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It’s unclear how many enterprises have fully deployed generative AI into their workflows and how much it’s improved productivity. However, AI innovation and knowledge about the technology have matured, and enterprises have begun asking if investing in AI is worth it rather than running for the next shiny thing.
However, figuring out how much AI impacts productivity and return on investment seems harder when differing ideas on what productivity means in an AI-enabled workspace exist.
A new survey from Google Cloud and the National Research Group found that 74% of companies using gen AI for at least one application saw a return on investment in a year. Of these, 86% reported that their revenue went up 6% or more.
Google surveyed 2,508 senior leaders of global enterprises with $10 million or more in revenue between Feb. 23 and April 5 this year. Of those surveyed, 61% said they use gen AI for at least one application.
“Generative AI is not just a technological innovation; it’s a strategic differentiator,” said Oliver Park, Google Cloud vice president, global generative AI go-to-market, in a blog post. “Our research shows that early adopters of gen AI are reaping significant rewards, from increased revenue to better customer service to improved productivity. Organizations investing in gen AI today are the ones that will be best positioned to succeed in the coming decade.”
It added that companies can move AI use cases “from idea to production in less than six months.”
The survey said productivity improved by 45%. Many of the productivity gains, 70% of respondents said, came from IT processes and staff productivity, though the Google report did not specify what kinds of IT processes. Other productivity improvements included faster time to insights and better accuracy.
At 63%, more than half credited AI as a business growth driver. The survey noted that, on average, companies saw improved customer leads and acquisitions directly stemming from AI tools. While other verticals like retail and manufacturing also ranked AI-powered lead generation high, 82% of respondents in the financial services said it found the most growth in that area thanks to AI.
However, other surveys found that AI has made it harder for workers to be productive, as their bosses began expecting increased output.
Productivity pressures
Research from freelance company Upwork released in July showed plugging AI into workflows fails to unlock meaningful productivity for workers.
Upwork’s report, which surveyed 2,500 C-suite executives, full-time employees and freelancers in the U.S., U.K., Australia and Canada, found a disconnect between workers and executives.
The survey showed that 81% of C-suite executives expected more from employees, with 37% saying that AI tools should increase their output. Companies that reported they deployed AI said they had seen an increase in employee productivity this past year.
While that all sounds interesting, employees feel differently even though many employees want to use AI in their jobs. Most of those surveyed, 65%, believe AI could increase their productivity; however, they said it has not been what they see at work. Around 47% said they don’t know how to use AI to help in their jobs because they’ve received no training.
Balance what you need
Google pointed out that company leadership needs to provide a comprehensive strategy to bring in AI, but enterprises also need to start small and focus on core business areas. The report also noted the importance of training the workforce, something workers surveyed by Upwork said they wanted.
It’s not just about providing training; workers also want to be part of any strategy involving AI since their work is greatly impacted. Upwork said 74% of employees believe their companies need to overhaul their ideas of worker productivity.
“When workers are more involved in co-creating the measures against which their productivity is evaluated, we see a greater emphasis on creativity and innovation, customer relationship building, and adaptability—attributes that executives believe are important and contribute to the bottom line,” the report said.
In other words, gen AI is now giving early adopters a return on their investment. But now is also the time to get employees on board.
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