GenAI Delivering Strong ROI

Google Cloud says Among those with GenAI in production, 86% of those report an increase in revenue, estimating growth of 6%+

The majority of executives (61%) are harnessing the power of generative AI, with at least one application in production, and among these early adopters, 86% of those reported an increase in revenue, estimated at more than 6%, according to new  global research from Google Cloud.

The survey found that GenAI initiatives that are in production are driving benefits in four primary areas:

■ Productivity: Almost half (45%) of executives who reported improved productivity indicated that employee productivity has at least doubled as a result of GenAI rollouts at their organizations.

■ Security: 56% of executives reported that GenAI has bolstered their organization's security posture, with 82% of those execs citing improved ability to identify threats and 71% reporting a reduction in time to resolve a security issue.

■ Business growth: 77% of execs reporting business growth said they have improved leads and customer acquisition as a result of GenAI solutions.

■ User experience: 85% of executives reporting an improved user experience indicated specifically that user engagement has increased from GenAI, and nearly the same number reported improved user satisfaction (80%).

"Generative AI is not just a technological innovation; it's a strategic differentiator," said Oliver Parker, VP, Global Generative AI Go-To-Market, Google Cloud. "Our research shows that early adopters of GenAI are reaping significant rewards, from increased revenue, to better customer service, to improved productivity. Organizations investing in GenAI today are the ones that will be best positioned to succeed in the coming decade."

C-Suite Champions Key to Closing GenAI Adoption Gap

The speed by which organizations move from piloting GenAI to full-scale production is a strong indicator of its success, according to the research. Of the executives surveyed that are currently leveraging GenAI in production, 84% say their organizations were able to move from pilot to production in under six months.

However, a significant adoption gap remains: 39% of enterprises overall have still yet to implement the technology in production, with 21% actively testing, 12% evaluating use-cases, and 5% not started. This lag is particularly pronounced in regulated industries like financial services and manufacturing. In the EMEA region, organizations are significantly less likely to have been leveraging GenAI in production for more than one year.

C-Suite champions are key to GenAI success as 91% of respondents with robust C-level support of GenAI at their organization also report increased revenue estimates of 6% or more.

Additionally, "GenAI Leaders" — organizations that extensively utilize and invest in generative AI — exhibit key characteristics that set them apart:

■ Strategic alignment: 76% of leaders effectively aligned their AI strategies with broader business goals, compared to the global average of 69%.

■ Dedicated teams: 54% of leaders invested in dedicated generative AI teams, 13% more than their counterparts.

■ Significant investment: A staggering 86% of leaders plan to allocate at least half of their future AI budgets to generative AI, a stark contrast to the 67% average.

"Our data underscores the importance of executive-level support and strategic alignment for maximizing the potential of generative AI," said Carrie Tharp, VP, Strategic Industries, Google Cloud. "By connecting financial business drivers with technology drivers, organizations can ensure that AI strategies are not just innovative but also tightly intertwined with core business goals. This strategic alignment is the key to escaping the dreaded 'pilot purgatory,' and accelerating towards tangible business impact, leveraging AI to transform operations, enhance customer experiences, and unlock new avenues for growth."

An Emerging GenAI Reinvestment Cycle: Technology, Talent and Data

The early success of GenAI is sparking a reinvestment cycle that's driving further innovation and growth. Nearly half of respondents surveyed (49%) plan to reinvest the gains from GenAI to further improve operating profit margins. Specifically, the topic three areas for investment are:

■ Technology: 47% plan to invest in aligning business and technology to support change management for user adoption of AI.

■ Talent: 46% plan to invest in upskilling their workforce and attracting new talent with AI expertise.

■ Data quality: 43% said they plan to invest in data quality and knowledge management to ensure their GenAI applications are built on a solid foundation of accurate and reliable data

"The most successful organizations aren't just implementing GenAI. They're fostering a culture of innovation through experimentation," Parker added. "By reinvesting early gains in technology, talent, and data, these companies are building a sustainable AI ecosystem, creating a flywheel of innovation that will continue to drive growth and competitive advantage in the years to come."

Methodology: The report is based on a survey of 2,508 senior leaders of global enterprises ($10M+ revenue), conducted by Google Cloud and National Research Group from February 23-April 5. The survey respondents represent organizations from North America, Latin America, EMEA, and APAC, and across key industries including Financial Services, Manufacturing & Automotive, Retail & Consumer Packaged Goods, Telecommunications, Healthcare & Life Sciences, and Media & Entertainment.

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GenAI Delivering Strong ROI

Google Cloud says Among those with GenAI in production, 86% of those report an increase in revenue, estimating growth of 6%+

The majority of executives (61%) are harnessing the power of generative AI, with at least one application in production, and among these early adopters, 86% of those reported an increase in revenue, estimated at more than 6%, according to new  global research from Google Cloud.

The survey found that GenAI initiatives that are in production are driving benefits in four primary areas:

■ Productivity: Almost half (45%) of executives who reported improved productivity indicated that employee productivity has at least doubled as a result of GenAI rollouts at their organizations.

■ Security: 56% of executives reported that GenAI has bolstered their organization's security posture, with 82% of those execs citing improved ability to identify threats and 71% reporting a reduction in time to resolve a security issue.

■ Business growth: 77% of execs reporting business growth said they have improved leads and customer acquisition as a result of GenAI solutions.

■ User experience: 85% of executives reporting an improved user experience indicated specifically that user engagement has increased from GenAI, and nearly the same number reported improved user satisfaction (80%).

"Generative AI is not just a technological innovation; it's a strategic differentiator," said Oliver Parker, VP, Global Generative AI Go-To-Market, Google Cloud. "Our research shows that early adopters of GenAI are reaping significant rewards, from increased revenue, to better customer service, to improved productivity. Organizations investing in GenAI today are the ones that will be best positioned to succeed in the coming decade."

C-Suite Champions Key to Closing GenAI Adoption Gap

The speed by which organizations move from piloting GenAI to full-scale production is a strong indicator of its success, according to the research. Of the executives surveyed that are currently leveraging GenAI in production, 84% say their organizations were able to move from pilot to production in under six months.

However, a significant adoption gap remains: 39% of enterprises overall have still yet to implement the technology in production, with 21% actively testing, 12% evaluating use-cases, and 5% not started. This lag is particularly pronounced in regulated industries like financial services and manufacturing. In the EMEA region, organizations are significantly less likely to have been leveraging GenAI in production for more than one year.

C-Suite champions are key to GenAI success as 91% of respondents with robust C-level support of GenAI at their organization also report increased revenue estimates of 6% or more.

Additionally, "GenAI Leaders" — organizations that extensively utilize and invest in generative AI — exhibit key characteristics that set them apart:

■ Strategic alignment: 76% of leaders effectively aligned their AI strategies with broader business goals, compared to the global average of 69%.

■ Dedicated teams: 54% of leaders invested in dedicated generative AI teams, 13% more than their counterparts.

■ Significant investment: A staggering 86% of leaders plan to allocate at least half of their future AI budgets to generative AI, a stark contrast to the 67% average.

"Our data underscores the importance of executive-level support and strategic alignment for maximizing the potential of generative AI," said Carrie Tharp, VP, Strategic Industries, Google Cloud. "By connecting financial business drivers with technology drivers, organizations can ensure that AI strategies are not just innovative but also tightly intertwined with core business goals. This strategic alignment is the key to escaping the dreaded 'pilot purgatory,' and accelerating towards tangible business impact, leveraging AI to transform operations, enhance customer experiences, and unlock new avenues for growth."

An Emerging GenAI Reinvestment Cycle: Technology, Talent and Data

The early success of GenAI is sparking a reinvestment cycle that's driving further innovation and growth. Nearly half of respondents surveyed (49%) plan to reinvest the gains from GenAI to further improve operating profit margins. Specifically, the topic three areas for investment are:

■ Technology: 47% plan to invest in aligning business and technology to support change management for user adoption of AI.

■ Talent: 46% plan to invest in upskilling their workforce and attracting new talent with AI expertise.

■ Data quality: 43% said they plan to invest in data quality and knowledge management to ensure their GenAI applications are built on a solid foundation of accurate and reliable data

"The most successful organizations aren't just implementing GenAI. They're fostering a culture of innovation through experimentation," Parker added. "By reinvesting early gains in technology, talent, and data, these companies are building a sustainable AI ecosystem, creating a flywheel of innovation that will continue to drive growth and competitive advantage in the years to come."

Methodology: The report is based on a survey of 2,508 senior leaders of global enterprises ($10M+ revenue), conducted by Google Cloud and National Research Group from February 23-April 5. The survey respondents represent organizations from North America, Latin America, EMEA, and APAC, and across key industries including Financial Services, Manufacturing & Automotive, Retail & Consumer Packaged Goods, Telecommunications, Healthcare & Life Sciences, and Media & Entertainment.

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The Corporate Network Is Fading - Here's What Replaces It

For decades, enterprise networks were designed around a simple assumption: work happened inside the office. Applications lived in centralized data centers, employees connected through internal infrastructure, and security focused on protecting the perimeter that surrounded everything ... But the way organizations operate today bears little resemblance to that environment. Cloud platforms host critical applications, employees connect from homes and airports as often as they do from offices, and partners collaborate through shared systems that exist far beyond corporate walls. In short, the corporate network no longer resembles the environment it was designed to protect ...

IT Leaders Must Establish a Network Data Architecture Practice

As an analyst who researches how IT organizations design, build, and operate their networks, I find that network data is a constant source of pain. Network teams struggle with data quality, fragmentation, authority, access, and trust. And these issues undermine everything they try to do. Here are the numbers: Only 45% of network teams are completely confident in the accuracy of their network source of truth, which documents the intent of their network ...

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Enterprises operate different combinations of workloads across cloud, hybrid and multicloud environments. For business-critical workloads, teams need to consider monitoring and observability early so they can detect health issues, investigate failures, and understand operational impact. Organizations place workloads on cloud platforms based on a combination of technical requirements, economics, existing dependencies, organizational standards, and business priorities. Their monitoring priorities therefore depend on what they operate and where those systems run. Those priorities will not look the same for every organization ...

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Top-performing businesses prioritize data-driven decision making, enabling leaders to move from intuition and gut feel towards evidence-based judgment. But that judgment is only sound when the data underpinning decisions is accurate. With incident management, data accuracy is particularly important. Long-term revenue, customer trust, and operational stability depend on high-quality data that enables teams to quickly identify and address the root cause of major incidents. Against this backdrop, governance becomes a critical endeavor to ensure the right data drives the right action ...

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