, quality assurance, and research and development are the most valuable areas for implementing generative AI. These findings present how generative AI is perceived in a collective sense as the enabler for change. Carlos Galve, co-head of the global generative AI office at NTT Data said: “I cannot find any other technology more transformational than generative AI. It can be applied to all industries, to all value chains, to all the specific tasks we do. Give me any kind of task and I will find some part of it where generative AI will add value.” Having put a lot of effort into building their AI capabilities, recruiting AI talent, and experimenting with AI pilots, today’s CEOs expect ROI from the innovation. Nevertheless, the full realization of AI’s potential still presents a challenge. Current research shows that only 26% of companies are equipped with the relevant capabilities to convert AI from proof of concept into value creation (Boston Consulting Group, 2024). This article focuses on the current AI implementation in 2024 and the future trends for 2025 based on the analysis of the latest industry research. The piece will empower CEOs and C-level executives to proactively adapt their business strategies, ensuring they stay ahead of the curve in an increasingly AI-driven marketplace. AI Value Distribution As per the BCG report, organizations derive as high as 60% of the generative AI value from the core business functions: 23% Operations 20% Sales and Marketing 13% R&D 38% Support functions 12% Customer service 7% IT 7% Procurement. It also reveals a wide divergence between industries. Sales and marketing are reported to drive the most value from AI in software, travel and tourism, media, and telecommunications industries. Customer service appears as a prime area where the value of AI usage is tangible in the insurance and banking spheres, whereas consumer goods and retail industries are experiencing massive growth in personalization through AI. Source: Image by SuPatMaN on Shutterstock What Separates AI Leaders from the Rest The BCG report covers a major disconnect between AI adoption. Only 4% of companies have cutting-edge AI capabilities that provide major value and another 22% (AI leaders) are reaping big benefits from advanced strategies. On the opposite end of the spectrum, 74% of companies have not yet seen tangible benefits from AI. According to Nicolas de Bellefonds, senior partner at BCG, “AI leaders are raising the bar with more ambitious goals.” “They focus on finding meaningful outcomes on cost and topline, and they focus on core function transformation, not diffuse productivity gains.” Let’s take a closer look at what makes AI leaders excel: 1. Core business focus. Core processes generate 62% of leaders’ AI value, with leaders optimizing support functions to deliver a broader impact. 2. Ambitious goals. By 2027, they plan to invest twice as much in AI and workforce enablement, scale twice as many AI solutions, and generate 60% more revenue growth and 50% more cost reductions. 3. Balanced approach. Over half of leaders are using AI to transform the cost of their business and a third are using AI to generate revenue compared to their peers. 4. Strategic prioritization. Leaders focus on fewer, higher-impact opportunities to double their ROI and scale twice as many AI solutions as others. 5. People over technology. Leaders allocate 70% of resources to people and processes, thus assuring sustainable AI integration. 6. Early adoption of GenAI. Generative AI is quickly adopted by leaders emerging as a modern tool for content creation, reasoning, and system orchestration, leading the curve. Results That Speak Volumes Over the past 3 years, AI leaders have demonstrated 1.5x revenue growth, 1.6x shareholder returns, and 1.4x ROI, outperforming their peers. In addition to superior financial performance, they are also crushing in nonfinancial areas such as patent filings and employee satisfaction, demonstrating how their people-first, core-focused strategies are driving transformational outcomes. Challenges Faced in the Process of AI Integration According to the BCG report, organizations experience different issues with the implementation of AI; among them, 70% are linked to people and processes. The remaining 30% covers such categories as technology (20%) and AI algorithms (10%). The survey underlines that many companies tend to think of themselves as primarily technical organizations while the human aspect is what should not be overlooked if an enterprise wants its AI endeavors to succeed. The Human-Centric Gap AI integration is not just about deploying the latest technology; it is about having a workforce that is prepared to accept AI-driven changes. Lack of AI literacy, resistance to change and unclear roles in AI initiatives can often derail progress. The way leaders overcome these challenges is by investing in workforce enablement and training programs as well as building a culture in which data-backed decisions are valued. Technology and Algorithms On the technical side, it is difficult to integrate AI into existing systems, scale solutions across departments and keep data of the right quality. Leaders tackle these issues by strategically prioritizing a few high-value opportunities, with robust infrastructure and data governance practices. Bridging the Gap How well you balance the technical and human parts is key to success in AI integration. Leaders put the wheels in motion for sustainable AI adoption by placing 70% of resources in people and processes, proving that it’s not just algorithms that unlock AI’s potential, but also the technology with human capital and operational processes. Source: Image by SuPatMaN on Shutterstock Enterprise AI Perspective for 2025 The role of AI […]
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