Korea Deloitte Group "Generative AI Investment Up... Interest Among Corporate Senior Executives Declines"

‘2024 Q3 Report on Corporate Use of Generative AI’

While global investment in generative artificial intelligence (AI) has increased, the interest of senior executives and boards of directors in each company has declined.

On the 25th, the Korea Deloitte Group, composed of Deloitte Anjin Accounting Corporation and Deloitte Consulting Korea, announced that it had published the "Corporate Use of Generative AI Status Q3 2024" report. The report contains the results of a survey conducted on 2,770 executives from 14 countries including the United States, the United Kingdom, India, and Japan.

[Provided by Korea Deloitte Group]

Each corporate organization has succeeded in deriving actual value through the adoption of generative AI, and 67% responded that they are increasing their investment in generative AI. Among all respondents, 42% cited improved efficiency and productivity and cost reduction as key outcomes of generative AI initiatives, but 58% said other benefits such as innovation promotion (12%), product and service improvement (10%), and strengthening customer relationships (9%) were greater.

Senior executives (63%) and boards of directors (53%) still showed high interest in generative AI, but these figures fell by 11 percentage points and 8 percentage points respectively compared to the first quarter. The majority of respondents (68%) answered that less than 30% of their organization’s generative AI experiments have been integrated into business and moved to the utilization stage.

Regarding the expansion of generative AI initiatives, respondents said that technological infrastructure (45%) and data management (41%) were the best prepared, while strategy (37%), risk and governance (23%), and talent (20%) were found to be insufficiently prepared.

The biggest concerns were the use of sensitive data (58%), data privacy issues (58%), and data security issues (57%). Organizations also face difficulties in defining and measuring the exact impact of generative AI. Although a majority (54%) of organizations aim for efficiency and productivity improvements, only 38% track changes in employee productivity. Only 16% of organizations reported preparing regular reports for chief financial officers (CFOs).

The report advised that generative AI should be utilized appropriately to realize efficiency, productivity, and cost savings, and to create more value. It is also essential to measure performance with stricter standards. Jin-suk Kim, partner of the Risk Advisory division at Korea Deloitte Group, pointed out, “Now, continuous value must be created through generative AI initiatives. For this, the organization’s AI value creation in data and governance, risk, and regulations has become more urgent.”

This content was produced with the assistance of AI translation services.