Google Cloud Research Shows Strong ROI for Early Adopters

Google Cloud shared new global research on how select global enterprises are achieving breakout success with GenAI. The ROI of Gen AI global survey commissioned by Google emphasizes that GenAI is more than just a new technology; it is a ‘key driver of business transformation’.

The report is based on a survey conducted by Google Cloud and the National Research Group. The survey, which includes 2,500 business leaders from global enterprises with revenues exceeding $10 million, focuses on GenAI’s ability to impact two categories: direct financial impact and the broader business advantages gained from deploying GenAI in production.

According to Google, GenAI can fuel rapid growth with 84% of early adopters successfully moving GenAI use cases from pilot to production within six months. The quick ROI has also helped organizations shorten innovation cycles and enhance business agility.

Along with the accelerated time to value, 86% of GenAI adopters are seeing a growth of 6% or more in annual company revenue. This highlights the tangible ROI that GenAI can deliver across various industries.

The Google report quoted business leaders who believe that these revenue gains will continue to improve over time as the industry explores new use cases with the potential to significantly impact business outcomes.

Another key finding of the research is that the majority of business executives (61%) are harnessing the power of GenAI, having at least one application in production. Those who are lagging need to make significant progress to catch up.

“Generative AI is not just a technological innovation; it’s a strategic differentiator,” said Google Cloud global generative AI go-to-market vice president, Oliver Parker. “Our research shows that early adopters of GenAI are reaping significant rewards, from increased revenue to better customer service to improved productivity. Organizations investing in GenAI today are the ones that will be best positioned to succeed in the coming decade.”

Google underscores that to achieve the best results, business leaders must integrate GenAI into their company’s core operations and invest in resources to support long-term growth. GenAI initiatives in production are driving benefits in four primary areas: productivity, security, business growth, and user experience.

According to the Google report, the “GenAI Leaders” have distinguished themselves by having dedicated teams for GenAI initiatives, strategic alignment of AI initiatives and broader business goals, and substantial budget allocation for GenAI projects. Eighty-six percent of these leaders have allocated half of their AI budgets to GenAI, compared to 67% on average.

Early adopters of GenAI are also in a better position to reinvest, helping them drive more innovation and growth from their initial investment. Nearly half of the respondents plan to reinvest their GenAI gains to further enhance business outcomes such as increasing their profit margins. The top three areas for investment include talent, technology, and data quality.

(SomYuZu/Shutterstock)

While GenAI holds great potential, there is still a significant gap in adoption rates. Nearly 2 out of five (39%) companies are yet to implement the technology in production. This includes 12% that are still evaluating use cases and 5% that haven’t even started yet. The lag is most evident in highly regulated industries such as manufacturing and financial services.

GenAI initiatives have been marred by ethical concerns and uncertainties about the AI regulatory landscape, as well as challenges related to a lack of AI skills and technology limitations that hinder AI adoption.

According to a recent Gartner study, at least 30% of GenAI projects currently in the testing phase will be abandoned after proof of concept by the end of 2025. Gartner identifies the primary causes of failed GenAI initiatives as poor data quality, escalating costs, unclear business value, and inadequate risk controls.

Organizations will have to overcome these challenges if they are to realize the full potential of their GenAI initiatives. Google’s research identifies key recommendations for organizations: gain C-suite level support for GenAI, focus on quick wins and core business areas, leverage enterprise data effectively, invest in transformation projects, build AI talent, and reinforce security with AI-powered solutions.

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