April 19, 2024
Business Tech

GenAI technology is gaining traction among enterprises

80% of GenAI investors engage in proof-of-concept applications

Generative Artificial Intelligence (GenAI) is establishing itself as a groundbreaking technology according to the ‘Reimagining Industry Futures Study’ conducted by EY.

Released ahead of the Mobile World Congress (MWC) in Barcelona (February 26-29, 2024), the research, encompassing 1,405 enterprises, indicates a substantial 43% investment in GenAI, solidifying its position as the third most invested-in emerging technology among the nine tracked, with ‘Automation and AI’ claiming the top spot.

Notably, 80% of enterprises currently investing in GenAI are actively engaged in proof-of-concept applications, while 20% have already initiated pilot projects.

Despite its increasing prominence, 38% of respondents advocate for a measured, incremental approach to adoption, reflecting concerns related to ethics and accountability.

Additionally, 73% expressed the need for a deeper understanding of GenAI concepts and use cases, 69% desired more information on potential risks, and 52% expressed concerns about potential job displacement.

Data governance

Enterprises prioritise GenAI adoption to enhance data governance, addressing data accuracy and ethics risks, with 46% of respondents highlighting this as a key priority.

Leading use cases for GenAI applications include employee training and collaboration (36%) and customer sales and service (35%).

Tom Loozen, EY Global Telecommunications Leader, said: “One of the biggest trends emerging from this year’s study is the momentum behind GenAI investment, as businesses continue to evaluate its overall impact on their organisation. This frontier technology is redefining the possibilities around enterprise transformation.”

Simultaneously, the study indicates a significant increase in 5G investments, rising six percentage points to 79% year-on-year.

American enterprises lead in 5G investment, with 82% either currently investing or planning to invest.

Meanwhile, European and Asian enterprises are catching up, with 79% and 78%, respectively, either currently investing or planning to invest – marking a more than 10-percentage-point increase year-on-year.

Organisations identify cyber and data protection risks as the primary challenges surrounding 5G adoption, particularly in the face of rising cyber-attacks on Internet of Things (IoT) devices.

Looking ahead, 42% of enterprises prioritise exploring 5G’s relationship with AI and other emerging technologies as their top future priority for 5G adoption.

However, the study underscores challenges in integrating technologies, with 60% stating that vendors do not adequately articulate how 5G and IoT can be seamlessly integrated with AI.

Adrian Baschnonga, EY Global TMT Lead Analyst, noted: “Integrating different emerging technologies is now a priority for businesses, but technology vendors are falling short of expectations.

“Vendors need to do better, closing this confidence gap by clearly showcasing the added value derived from combining different technologies.”

Featured image: GenAI is the third most invested-in emerging technology. Image: AI-generated

    Middle East News 247

    Middle East News 247

    Middle East News 247 delivers the latest business and lifestyle news and essential infotainment for, and from the Middle East region, with key focus on the GCC nations: United Arab Emirates (UAE), Saudi Arabia, Qatar, Bahrain, Kuwait, and Oman.
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