A recent BCG survey of over 1,400 C-suite executives worldwide reveals that while 89% rank AI and generative AI (GenAI) as a top-three priority for 2024, most companies have yet to realize its full potential. Two-thirds are still ambivalent about their AI progress, with 90% focused only on limited pilots rather than systematic adoption. However, the report identifies key actions that set leading organizations apart in capitalizing on AI’s opportunities.
The survey finds that 71% of executives expect their tech investments, especially in AI, to rise substantially in 2024. Over half anticipate AI driving over 10% in cost savings this year, mainly through boosted productivity. However, only 6% have meaningfully reskilled workers on GenAI so far. And 45% lack guidance on responsible AI use at work, presenting risks.
BCG contends that while interest in AI is clearly growing, most firms are moving too slowly. Rather than waiting years for AI to deliver, leaders are taking concerted action today across five areas:
1. Investing to enhance productivity and spur revenue growth: The top AI adopters are directing expected cost savings into funding new revenue streams for topline growth.
2. Reskilling the workforce systematically: With GenAI altering roles, leading companies are already upskilling over 25% of workers versus 6% overall.
3. Monitoring usage costs vigilantly: With broad GenAI adoption expected, proactive management of escalating licensing and deployment costs is essential.
4. Building an extensive partner ecosystem: Collaborating with AI software vendors and startups provides access to leading-edge capabilities.
5. Instilling responsible AI principles: Issues like ethics and cybersecurity require early attention from the C-suite down.
With GenAI now accessible across organizations, the time for experimentation is over. Leaders recognize that GenAI’s potential is here today, and they are moving decisively to integrate it throughout operations. Other companies still sitting on the sidelines risk missing this opportunity and ceding competitive advantage. BCG recommends pursing GenAI deployment systematically to drive productivity gains of 10-20% in the short term while inventing entirely new AI-powered business models for long-term differentiation. 2023 marked AI’s democratization; 2024 must be the year it translates into business impact.
