The Slow Adoption of Generative ai in Businesses: Challenges and Obstacles
In a recent global survey conducted by Telstra and the MIT Technology Review Insights, only 9% of more than 300 business leaders worldwide were found to be heavily utilizing generative ai, despite the technology’s widespread hype and expectations. This surprising finding sheds light on the slow adoption rate of this cutting-edge technology across various industries.
Key Obstacles Preventing Widespread Adoption
The survey report identified several key obstacles preventing the widespread adoption of generative ai. Data privacy, regulations, and IT infrastructure emerged as the primary challenges.
Data Privacy and Regulations
One of the significant hurdles identified in the survey is the need for robust governance frameworks and security procedures to mitigate risks associated with generative ai. Laurence Liew, director of ai innovation at ai Singapore, emphasized the importance of establishing clear governance frameworks and security procedures for ai models during the launch of the MIT report.
Liew highlighted the necessity for businesses to ensure appropriate governance is in place and that internal documents are properly segmented or secure. He emphasized the need to avoid scenarios where ai models could be tricked into disclosing private information, such as employees’ salaries.
IT Infrastructure and Investment
The survey also revealed that IT resources and capabilities, as well as investment budgets, posed significant obstacles to the rapid deployment of generative ai. Less than 30% of the respondents expressed confidence in their company’s IT attributes to support the quick adoption of generative ai.
Furthermore, 56% of the respondents stated that their IT investment budgets limited the implementation of generative ai. Despite these challenges, most business leaders anticipate generative ai to be used by more than twice as many business functions or general purposes by 2024.
Early Applications and Future Plans
Early adopters in 2023 primarily used the technology for automating repetitive, low-value tasks, as they required less human supervision. By 2024, respondents expect to implement generative ai in various areas, including customer service (77%), strategic analysis (74%), product innovation, supply chain logistics, and sales.
However, the report noted that these plans might be high on “ambition and hubris” due to the obstacles mentioned earlier. Addressing these issues will be crucial for the widespread adoption and successful integration of this transformative technology into various business operations.
Prioritizing Investments to Overcome Obstacles
As the generative ai ecosystem continues to evolve, businesses must navigate the challenges of data privacy, regulatory compliance, and IT infrastructure limitations. Prioritizing investments in IT resources, data quality, and ai governance frameworks will be essential for unlocking the full potential of generative ai.
By overcoming these barriers, companies can harness the power of this technology to drive innovation, enhance customer experiences, and gain a competitive edge in an increasingly digital landscape. The slow adoption rate of generative ai presents an opportunity for businesses that are willing to invest in the necessary infrastructure and expertise to lead the way in this transformative technology.
Conclusion
In conclusion, the survey findings highlight the need for businesses to navigate the challenges of data privacy, regulatory compliance, and IT infrastructure limitations when adopting generative ai. By investing in the necessary resources, data quality, and governance frameworks, companies can unlock the full potential of this transformative technology to drive innovation, enhance customer experiences, and gain a competitive edge.
It is essential for businesses to prioritize these investments to stay ahead of the curve in an increasingly digital landscape. The future of generative ai lies in its ability to transform business operations and create new opportunities, making it a crucial investment for companies looking to stay competitive in the modern business world.
