A recent survey revealed that nearly 9 in 10 companies (87 percent) have implemented or are piloting generative AI (GenAI) technology, with businesses significantly increasing their spending and commitment to AI.
Bain & Co.’s latest survey indicated a rapid increase in business spending and commitments to GenAI. More than 60 percent of businesses surveyed have placed it among their top three priorities for this year and next, with 87 percent ranking it among their top five priorities for the next three to four years. On average, companies are budgeting approximately US$5 million annually for GenAI activities and technology infrastructure. This figure rises to US$50 million per year for 20 percent of the largest companies, reflecting substantial investment in AI implementation.
The survey, conducted among senior executives at 200 companies, shows a significant scaling of teams working on AI technology. Companies typically have around 100 employees engaging with AI in some capacity, while large companies have as many as 240 team members involved.
Executives focus on using AI to boost revenues and enhance efficiency and productivity, with 68 percent of companies citing these as their top business goals from AI capabilities. However, the survey also revealed that only about 36 percent of executives believe their organization has a strong, well-defined vision for AI deployments, with a sequenced roadmap and clear value expectations. Additionally, 21 percent of organizations have ideas for AI deployment but have not yet made coordinated efforts.
Despite these challenges, generative AI meets or exceeds expectations in 75 percent of cases. About 80 percent of respondents noted that prototyping for AI use is faster than with earlier AI and machine learning technologies. However, where AI deployments have fallen short, the issues often involve poor output quality or the technology not meeting performance needs. User adoption and off-the-shelf tools not delivering expected value are common concerns, although these issues are less frequent in areas like sales, marketing, customer service, and customer onboarding.
Gene Rapoport, a partner at Bain & Company and leader of AI initiatives for Bain’s Private Equity practice, commented on the adoption of generative AI. "The scale and pace of generative AI adoption across the business landscape is significant. It indicates this technology having a substantial impact for companies across sectors as it continues to develop – and as deployments continue to increase," Rapoport said.
"It's important for CEOs and executive committees to take clear ownership of AI implementation in their organizations and ensure a well-defined vision for its use. Companies that do this are likely to see the best results and competitive advantages,” he added.
Sanjin Bicanic, a partner at Bain & Company and member of Bain’s Advanced Analytics Group, added, "Many software companies are rapidly adding AI features to their products, but our research shows these solutions are not yet fully featured enough to create value for enterprises. This gap in perceived value, combined with the availability of frontier models as APIs, is why many companies are choosing to build to capture value quickly. As solutions improve, we expect to see more buying, but the landscape is shifting rapidly, and it's unclear where building might be the best long-term solution."
As the adoption of generative AI increases, Bain also identified four evolving themes in how companies approach the technology: focusing on delivering value, identifying promising use cases, recognizing differences in readiness between tech and non-tech companies, and weighing the decision to buy or build AI solutions.