Generative AI in Enterprises: IT Leaders Take Risks on Technology Amid Security Concerns

Enterprise IT Teams Rapidly Embrace Generative AI

A recent report from Glean and ISG highlights the swift adoption of generative artificial intelligence systems, such as ChatGPT, by enterprise IT teams.

IT leaders view generative AI as a transformative technology and are prepared to boost budgets and take calculated risks for its implementation across their organizations.

The survey, which included 224 IT executives from major U.S. and European companies, indicates that budgets for generative AI projects are projected to nearly triple from 2023 to 2025, rising from an average of 1.5% to 4.3% of IT budgets. Larger entities, particularly those with revenues exceeding $5 billion, plan to allocate over 10% of their budgets toward generative AI by 2025.

“Today's IT leaders have navigated numerous technological hype cycles, and this study illustrates that they perceive generative AI as a true game-changer,” stated Arvind Jain, CEO of Glean. “Companies are accelerating their investments in generative AI like never before.”

Rapid Adoption Amid Potential Risks

The report reveals that IT leaders are making significant investments in generative AI, anticipating a substantial return: a projected 7% increase in global GDP over the next decade and a 40% boost in worker productivity.

However, the report also addresses the rising threat of shadow IT, where employees utilize unapproved generative AI tools, creating serious security vulnerabilities. Alarmingly, 73% of respondents view these unauthorized tools as a business risk, while 57% admit they are common in their organizations.

Surprisingly, 34% of respondents are willing to adopt generative AI rapidly, even with the potential for negative outcomes. Only 8% expressed concerns about the technology evolving too quickly. Currently, just 28% report a clear return on investment (ROI) from their generative AI projects; 31% believe they see returns but lack solid evidence. Notably, 46% of early pilots have yielded unexpectedly positive results.

Challenges in Measuring ROI

While productivity gains are the primary metric for assessing ROI, few organizations have systematic methods in place to quantify these benefits. As investments in generative AI escalate, refining evaluation practices will become essential.

The findings indicate that generative AI could revolutionize enterprise technology. Yet, this rapid deployment is challenging IT teams that are more accustomed to cautious approaches. Achieving a balance between innovation and risk management will be critical as the AI landscape evolves.

For a deeper dive into the report, visit Glean's website or read Arvind Jain’s blog post analyzing the survey results.