New Research from Elastic Finds Conversational Search Could Yield Staggering Productivity Returns

Rhea-AI Summary

Elastic's research reveals the transformative potential of generative AI, with 99% of global IT decision-makers acknowledging its impact. Despite challenges like chaotic data estates and skills gaps, 88% plan increased investments in GenAI. Key findings show high enthusiasm for GenAI benefits like improved efficiency, customer experience, and decision-making, but adoption is hindered by security, regulation, and skills gap concerns. Organizations struggle with siloed data ecosystems, slow decision-making, and search capabilities. However, optimism remains for GenAI to address security and observability challenges.

Nearly half (44%) of global IT decision-makers believe search powered generative AI could save employees at least two days per week

SAN FRANCISCO--(BUSINESS WIRE)-- New research by Elastic (NYSE: ESTC), the company behind Elasticsearch®, found nearly all (99%) global IT decision makers, regardless of region or industry, recognize generative AI’s (GenAI) transformative potential to influence change within their organizations. However, early adoption continues to be slowed by chaotic data estates, search challenges, and fears around privacy and security, regulation, and internal skills gaps.

Despite these headwinds, the report - The Elastic Generative AI Report: One Year On, Identifying the Impact and Challenges of Early Generative AI Implementation Worldwide - found most IT decision makers (88%) are eyeing increased investments in GenAI in 2024 and beyond. This points to optimism that these technologies are poised to drive operational efficiencies and productivity, accelerate decision-making, improve customer engagement, and bolster security postures.

“In a little more than 12 months, the disruptive potential of GenAI has shifted from reverie to reality, capturing the imaginations and budgets of IT and data leaders,” said Matt Riley, GVP & General Manager of Search at Elastic. “While data may fuel this technology, search is the engine that powers its effectiveness. Unsurprisingly, businesses that adopt search-powered GenAI quickest - grounded by business context - will lead and uncover the insights needed to securely innovate, build more efficient businesses, and pioneer new customer experiences.”

“Generative AI is still an emerging technology, but it already promises to disrupt how organizations operate and engage with customers and employees,” said Jason Bloomberg, Managing Director of analyst firm Intellyx. “In particular, GenAI is transforming the data management, security, and search challenges many businesses continue to face. Thoughtful application of this new technology will help them better anticipate customer needs and differentiate themselves from their competition.”

Key Findings

There’s high enthusiasm for GenAI across regions and industries, but key concerns stifle operationalization strategies

• Across verticals, GenAI is poised to deliver tangible benefits for organizations
  • More than half of respondents (57%) anticipate it will improve resource (i.e., staff time, better costs) and operational efficiency and productivity, improve customer experience (50%), and lead to more accurate decision-making (48%)
• However, despite early interest and planned investment, internal and external roadblocks threaten to slow GenAI adoption
  • Nearly 9 of 10 organizations anticipate budgets for GenAI will increase over the next three years, despite nearly all respondents reporting adoption is being slowed, primarily by fears around the security and privacy of the technologies (40%), regulation issues (37%), and the skills gap to implement the technologies in house (36%)
  • While a skills gap may continue to slow GenAI adoption, 4 of 10 respondents believe it will eventually help upskill and educate employees

Siloed data ecosystems continue to expand in size and complexity, complicating security, visibility, and real-time analysis

• Most organizations continue to struggle to get relevant insights from their data, which leads to sluggish decision-making
  • Unsurprisingly, 3 of 4 (75%) respondents report the ability to view data across their entire environment is a key challenge for their organizations, while 7 of 10 (68%) report critical decisions are stalled by slow analysis of their organization’s data
• While search powered GenAI is recognized as a key to unlocking transformative insights, effective search capabilities remain stunted
  • Nearly all respondents (97%) believe a conversational search experience would make their organizations more productive, and nearly half (44%) believe their organizations could save an average of two days or more per week per employee
  • The majority of organizations (94%) face data search challenges driven by a struggle to use search results effectively (45%), the inability to cover multiple sources of information (44%), and the inability to obtain responses quickly enough (42%)

Despite evolving IT infrastructures and data estates, there’s optimism GenAI will illuminate security and observability blindspots

• IT security environments and threat landscapes have never been more complex, but there’s confidence GenAI will alleviate many challenges
  • Nearly all organizations (97%) face IT security challenges, from the ability to detect and respond to threats quickly to maintaining current and relevant security practices, but nearly all respondents anticipate GenAI will bolster security postures, such as improving automated threat detection systems (53%), generating training exercises (50%), and automating responses to common security problems (49%)
• Holistic observability remains a significant operational pain point, but GenAI offers hope
  • Nearly all organizations (95%) report observability challenges, from data silos to more complex applications, but nearly all respondents are confident GenAI would benefit their observability postures, specifically to enhance missing data handling (48%), improve data masking and privacy (43%), and to conduct rigorous and regular data quality assessments with synthetic data (43%)

The report was produced in conjunction with independent market research specialist Vanson Bourne, and solicited 3,200 IT decision makers and decision influencers across the U.S., Europe, and Asia-Pacific from more than a dozen sectors, including telecommunications, public service, retail, and financial services.

To uncover more insights, download the report and take the quiz to see where you are in your generative AI adoption journey.

About Elastic

Elastic (NYSE: ESTC), the leading search analytics company, securely harnesses search powered AI to enable everyone to find the answers they need in real-time using all their data, at scale. Elastic’s solutions for security, observability and search are built on the Elasticsearch platform, the development platform used by thousands of companies, including more than 50% of the Fortune 500. Learn more at elastic.co

View source version on businesswire.com: https://www.businesswire.com/news/home/20240326559979/en/

Alexia Russell

Elastic Global PR

PR-Team@elastic.co

Source: Elastic N.V.

FAQ

What is the ticker symbol for Elastic?

The ticker symbol for Elastic is 'ESTC'.

What percentage of global IT decision-makers believe GenAI could save employees at least two days per week?

Nearly half (44%) of global IT decision-makers believe GenAI could save employees at least two days per week.

What are some key concerns hindering GenAI adoption?

Key concerns hindering GenAI adoption include fears around security and privacy (40%), regulation issues (37%), and the skills gap to implement the technologies in house (36%).

What benefits do organizations anticipate from GenAI?

Organizations anticipate benefits like improved resource and operational efficiency, better customer experience, and more accurate decision-making from GenAI.

How many respondents believe a conversational search experience would make their organizations more productive?

Nearly all respondents (97%) believe a conversational search experience would make their organizations more productive.