CFOtech Australia - Technology news for CFOs & financial decision-makers
Story image

Organisations struggle with GenAI ROI despite strategies

Tue, 19th Nov 2024

Research from NTT DATA reveals that organisations worldwide are experiencing stunted returns on investment from artificial intelligence (AI) endeavors, despite the majority having well-defined generative AI (GenAI) strategies.

Findings from the 'Global GenAI Report: How organisations are mastering their GenAI destiny in 2025' indicate that while organisations are moving from experimentation to transformation with GenAI, many struggle to align these strategies with broader business objectives.

NTT DATA's research involved over 2,300 business and IT leaders across 12 industries and 34 countries, identifying common themes and challenges organisations face in leveraging GenAI technologies.

President and Chief Executive Officer of NTT DATA Group, Yutaka Sasaki, noted, "The future is clear. Generative AI is more than just another tool — it's a transformative force. As we move beyond experimentation, a tension emerges: move too fast, and we risk unintended circumstances; move too slow and we fall behind. Getting GenAI right isn't optional. That's why we're providing a blueprint to help our clients harness its potential for lasting success."

The study highlights that while 64% of C-suite executives recognize GenAI as a "game changer," skepticism persists at other organisational levels. More than 90% of respondents cited legacy infrastructure as a barrier to effective GenAI utilisation, and 82% expressed concerns that regulatory uncertainty could impede deployment and innovation.

NTT DATA's report also emphasizes the anticipation of significant business transformation driven by GenAI, with 97% of CEOs expecting a material impact from this technology. However, a gap remains as 83% have a defined GenAI strategy, but only 49% have aligned these plans with their business goals, affecting ROI and strategy satisfaction.

Abhijit Dubey, Chief Executive Officer of NTT DATA, Inc., stated, "This is a powerful point in world history as GenAI is shaping up to be a huge force in our tech-enabled economy. In supporting and driving this next era, NTT DATA feels an acute responsibility to our clients, our people and society to ensure that everything we design, implement, deploy and manage is highly resilient, capable and responsible."

The report finds a shift towards specific and phased approaches, as nearly all surveyed organisations plan further investment in GenAI. Yet, the ongoing challenge of balancing innovation with ethics, safety, and sustainability remains critical, as 81% of respondents highlighted the importance of leadership in guiding this balance.

Main uses of GenAI identified by the report include personalised service recommendations, quality control, and research and development. Most respondents foresee these applications significantly enhancing productivity, efficiency, sustainability, and business processes.

Despite these potential benefits, challenges such as skills gaps, with 67% of employees lacking the expertise for GenAI use, persist. Consequently, around half of the organisations plan to invest in education and training to drive GenAI adoption.

Other obstacles include user resistance, limited awareness, and concerns over GenAI's safety and security. Almost all respondents agree that cloud-based solutions are vital for supporting GenAI applications, a sentiment echoed by 96% of Chief Information Officers and Chief Technology Officers surveyed.

The survey results underscore the transformative potential of GenAI while also highlighting significant hurdles. 72% of organisations lack a GenAI usage policy, including guidelines for protecting intellectual property, and 82% believe unclear government regulations on AI complicate strategic planning and investment.

Overall, these findings point to a period of adjustment and refined strategies for organisations committed to leveraging GenAI as a transformative tool in their operations and industries.

Follow us on:
Follow us on LinkedIn Follow us on X
Share on:
Share on LinkedIn Share on X