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Enterprise IT teams are rapidly adopting generative artificial intelligence systems like ChatGPT, according to a new report from Glean and ISG. The study reveals that IT leaders view generative AI as transformative, leading them to increase budgets and take on risks to implement this technology throughout their organizations.
The report surveyed 224 IT executives at large companies in the U.S. and Europe. It found that budgets for generative AI projects are expected to nearly triple from 2023 to 2025, growing from an average of 1.5% of IT budgets to 4.3% within two years. Larger companies, particularly those with revenues over $5 billion, plan to allocate even more, with 26% budgeting over 10% towards generative AI by 2025.
Arvind Jain, CEO of Glean, noted that IT leaders have seen numerous hype cycles but perceive generative AI as distinctly transformative. Companies are investing and deploying this technology at an unprecedented pace.
Despite potential risks, the report highlights IT leaders’ significant investment in generative AI, anticipating substantial returns such as a 7% increase in global GDP over ten years and a 40% rise in worker productivity. However, there is a growing threat of shadow IT, where employees use unvetted generative AI tools, creating significant security risks. A notable 73% of respondents view these unauthorized tools as a business threat, yet 57% acknowledge their prevalence in their organizations.
Interestingly, 34% of survey respondents are willing to implement generative AI quickly, even if it might lead to negative consequences. Only 8% cited the rapid pace of technological change as their biggest concern. While just 28% reported definitively achieving positive ROI from current generative AI projects, another 31% believe they are seeing returns but lack concrete data. Early pilots, however, have shown promising results, with 46% seeing better-than-expected outcomes.
The report indicates that productivity gains are the primary metric for measuring ROI, but few respondents have systematic methods to quantify the benefits. As investments increase, better evaluation practices will be necessary. The findings suggest that generative AI could fundamentally change enterprise technology, but the rapid deployment pace is challenging IT teams accustomed to more cautious adoption. Balancing innovation with risk management will be crucial in this evolving AI landscape.