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Generative AI is making waves, with its potential to transform industries and redefine productivity. However, businesses must move beyond the hype and focus on the tangible, scalable Generative AI benefits it can deliver. To uncover the practical implications, Zinnov surveyed 320 C-suite executives and senior VPs from Fortune 1000 companies in North America and Western Europe. The findings reveal the nuanced financial benefits that Generative AI can bring to businesses and also provide valuable insights for Technology Service Providers to capitalize on this technology.
One of the key areas where Generative AI can make an immediate impact is cost efficiency. Processes like Testing and QA, Data Analytics, and Technical Documentation, which heavily influence CTO budgets, can see significant savings with the implementation of Generative AI.
For CIO workflows, Customer Service and Technical Support are anticipated to be among the early use cases, with Generative AI expected to boost productivity by 30-50% for Customer Service Operations. Similarly, on the CMO front, Content Creation and Campaign Management processes are likely to be early adopters of Generative AI. Notably, over 75% of current Generative AI tools are geared towards content creation across various formats, including text, graphics, audio, video, and images.
As the technology matures, businesses can expect over 15% in cost savings with Generative AI, a substantial portion of which can be reinvested into advancing their technology across various organizational functions.
However, the true power of Generative AI lies not just in the initial cost savings, but in how businesses choose to reinvest those savings strategically. By allocating a portion of the savings towards further developing their Generative AI capabilities, Enterprises can compound the benefits over time. This approach aligns with long-term transformation roadmaps and positions businesses to stay ahead of the curve in an ever-evolving technological landscape.
For Technology Service Providers (SPs), Generative AI presents a unique opportunity to transform their strategies and stay relevant in the face of disruption. To capitalize on this, SPs must prioritize workforce transformations, reskilling their teams in areas such as AI Model Training, Custom Solution Development, and Data Management. By doing so, they can evolve their service portfolios and create new AI-powered offerings that cater to Enterprises still building their internal capabilities.
The first movers in this space have a significant advantage, as they can capture the greenfield market and establish themselves as leaders in the Generative AI domain. SPs have already started gaining strategic knowledge expansion gigs which are set to transform into development and implementation support, and eventually, end-to-end managed Generative AI services within the next 3 years.
The key to success in the Generative AI revolution lies in laying the strategic groundwork today. The journey may not be easy, but the destinations it promises – increased productivity, cost efficiency, and technological superiority – make it a path worth pursuing.
This report, “Generative AI’s Trillion $ Frontier: Services Resilience in a Shifting Tech Spending Paradigm,” is designed to help leaders navigate this significant shift. It provides data-backed insights into the financial implications of Generative AI adoption for Enterprises and Service Providers.
The report offers a forward-looking perspective on how companies can channel cost savings, reinvest in AI capabilities, and transform technology services to maintain a competitive edge. Whether you are a CTO, CIO or Service Provider executive, the analysis and recommendations will guide you in strategizing your Generative AI journey for sustainable growth and success.
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