Generative artificial intelligence (AI), is a trending topic that has emerged in the past five years, and the interest around generative AI for enterprise has also grown rapidly ever since. The recent push into generative AI by companies such as Google and Microsoft has further raised the spotlight on the topic. But for some, the question remains, what is generative AI and what is its purpose?
First off, let’s define the term:
Generative AI refers to a type of artificial intelligence (AI) capable of creating new data, such as images, videos, text, and music, that have never been seen before.
A 2022 McKinsey survey highlighted that AI adoption has more than doubled over the past five years, and investment in AI is swiftly increasing. Unlike other types of AI that are designed to solve specific tasks or problems, generative AI algorithms learn from large amounts of data and then use that knowledge to create new content that is similar to the training data.
There are several different types of generative AI algorithms, these are the top three:
Generative AI models require large amounts of high-quality data to learn from (, making it challenging for successful generative AI for enterprise implementation), and often the data may need to be made available or of better quality. In addition, cleaning and preprocessing the data can be time-consuming and labor-intensive.
Generative AI algorithms can be complex and difficult to understand, making it hard to fine-tune the models for specific use cases. Finding the right algorithm for the given use case and even training the model effectively can be challenging.
Generative AI models require significant computational resources, such as specialized hardware and software. This can be expensive to acquire and maintain, making generative AI for enterprise adoption difficult for smaller businesses without significant resources.
Generative AI models can be used to create fake content such as deep fakes, which can lead to ethical and legal issues. Enterprises must be mindful of the risks of generative AI and ensure they use it responsibly.
Building and deploying generative AI models requires expertise in data science, machine learning, and domain-specific knowledge, which is essential for effective generative AI for enterprise development and deployment. Finding and hiring qualified personnel with the correct skill set can be challenging.
Integrating generative AI models with existing enterprise systems can be challenging. It requires expertise in data storage, data analysis, and visualization tools to ensure that the models are effectively integrated.
That said, generative AI has the potential to drive significant value in enterprises by automating tasks, improving product design, and generating new business opportunities. If done right, the juice is worth the squeeze.
Based on our current and past engagements, here’s the step-by-step process we see working when it comes to making generative AI actionable in enterprises:
All companies are different, but this high-level plan is what we are seeing the most innovation-driven organizations enact as they pursue their generative AI journey. The sooner enterprises can leverage the power of generative AI, the faster they will drive value via new business opportunities, and improve their operations overall.
In the next article, we will dive a bit deeper into generative AI by exploring the topic of synthetic data, and the value that it unlocks for financial services and insurance firms in the age of rapid AI and ML adoption.
Generative AI for enterprise holds potential across various industries, with some of the most promising sectors being marketing and advertising (generating personalized content, ad copy, and product descriptions), finance (creating synthetic financial data for risk modeling and testing trading strategies), healthcare (designing new drugs, generating medical images, and creating personalized treatment plans), manufacturing (optimizing product designs, generating synthetic data for training quality control models, and automating customer service), and entertainment (creating new music, art, and video game content).
Generative AI can elevate customer experience by enabling personalization (tailored product recommendations, targeted marketing messages, and customized user interfaces), automation (automating customer service interactions, providing 24/7 support, and resolving issues faster), innovation (generating new product ideas, features, and services), and efficiency (streamlining customer service workflows, reducing response times, and freeing up human agents).
Measuring the ROI of generative AI for enterprise initiatives can be challenging, but it's important. Key metrics to consider include cost savings (reduction in labor costs, time savings, and operational efficiency gains), revenue growth (increase in sales, customer acquisition, and market share due to AI-generated innovations), customer satisfaction (improvement in metrics like Net Promoter Score and customer retention), and innovation (number of new product ideas, patents, or creative outputs generated by AI).
Successfully integrating generative AI for enterprise requires a strategic approach. Start with a clear business case, defining specific goals and identifying use cases. Build a cross-functional team with diverse expertise. Invest in high-quality, relevant data to train your AI models. Begin with pilot projects to test feasibility before scaling up. Continuously monitor and optimize your AI models for optimal results. Foster a culture of experimentation within your team to unlock the full potential of generative AI.
