BENGALURU: As Generative AI has the potential to transform organisations, the majority of firms face both external and internal pressure to adopt the new-age technology, according to Deloitte's new findings.
The survey 'State of AI- Insights from India' points out that over 95% of respondents feel the pressure to adopt this new technology and only the Energy, Resources & Industrials sector is facing limited external pressure as the segment does not require significant AI depth.
Indian participants are highly price-sensitive in adopting Gen AI models as nearly 50% of Indian respondents cited pricing as the primary factor, followed by the overall performance and flexibility.
About 75% of the survey participants believe Gen AI has the potential to transform their organisations and industry within the next three years and 70% think Gen AI would have the potential to transform their organisations in 1-3 years.
Also, 48% of respondents expect similar transformation across their industry, highlighting the growing urgency across sectors. Despite progress in data management, strategy and tech infrastructure, where over 40% of respondents reported high levels of preparedness to adopt GenAI, the report reveals considerable gaps. In risk, governance and talent, only 25% of participants admitted to being highly prepared in these critical areas.
Gen AI has bolstered productivity and improved efficiency, with 42% of respondents indicating this as the most important benefit their organisation has achieved through Gen AI initiatives. This aligns with initial expectations of GenAI, where 61% cited improved efficiency and productivity as a key benefit desired.
S Anjani Kumar, partner, Deloitte India, said: “Generative AI has the potential to redefine the future of work by unlocking unprecedented efficiencies, productivity and innovation across industries. However, to fully harness its transformative power, CEOs and senior leaders must prioritise its adoption and address the inherent challenges head-on.
This means moving beyond surface-level understanding and tackling obstacles such as implementation complexities, investment, risk management and talent gaps."
The report also stresses on the preparedness for Gen AI. While participants exhibit higher readiness in data management, strategy and tech infrastructure, there is a notable need for improvement in risk & governance and talent.
Though investments in GenAI are on the rise, focusing on data management, cloud consumption and AI/ML capabilities, only less than 20% of the overall AI budget is currently dedicated to GenAI in over 50% of the organisations surveyed.
One of the primary roadblocks with Gen AI is using sensitive data in models, with 68% indicating it as a significant concern. Other key barriers to GenAI adoption include data privacy and security concerns, with 65% of respondents citing significant challenges. Firms with less AI expertise struggle with talent acquisition and skills development, while more experienced companies face implementation hurdles, the report added.