Market reflects a tumultuous time of rapid innovation and unsettled use cases, but also maturity in responsible AI, lifecycle management
NEWTON, Mass., Oct. 17, 2024 /PRNewswire-PRWeb/ -- TechTarget's Enterprise Strategy Group (ESG), a leading IT analyst, research, and strategy firm, today announced new annual research into the Generative AI (GenAI) market. The study reveals that despite market rumblings that GenAI has lost momentum, GenAI adoption among business and public-sector organizations has passed the mass-market tipping point, signaling explosive growth.
The ESG report, The State of the Generative AI Market: Widespread Transformation Continues, summarizes the findings of a global survey of 832 technology and business professionals involved with their organization's GenAI initiatives across North America, Europe, Asia, and Latin America. ESG's survey found 30% of organizations have GenAI projects in early or mature production, while an additional 33% have projects in pilot or proof-of-concept (POC) phase. Dr. Everett M. Rogers' Diffusion of Innovations theory states that market adoption rapidly accelerates after it reaches 16% market penetration.
GenAI, which uses algorithms trained on huge amounts of data collected from diverse sources to generate information based on user inputs, grew into mainstream awareness in late 2022. Today, the GenAI market reflects classic signals of a market-disrupting technology characterized by rapid innovation, unsettled use cases, and a chaotic market ecosystem. Surprisingly, it also shows a few mature market signals, particularly in operational approaches. According to the study:
- The majority of respondents' ambitions with GenAI include AI agents, innovation and creativity gains, and transformational customer service. Over two-thirds are considering AI agents for specific use cases or plan to extensively integrate AI agents into various operations aspects, representing a significant opportunity for AI vendors to target these requirements with capabilities and services.
- There is a clear indicator of a preference for developing in-house expertise, with 77% of organizations seeing value in training their own GenAI models, However, more than half of respondents say they are likely to consider vendors/suppliers that incorporate GenAI in their products/services—a signal that many organizations are considering which GenAI capabilities should represent core capabilities versus tasks and applications that are better outsourced.
- Early adopters appear to understand the risk associated with GenAI, and organizations are taking steps to develop formal policies and programs for responsible use of AI. For example, 30% of organizations have such policies in place, while another 37% have limited policies but are actively developing governance frameworks.
"What we are learning from organizations who have put GenAI into production is extremely revealing," said Mark Beccue, Principal Analyst at Enterprise Strategy Group. "Generative AI has reached a compelling point reflecting classic technology disruption signals, such as unsettled use cases and limited best practices. But at the same time, the market is showing a remarkable ability to quickly adopt critical operational approaches, such as responsible AI policies and frameworks, GenAI lifecycle management, and even a shift in budget ownership from IT to business units. As more organizations test the waters with GenAI, the vast majority are going to need help somewhere along this new journey, whether to support business plans and strategy, identify use cases, find technology providers and partners, or scale usage throughout the organization."
To learn more about this new research, please visit Enterprise Strategy Group.
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Garrett Mann, TechTarget, 617-431-9371, [email protected], https://www.techtarget.com/esg-global/
SOURCE TechTarget
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