Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - Organizations are beginning to create structures and processes to capture value from generative AI (gen AI), with larger companies leading the way [2] - The use of AI, including both generative and analytical AI, is gaining momentum, with over 75% of organizations reporting AI usage in at least one business function [2] - CEO oversight of AI governance is correlated with higher reported bottom-line impact from gen AI use, particularly in larger organizations [3][5] - The redesign of workflows is identified as the most impactful attribute for organizations to see EBIT impact from gen AI [4][7] - Organizations are increasingly addressing gen-AI-related risks, with a focus on inaccuracy, cybersecurity, and intellectual property infringement [20][23] Summary by Sections Organizational Changes and AI Deployment - Companies are redesigning workflows and elevating governance to drive bottom-line impact from gen AI [2] - 21% of organizations using gen AI have fundamentally redesigned some workflows [7] - CEO oversight is crucial, with 28% of organizations reporting their CEO oversees AI governance [5] AI Governance and Management Practices - Effective AI implementation requires a top-down approach, with C-suite commitment essential for transformation [9][10] - Organizations are selectively centralizing elements of AI deployment, particularly in risk and compliance [12] - Less than one-third of organizations follow most best practices for gen AI adoption and scaling [28][31] Workforce Impact and Hiring Trends - There is a growing need for AI-related roles, with 50% of respondents indicating a need for more data scientists in the next year [40] - Organizations are reskilling employees due to AI use, with expectations for increased reskilling in the next three years [45] - A plurality of respondents expect no immediate change in workforce size due to gen AI, although some functions may see reductions [51][56] AI Usage and Functionality - 78% of organizations report using AI in at least one business function, up from 72% in early 2024 [58] - The most common functions for AI use include IT, marketing and sales, and service operations [66] - Organizations are increasingly using gen AI across multiple functions, with an average of three business functions reported [59] Risk Management and Compliance - Organizations are ramping up efforts to mitigate risks associated with gen AI, particularly inaccuracy and cybersecurity [20][23] - Larger organizations are more likely to manage potential risks effectively compared to smaller ones [23] Future Outlook - The report suggests that organizations that think big and pursue transformative change will gain a competitive advantage from their AI efforts [25][26] - As organizations become more fluent with AI, it is expected to be embedded in all functions, allowing leadership to focus on higher-level tasks [11]