A new ServiceNow study reveals that companies investing heavily in generative AI are starting to see positive returns, but most are still in the early stages of adoption and face challenges in scaling the technology across their organizations.
Key findings from the AI Maturity Index: ServiceNow surveyed nearly 4,500 respondents from 21 countries to assess companies’ progress in adopting generative AI:
- The average AI maturity score was 44 out of 100, with the highest score being just 71, indicating that most companies are still in the early stages of AI adoption.
- On average, companies are spending about 9% of revenue on technology, with 15% of that allocated to AI.
- 81% of companies plan to increase AI spending next year, with nearly half planning to boost spending by 5-14%.
Characteristics of AI “pacesetters”: ServiceNow identified a group of companies that are leading the way in AI adoption, dubbed “pacesetters”:
- Pacesetters are not only exploring AI technology options but also focusing on redefining their business processes to leverage AI effectively.
- Strong leadership is crucial for pacesetters, with executives clearly communicating how roles will evolve in an AI-first world.
- Most pacesetters are currently using AI that is built into existing tech platforms from companies like Salesforce, Microsoft, Google, and Adobe.
Balancing incremental improvements and transformative changes: Chris Bedi, ServiceNow’s chief customer officer, emphasizes the need for companies to operate in two modes when it comes to AI:
- Mode one involves making incremental improvements to existing ways of working, which is what most companies are currently doing.
- Mode two is more challenging, requiring companies to redesign departments, jobs, and the entire enterprise from scratch, assuming AI is pervasive and the models are good enough.
- Investments in mode one will pay off as companies look to make more substantive changes to business processes in the future.
Addressing workforce concerns: Bedi acknowledges that workers may fear AI could replace their jobs, but he believes the right response is clarity, not downplaying the technology:
- Employees are hungry for clarity, as they are aware of the AI headlines and may feel anxious if their organization is not making progress in AI adoption.
- Companies should be transparent about their AI plans and how they will impact the workforce to alleviate anxiety and ensure employees feel they are not falling behind.
Analyzing deeper: While the ServiceNow study highlights the progress and challenges companies face in adopting generative AI, it also raises questions about the long-term impact on the workforce and the economy as a whole. As AI becomes more pervasive, it will be crucial for companies to balance the benefits of increased efficiency and innovation with the need to support and retrain employees whose roles may be transformed or displaced by the technology. Additionally, the study emphasizes the importance of leadership and clear communication in guiding organizations through this transformative period, but it remains to be seen how well companies will execute these strategies in practice.
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