Generative artificial intelligence is revolutionising the business landscape, defining several benefits that Generative AI can bring to companies. Over the past year, AI adoption has increased significantly, from 50% to 72% according to McKinsey & Company. This global trend reflects a growing interest and confidence in the advanced capabilities of generative AI.
Benefits of Generative AI for Business
1. Innovation in Products and Services
Generative AI significantly accelerates the innovation process. Using advanced algorithms, this technology can create optimised designs that surpass traditional human capabilities. For example, in the automotive industry, AI has been used to design lighter and stronger components, reducing costs and improving performance. In the pharmaceutical sector, it generates new molecules to develop more effective and personalised medicines. According to McKinsey, 65% of companies are regularly using generative AI in at least one business function, resulting in a 30% cost reduction and a 20% increase in revenue in business units that implement this technology.
2. Improvement in Operational Efficiency
Generative AI improves operational efficiency by automating repetitive tasks and analysing large volumes of data. This optimises internal processes, reduces errors, and saves time and resources. For example, in supply chain management, AI can predict and mitigate potential problems, improving process fluidity and efficiency. Logistics companies have reported significant improvements in demand forecasting and route planning thanks to this technology. AI adoption in operational functions has increased by 35% in the past year, allowing companies to reduce operational errors by 40% and improve overall efficiency by 25%.
3. Personalisation of the Customer Experience
The ability of generative AI to analyse customer data and behaviours allows for highly personalised experiences. By generating recommendations tailored to individual preferences, companies can increase customer satisfaction and loyalty. In e-commerce, this personalisation has led to a notable increase in conversion rates and customer lifetime value. According to the same report, personalisation through generative AI has increased conversion rates by 15% and customer lifetime value by 25%.
4. New Business Opportunities
Generative AI opens the door to new business opportunities by enabling the creation of unique content and solutions. In the entertainment industry, for example, it can produce scripts, music, and visual arts, offering new forms of content and experiences. In education, it creates personalised educational materials that cater to the specific needs of each student. According to McKinsey’s study, 40% of companies in creative industries have started using generative AI to develop new products and services, resulting in a 30% increase in new business opportunities.
5. Optimisation of Decision Making
Generative AI can provide valuable insights for decision making by analysing vast amounts of data and learning from it. This allows business leaders to make more informed and strategic decisions. In the financial sector, for example, it is used for risk management and fraud detection, protecting the assets of organisations. AI adoption for decision making has improved accuracy by 45% and reduced analysis time by 50%, according to McKinsey’s data.
Reliability: The Key to Successful AI Deployment
Despite its numerous benefits, the successful deployment of generative AI largely depends on reliability. Transparency in AI processes, ethics in its application, and responsibility in its use are fundamental to gaining and maintaining user and customer trust.
A report by the World Economic Forum highlights that while AI has the potential to generate significant value, a lack of trust in the technology remains a major obstacle. Concerns about privacy, security, and the ethical use of data must be proactively addressed by organisations.
The Crucial Role of CIOs in Harnessing the Benefits of Generative AI for Business
CIOs must ensure that generative AI solutions are transparent, ethical, and secure. By doing so, they will not only drive innovation and efficiency in their companies but also strengthen the reliability perceived by customers and employees in this emerging technology. For more information on how to apply generative AI in development teams, you can read this article on the Quantion blog.
Generative AI has the potential to significantly transform the business world, offering innovations, efficiency, and personalisation at an unprecedented level. To fully reap these benefits, companies must prioritise reliability and ethics in the deployment of this technology. Only then can they ensure responsible and effective use of generative AI, building a more innovative and equitable future for all.
