\u201cUnfortunately, there is no one size fits all with GenAI, and costs aren\u2019t as predictable as other technologies,\u201d said Sallam. \u201cWhat you spend, the use cases you invest in and the deployment approaches you take, all determine the costs. Whether you\u2019re a market disruptor and want to infuse AI everywhere, or you have a more conservative focus on productivity gains or extending existing processes, each has different levels of cost, risk, variability and strategic impact.\u201d<\/p>\n\n\n\n
Regardless of AI ambition, Gartner research indicates GenAI requires a higher tolerance for indirect, future financial investment criteria versus immediate return on investment (ROI). Historically, many CFOs have not been comfortable with investing today for indirect value in the future. This reluctance can skew investment allocation to tactical versus strategic outcomes.<\/p>\n\n\n\n
Realising business value<\/strong><\/p>\n\n\n\n Earlier adopters\u00a0across industries and business processes are reporting a range of business improvements that vary by use case, job type and skill level of the worker. According to a recent Gartner survey, respondents reported 15.8% revenue increase, 15.2% cost savings and 22.6% productivity improvement on average. The survey of 822 business leaders was conducted between September and November 2023.<\/p>\n\n\n\n \u201cThis data serves as a valuable reference point for assessing the business value derived from GenAI business model innovation,\u201d said Sallam. \u201cBut it\u2019s important to acknowledge the challenges in estimating that value, as benefits are very company, use case, role and workforce specific. Often, the impact may not be immediately evident and may materialise over time. However, this delay doesn\u2019t diminish the potential benefits.\u201d<\/p>\n\n\n\n Calculating business impact<\/strong><\/p>\n\n\n\n By analysing the business value and the total costs of GenAI business model innovation, organisations can establish the direct ROI and future value impact, according to Gartner. This serves as a crucial tool for making informed\u00a0investment decisions\u00a0about GenAI business model innovation.<\/p>\n\n\n\n \u201cIf the business outcomes meet or exceed expectations, it presents an opportunity to expand investments by scaling GenAI innovation and usage across a broader user base, or implementing it in additional business divisions,\u201d said Sallam. \u201cHowever, if they fall short, it may be necessary to explore alternative innovation scenarios. These insights help organisations strategically allocate resources and determine the most effective path forward.\u201d<\/p>\n\n\n\n