Unleashing the Power of GenAI: A Strategic Imperative for Businesses in the Digital Economy

Digital Transformation is an ever-evolving field, and businesses are struggling to keep up with its rapid evolution. Although digital strategies are a key component of any transformation strategy, few new technologies offer as much promise as Generative Artificial Intelligence, or GenAI, to revolutionize the way in which work is done.

Exponential spending growth on digital transformation technologies

Leading companies know how crucial it is to invest in new technologies sooner rather than later. From adapting existing software to training associates to utilizing new tools for current and future needs, IT is one of any company’s most important investments. Additionally, with such a nascent technology like GenAI, companies need a trusted advisor to support them, from the earliest stages of conceptualizing what is even possible through the successful delivery and associate value creation of the strategies employed.

This is one of the myriad reasons corporate investments in digital transformation initiatives have been growing exponentially and will continue to do so as new sectors embrace the need for change. According to Statista, from a base of just under one trillion dollars in 2017, global spend on digital transformation nearly doubled by 2022. And by 2026, total spending on digital transformation and services worldwide is expected to reach 3.4 trillion dollars.

With so much at stake, business leaders need to ask whether their companies are setting aside the resources required to compete in the ever-accelerating digital economy. And whether they are working with the right partner to ensure they are not only playing in the game but positioned to win it.

Companies are prioritizing new areas of IT Technology

IT’s rapid transformation and embrace of GenAI mean companies must reexamine their priorities, expanding IT budgets judiciously to get the most bang for their buck.

But companies also need to know how and where to use it to be effective. Nir Kaldero, NEORIS Chief Data, Analytics, & AI Officer, advises, “in order to accelerate the value of GenAI for enterprises, it’s crucial to prioritize the use cases carefully and figure out a strategy on how to embed these new technological capabilities within an enterprise’s current platforms that people already use on a daily basis to augment their workflows and decision-making processes.”

A recent report by Boston Consulting Group found that 89% of business leaders ranked AI and GenAI among their top three tech priorities for 2024, with 85% indicating they will increase spending on AI and GenAI this year. More than 50% of these companies expect AI to generate cost reductions in 2024 realized through productivity gains in IT, operations, and customer service. Moreover, >70% plan to increase tech investments in 2024, versus 60% in 2023.

The significance of this research is that regardless of the sector, whether it be supply chain, marketing, product making, or research and analysis, companies aim to stay ahead of the game while safeguarding data integrity. However, understanding what needs to be done as a company leader is only half the answer. One requires the right partner with technological expertise and experience to navigate the company through the transformation journey.

The threat from IT training gaps

Companies are hitting roadblocks in their transformations. Shockingly, these barriers are sometimes within the companies themselves.

While most of them recognize the importance of Digital Transformation, many struggle to prioritize training in this area. According to BCG’s research, companies know they are falling behind, with only 6% having trained more than 25% of their staff on GenAI at the time of the survey. In addition, 45% of leaders explained they do not yet have restrictions or guidelines on AI and GenAI use in their companies.

Businesses understand investing in IT development is a priority, but they appear unable to provide dedicated training for their staff on their own. Companies must urgently examine how they can fill that gap before it is too late, and it impacts their bottom-line.

The future will only get faster

In a recent Gartner webinar poll of more than 2,500 executives, 38% said customer experience and retention is the primary reason for investing in Generative AI, followed by revenue growth at 26%, cost optimization at 17% and business continuity at 7%.

Based on this research, Gartner also made several predictions about the future of AI: “By 2024, 40% of enterprise applications will have embedded conversational AI, up from less than 5% in 2020. By 2025, 30% of enterprises will have implemented an AI-augmented development and testing strategy, up from 5% in 2021. By 2026, generative design AI will automate 60% of the design effort for new websites and mobile apps. By 2027, nearly 15% of new applications will be automatically generated by AI without a human in the loop. This is not happening at all today.”

The possibilities are clearly endless and an opportunity companies must get a handle on.

Choosing the right partner for your digital journey

With so many unknowns, choices and changes, companies need to find a client-centric partner to help them navigate their digital transformation, while providing the training necessary to drive bottom line efficiencies and results.

At NEORIS, we have already adopted many of these AI technologies for in-house use, including selecting our consultants’ resumes and profiles based on their specific work-related experiences to best match each individual client’s requirements for a project. We have also used it to develop and analyze surveys for our talents to better serve their needs.

Other use cases have included embedding GenAI in a client’s dashboard allowing it to become intelligent through Smart Insights and Conversational abilities with the data. This improved oversight of cement company Cemex’s fulfilment sites provided tangible, cost-effective outcomes by helping them reduce expenses, increase worker safety, improve delivery timetables while also having a positive impact on the environment through shortened truck wait times, among many other benefits.

NEORIS projects have also helped companies improve customer service, satisfaction and retention. For example, our Conversational Chatbot with Memory powered by GenAI works in a natural way and collects and tracks data to further hone algorithms and improve customer interactions.

At the forefront of revolutionizing customer service, satisfaction, and retention through advanced digital solutions, NEORIS offers expertise and innovative technologies that enable businesses to unlock new levels of success in the digital era.

Find out more about how companies can be guided through the GenAI adaptation and development process, by taking a look at our work as an Intelligence Accelerator.