The Unstoppable Rise of Generative AI: A Brave New World for Enterprise IT

In the ever-evolving landscape of artificial intelligence, one technology is rapidly reshaping the future of enterprise IT: generative AI. According to a groundbreaking report from Glean and ISG, IT leaders are not just embracing this transformative technology—they're racing to adopt it, even in the face of potential risks.

The report, which surveyed 224 IT executives at large U.S. and European companies, reveals a stunning increase in generative AI budgets. Between 2023 and 2025, these budgets are expected to nearly triple, rising from an average of 1.5% of IT budgets today to a whopping 4.3%. For larger companies with over $5 billion in revenue, the investment is even more substantial, with 26% of firms planning to allocate more than 10% of their budgets to generative AI by 2025.

So, what's driving this unprecedented surge in generative AI adoption? The answer lies in the anticipated payoff. IT leaders foresee a 7% increase in global GDP over the next decade and a 40% rise in worker productivity, thanks to the power of generative AI.

But this brave new world doesn't come without its challenges. The report highlights the growing threat of shadow IT, where employees use unauthorized generative AI tools, potentially exposing organizations to significant security risks. A striking 73% of respondents view these unauthorized tools as a business threat, yet more than half (57%) acknowledge their prevalence within their organizations.

Despite these concerns, IT leaders remain undeterred. A surprising 34% of survey respondents said they are willing to implement generative AI quickly, even if negative consequences could occur. Only 8% cited the technology changing too fast as their biggest concern.

Early pilots have yielded promising results, with 46% of respondents reporting better-than-expected outcomes. However, measuring the return on investment (ROI) remains a challenge. While productivity gains were cited as the top way to measure ROI, few respondents have systematic methods to quantify benefits. As investment ramps up, developing better evaluation practices will be crucial.

The findings suggest that generative AI could fundamentally reshape how enterprise technology works. But the accelerated pace of deployment is testing IT teams accustomed to more cautious adoption curves. Striking the right balance between innovation gains and risk management will be key in this unfolding AI revolution.

As we stand on the brink of this exciting new era, it's clear that generative AI is here to stay. For businesses and professionals looking to harness the power of AI, the time to act is now. Embrace the potential of generative AI, but do so with a keen eye on risk management and measurable results. The future is yours for the taking—seize it with confidence and wisdom.

https://www.glean.com/resources/cio-generative-ai