A new report by MIT Technology Review Insights, in partnership with Snowflake, reveals that 78% of global companies are not “very ready” to support the deployment of generative artificial intelligence (Gen AI). This is despite expectations that generative AI will transform business processes, mainly due to weak data strategies.
The survey, conducted among more than 275 business leaders across various industries, found that the majority of organisations lack the robust data foundations necessary to fully capitalise on AI’s potential. Without a solid data framework, four out of five companies are unable to harness the productivity and innovation benefits promised by Gen AI, claims the “Data Strategies for AI Leaders” report.
The findings highlight that 72% of businesses aim to use AI to increase operational efficiency. Additionally, 47% of respondents are focused on developing new products and services using AI. These figures indicate that while organisations see AI as a driver of transformation, poor data infrastructure hampers their ability to fully leverage these opportunities. Interestingly, only 30% of companies see AI as a primary driver of revenue growth, and just 24% expect it to reduce costs.
The report also noted that 44% of companies are prioritising AI to improve customer satisfaction, suggesting a strong focus on both internal efficiencies and enhanced customer experiences.
Despite the optimism surrounding AI, the report identifies data governance, security, and privacy as the most pressing concerns for businesses. In fact, 59% of business leaders prioritise these issues when integrating AI systems. Data quality and timeliness were also cited as challenges by 53% of respondents, while 48% raised concerns about data silos and integration difficulties.
These figures highlight that businesses face a range of long-standing data management issues that are being amplified by AI’s growing role. Addressing these concerns is crucial for companies looking to scale their AI initiatives.
The report underscores that companies with stronger data foundations are already seeing the benefits of generative AI. Siemens Energy, for example, used an AI-powered chatbot to process and retrieve information from over 700,000 internal documents, significantly boosting productivity.
However, only 22% of businesses rate their data foundations as “very ready” for generative AI, with 53% describing them as only “somewhat ready.” This gap in readiness leaves many organisations exposed to risks such as inaccurate AI outputs and scaling difficulties.
Future outlook on Gen AI adoption
The study concludes that while AI holds great promise, companies must prioritise data quality, governance, and security to maximise its potential. Organisations that invest in improving their data infrastructure will be better positioned to leverage generative AI for efficiency, product innovation, and customer satisfaction.
A recent survey commissioned by Google Cloud and conducted by the National Research Group revealed that up to 86% of early adopters of Gen AI have reported revenue increases of more than 6%. The study surveyed 2,500 C-suite executives from enterprises generating over $10m in revenue. It also highlighted that 61% of these executives are already utilising Gen AI in at least one production application.
Read more: Don’t count generative AI out just yet, says Capgemini’s Steven Webb
