The revolutionary impact of generative AI on business

In the world of business technology, generative AI has become a transformative force, promising to revolutionize how businesses operate. Recently, I had the opportunity to discuss the impact of generative AI on business with Pascal Brier, Director of Innovation and Member of the Group Executive Committee at Capgemini. Our conversation revealed fascinating insights into the current state of generative AI adoption, the challenges businesses face, and the exciting future that lies ahead.

The current state of generative AI adoption

Generative AI has quickly become a board priority, with Brier noting that “approximately 96% of boards currently have GenAI on the agenda and have one or two sessions scheduled before the end of the year.” year “. This increased interest has resulted in a significant increase in adoption rates. According to Capgemini researchthe percentage of large companies adopting generative AI increased from 6% last year to 24% this year.

However, the return on investment (ROI) of these adoptions remains relatively low, hovering between 4% and 7%. Brier suggests that this modest return on investment should not be seen as disappointing, but rather as a sign that we are still in the early stages of generative AI’s potential. “If we think this is just the beginning, which I tend to think, and we’re going to get a lot more than that, then we can say that, yes, there has been some hype, but there is a truth behind the hype. It’s only a matter of time,” says Brier.

Challenges of Implementing Generative AI

Although the potential of generative AI is immense, its effective implementation comes with its share of challenges. Brier identifies several key areas that businesses need to focus on to successfully integrate AI into their operations.

First of all, there is the activation of the platform. Organizations need to think carefully about their technology choices and how they will build their overall AI environment. It’s not just about selecting the right software; it’s about creating an ecosystem that can support and scale AI initiatives across the enterprise. Brier emphasizes that this decision is more complex than simply choosing between suppliers. Businesses should consider factors such as integration capabilities, scalability, and alignment with existing IT infrastructure.

Governance is another crucial aspect that businesses often discover when embarking on their AI journey. Managing AI models, ensuring security, maintaining ethical standards, and aligning the use of AI with company culture are all part of this challenge. Brier notes that as AI is increasingly integrated into business processes, companies must establish clear guidelines and monitoring mechanisms to manage potential risks and ensure responsible use of AI.

Identifying the right use cases for AI is also critical to success. Brier suggests three areas of application for generative AI: everyday AI (improving existing applications), AI in products or services, and AI in the innovation journey. Each of these areas presents unique opportunities and challenges. Businesses must carefully evaluate where AI can add the most value to their operations and strategically prioritize their AI initiatives.

Training and skills development emerge as another important challenge. Preparing the workforce for AI adoption is essential to realizing the technology’s full potential. Brier emphasizes the importance of training people not only on technical skills, but also on how to interact effectively with AI systems, understand security and ethical considerations, and recognize the costs associated with AI. use of AI. This holistic approach to AI training helps ensure employees can work alongside AI systems effectively and responsibly.

Finally, responsible use and cost management are crucial considerations. Organizations need to be aware of the financial and environmental costs of implementing AI. Brier points out that while current usage might be moderate, as AI expands throughout the enterprise, these costs will become increasingly significant. Businesses must develop strategies to monitor and manage these costs effectively, balancing the benefits of AI with its resource needs.

The future of AI in business

Looking ahead, Brier sees several exciting trends that will shape the future of AI in the enterprise. One of the key developments is the diversification of AI models. “We’re going to use different types of models,” Brier predicts. This development goes beyond the current emphasis on selecting a single, overarching model. Instead, organizations will likely employ a combination of large, generic models and smaller, specialized models trained for specific needs. This approach allows for greater flexibility and efficiency, tailoring AI capabilities to particular tasks or areas within the business.

Another important trend on the horizon is the emergence of hybrid AI ecosystems. Brier envisions a future in which different types of AI work in concert, creating more sophisticated and capable systems. “Most solutions will use different types of knowledge-based generative AI,” he explains. This hybrid approach combines the strengths of various AI technologies, including traditional machine learning, natural language processing, and other specialized AI tools. By integrating these diverse AI capabilities, businesses can create more robust, versatile, and intelligent systems that can address complex challenges across diverse business domains.

Perhaps the most intriguing development Brier foresees is the rise of AI agents. “Everyone will tell you about agents and agentic systems,” he notes, noting the growing buzz around the concept in tech circles. These AI Agents represent a significant leap forward in terms of AI functionality and autonomy. At their most basic level, AI agents are specialized software robots trained to perform specific tasks on behalf of users. However, the potential of these agents extends far beyond simple task automation. Brier envisions a progression from single-objective agents to complex multi-agent systems capable of interacting with each other and making autonomous decisions. This could revolutionize how businesses operate, with AI agents managing everything from supply chains to customer interactions with minimal human intervention.

Embracing the AI ​​revolution

As we stand on the cusp of this AI revolution, it is clear that the impact of generative AI on the enterprise will be profound and far-reaching. Although challenges remain, particularly in the areas of governance, training and responsible use, the potential benefits are too great to ignore.

Brier’s ideas highlight the importance of a thoughtful and strategic approach to AI adoption. As he says: “There’s no magic formula… businesses need to consider this as one of the five things they need to look at.”

For business leaders, the message is clear: now is the time to engage in generative AI. By understanding its potential, meeting the challenges head on, and preparing for the exciting developments on the horizon, businesses can position themselves to thrive in the AI-powered future that is rapidly unfolding before us.