Generative Artificial Intelligence (AI) has been one of the most popular technology topics of 2023. The hype for generative AI is justified, promising enterprises huge leaps in productivity if implemented correctly. While most enterprises are still years away from company-wide adoption, some early movers are showing huge progress, with most having at least placed generative AI on their radar with plans to adopt it. ABI Research’s Generative AI Business Outcomes: Identifying Enterprise Commercial Opportunities report provides a full-fledged evaluation of generative AI, including business use cases, challenges to implementation, market trends, and strategic recommendations. Here are five of the biggest trends from our research report that you should know about.
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Generative AI is an advanced form of Artificial Intelligence (AI) that uses models and algorithms to produce outputs that include videos, images, text, code, 3D content, and data. Deep Learning (DL) models are trained on a specific set of data to develop weights and biases that generate outputs.
As a basic example, ChatGPT was trained on 570 Gigabytes (GB) of data scoured over the web, including books, articles, web text, and other informational content published online. ChatGPT generates text-based prompts based on relevant sources from all that content. From the enterprise perspective, this has significant value as generative AI models can be trained for specific industry verticals or even companies using curated datasets. This facilitates applications like a chatbot tailored to provide advice to industrial engineer designers in real time or enabling pharmaceutical companies to accelerate drug discovery by analyzing molecule and protein data.
While generative AI is not a new technology, its use in consumer applications like ChatGPT has led to its widespread popularization. However, the enterprise segment is the next inflection point for generative AI, as organizations worldwide aim to bolster productivity, create new services, and support process automation.
Next, let’s assess some of the major trends that our research report reveals about enterprise generative AI.
Below is the quick video version recapping the trends.
Enterprise interest in generative AI software is so significant that ABI Research expects it to add more than US$450 billion in value across 12 verticals by 2030. Generative AI will be used differently in each industry, with retail and e-commerce being the biggest beneficiaries of adopting the technology. The value of generative AI in business contexts stems from enormous productivity gains, accelerated time to market for new products/services, and improved customer service.
Enterprises must have a well-defined corporate strategy for generative AI, encompassing governance, legal considerations, employee guidelines, and specific business outcomes. A widescale adoption of generative AI will entail a colossal change in company culture and processes, for which most enterprises are not prepared. Enterprises adopting generative AI without a clear corporate strategy risk internal fragmentation and a poor transition. Some key factors to account for in a generative AI corporate strategy include:
Multinational Corporations (MNCs), Small and Medium Enterprises (SMEs), and startups are all approaching generative AI differently due to varying degrees of access to capital, internal skillset, and different pain points.
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While the list of use cases for generative AI is extensive, they will not materialize simultaneously. ABI Research sees the Business-to-Business (B2B) market adopting generative AI in three distinct phases:
One of the biggest roadblocks to the mass adoption of enterprise generative AI is the question mark surrounding the security of the technology. Understandably, enterprises are worried that generative AI outputs could be inaccurate or untrustworthy, leading to poor business outcomes. Moreover, companies are wary of copyright infringement, Intellectual Property (IP) theft, and other data privacy concerns. Adding to this, there is still some confusion about the legality of using third-party content.
The generative AI industry must adopt strong regulatory frameworks that mandate guardrails, watermarks, and other strategies to overcome these security barriers. Governments have been expected to lead this process and develop symmetrical, centralized regulatory frameworks, but so far, different countries have shown varied approaches creating additional risk within the market.
Generative Pretrained Transformer (GPT) applications like ChatGPT (an OpenAI chatbot based on GPT-3) have already taken the consumer markets by storm. Over the next few years, we expect more widespread adoption of generative AI applications like these in the enterprise domain. From a business standpoint, the value of generative AI is clear from product time to market to process and service automation.
Currently, generative AI is primarily reserved for low-risk use cases and PoCs, signaling how wary enterprises still are about the technology’s maturity and accessibility. Before generative AI transforms the modern enterprise, privacy, ethical, and legal issues must be properly addressed. Moreover, enterprises still lack the strong corporate strategy required to implement generative AI company-wide.
Assess all the latest trends within the world of generative AI by checking out ABI Research’s Generative AI Research Spotlight.