Is ROI a Growing Concern for Generative AI Investments?
Non-members can access the article here.
As the meteoric adoption of AI continues, Generative AI(Gen AI)stands out as the most frequently deployed AI solution in organizations today. While many have reported positive returns on their Gen AI investments, concerns regarding tangible ROI still persist in many spheres raising a very critical question :
Are the returns justified or the ROI concerns are real?
Proving tangible business value remains one of the most significant barriers to AI adoption. According to Gartner’s 2024 Hype Cycle for AI, Gen AI is entering the “trough of disillusionment”, a phase where the results of initial experiments are out, interest wanes as some initiatives falter, and market consolidation occurs, leaving only the dominant players standing.
The past 18 months have witnessed a surge in enterprise Gen AI adoption. The scale of investments into it has also been very significant. According to Goldman Sachs, big tech and many others are projected to spend over $1 trillion on AI in the coming years. According to the State of AI report by Nathan Benaich & Air Street Capital, startups operating in the space are also raising substantial funds.
