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Enterprise Spending on GenAI Expected to Rise 50% in 2025, as Focus Shifts From Efficiency to Expertise

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Information Services Group (ISG) projects a 50% increase in enterprise spending on generative AI (GenAI) in 2025, as companies shift focus from efficiency to augmenting human expertise. The ISG State of Applied Generative AI Market report reveals that:

1. GenAI is primarily used for customer-facing work.
2. 28% of companies apply GenAI to customer service chatbots.
3. 43% of enterprises exploring GenAI are in the live pilot or trial stage.
4. Enterprises expect significant ROI increases in 2025 compared to 2024.

While current GenAI applications focus on efficiency, future uses will include compliance, forecasting, market research, and software development. However, the 'human in the loop' approach currently limits scalability and ROI potential.

Information Services Group (ISG) prevede un aumento del 50% della spesa delle imprese per l'IA generativa (GenAI) nel 2025, mentre le aziende spostano l'attenzione dall'efficienza all'incremento dell'expertise umana. Il rapporto ISG State of Applied Generative AI Market rivela che:

1. La GenAI è utilizzata principalmente per lavoro a contatto con i clienti.
2. Il 28% delle aziende applica GenAI ai chatbot per il servizio clienti.
3. Il 43% delle imprese che esplorano GenAI sono in fase di pilota o prova attiva.
4. Le imprese si aspettano significativi aumenti del ROI nel 2025 rispetto al 2024.

Sebbene le attuali applicazioni di GenAI si concentrino sull'efficienza, i futuri utilizzi includeranno conformità, previsioni, ricerche di mercato e sviluppo software. Tuttavia, l'approccio 'human in the loop' limita attualmente la scalabilità e il potenziale ROI.

Information Services Group (ISG) proyecta un incremento del 50% en el gasto empresarial en IA generativa (GenAI) para 2025, a medida que las empresas cambian su enfoque de la eficiencia a la ampliación de la experiencia humana. El informe de ISG sobre el Estado del Mercado de IA Generativa Aplicada revela que:

1. GenAI se utiliza principalmente para el trabajo orientado al cliente.
2. El 28% de las empresas aplican GenAI a chatbots de servicio al cliente.
3. El 43% de las empresas que exploran GenAI se encuentran en la fase de piloto o prueba.
4. Se espera que las empresas experimenten un aumento significativo en el ROI en 2025 en comparación con 2024.

Si bien las aplicaciones actuales de GenAI se centran en la eficiencia, los futuros usos incluirán cumplimiento, previsión, investigación de mercado y desarrollo de software. Sin embargo, el enfoque 'human in the loop' actualmente limita la escalabilidad y el potencial de ROI.

Information Services Group (ISG)는 2025년 기업의 생성형 AI(GenAI) 지출이 50% 증가할 것으로 예상하고 있으며, 기업들이 효율성에서 인간 전문성 증대로 초점을 이동하고 있습니다. ISG의 적용된 생성형 AI 시장 보고서에 따르면:

1. GenAI는 주로 고객 대면 작업에 사용됩니다.
2. 28%의 기업이 고객 서비스 챗봇에 GenAI를 적용합니다.
3. GenAI를 탐색하는 기업의 43%가 실제 파일럿 또는 시험 단계에 있습니다.
4. 기업은 2024년 대비 2025년에 상당한 ROI 증가를 기대하고 있습니다.

현재 GenAI 애플리케이션은 효율성에 중점을 두고 있지만, 미래 사용은 규정 준수, 예측, 시장 조사 및 소프트웨어 개발을 포함할 것입니다. 그러나 '인간 개입' 접근법은 현재 확장성과 ROI 잠재력을 제한하고 있습니다.

Information Services Group (ISG) prévoit une augmentation de 50% des dépenses des entreprises en IA générative (GenAI) d'ici 2025, alors que les entreprises déplacent leur attention de l'efficacité vers l'enrichissement de l'expertise humaine. Le rapport ISG sur l'état du marché de l'IA générative appliquée révèle que :

1. GenAI est principalement utilisée pour le travail en contact avec les clients.
2. 28% des entreprises utilisent GenAI pour des chatbots de service client.
3. 43% des entreprises explorant GenAI sont en phase pilote ou d'essai.
4. Les entreprises s'attendent à des augmentations significatives du ROI en 2025 par rapport à 2024.

Alors que les applications actuelles de GenAI se concentrent sur l'efficacité, les utilisations futures incluront la conformité, les prévisions, les études de marché et le développement de logiciels. Cependant, l'approche 'humain dans la boucle' limite actuellement la scalabilité et le potentiel de ROI.

Information Services Group (ISG) prognostiziert einen 50%igen Anstieg der Unternehmensausgaben für generative KI (GenAI) im Jahr 2025, da Unternehmen ihren Fokus von Effizienz auf die Erweiterung menschlicher Expertise verlagern. Der ISG-Bericht zum Stand des Marktes für angewandte generative KI zeigt, dass:

1. GenAI hauptsächlich für kundenorientierte Aufgaben verwendet wird.
2. 28% der Unternehmen GenAI für Kundenservice-Chatbots einsetzen.
3. 43% der Unternehmen, die GenAI erforschen, sich in der Pilot- oder Testphase befinden.
4. Unternehmen signifikante ROI-Steigerungen für 2025 im Vergleich zu 2024 erwarten.

Während die aktuellen GenAI-Anwendungen auf Effizienz abzielen, werden zukünftige Anwendungen Compliance, Prognosen, Marktforschung und Softwareentwicklung umfassen. Der 'Human-in-the-Loop'-Ansatz schränkt jedoch derzeit die Skalierbarkeit und das ROI-Potenzial ein.

Positive
  • Projected 50% increase in enterprise GenAI spending for 2025
  • 28% of companies applying GenAI to customer service chatbots
  • 43% of enterprises in live pilot or trial stage for GenAI
  • Expected significant ROI increases across various areas in 2025
Negative
  • 'Human in the loop' approach limiting scalability and ROI potential of GenAI
  • Current size of GenAI efforts often marginal despite promising pilot results

Insights

The projected 50% increase in enterprise GenAI spending for 2025 signals a significant shift in corporate strategy. This surge is driven by a transition from efficiency-focused applications to those augmenting human expertise. Key areas like compliance, forecasting and software development are set to benefit.

Current GenAI applications are predominantly in customer-facing roles, with 28% of companies using it for chatbots and 21% for business process workflow management. The focus on "human-in-the-loop" deployment indicates a cautious approach, prioritizing quality control over scalability.

The expected ROI timeline is notable, with a dramatic increase in anticipated returns from 2024 to 2025 across various metrics. This suggests companies are laying groundwork now for significant future gains, but also highlights the current experimental nature of many GenAI initiatives.

The ISG report reveals a maturing GenAI market, with 43% of enterprises in live pilot or trial stages and 15% fully in production. This distribution indicates we're at an inflection point, with many companies poised to scale up their GenAI initiatives in the near future.

The shift from efficiency to expertise augmentation is a important trend. It suggests that as companies become more comfortable with GenAI, they're exploring more sophisticated applications that could lead to competitive advantages in areas like market research and supply chain planning.

However, the cautious approach to scaling and the emphasis on human oversight indicate that while the potential of GenAI is recognized, concerns about risks and liability are still significant barriers to full-scale adoption. This tension between potential and caution will likely shape the GenAI market landscape in the coming years.

The projected 50% increase in GenAI spending for 2025 is a strong indicator of the technology's perceived value. However, investors should note that this spending surge is based on expected future returns, not current realized benefits. The report's ROI projections show a significant jump from 2024 to 2025, suggesting a lag between investment and payoff.

For Information Services Group (ISG), this trend could be positive as demand for their advisory services may increase. Companies navigating the complex GenAI landscape will likely seek expert guidance, potentially boosting ISG's revenue. However, the cautious approach to GenAI adoption might temper short-term growth.

Investors should monitor the pace of transition from pilot projects to full-scale deployments, as this will be important for realizing the projected ROI. The current focus on human-in-the-loop applications may limit scalability and immediate returns, but it also reduces risk exposure in this nascent field.

Enterprises expect a significant share of ROI on GenAI initiatives to come in 2025

FRISCO, Texas--(BUSINESS WIRE)-- A new research report from Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, projects enterprise spending on generative AI (GenAI) will rise by 50 percent in the coming year, as companies shift their focus from efficiency to augmenting human expertise.

ISG will present the findings of its ISG State of Applied Generative AI Market report here today at the 2024 ISG Sourcing Industry Conference (SIC), the industry’s premier annual event for service and technology providers. The second annual report details GenAI trends, use cases, solutions and challenges, and offers data-driven insights and a roadmap for adopting GenAI at scale.

While GenAI is being tested and used in many business domains, the most well-funded use cases are focused on driving value for customer-facing work. The study shows efficiency, in the form of saving time and driving faster resolutions, is the primary enterprise motivation for implementing GenAI, followed by business growth, cost savings, customer service and innovation.

To achieve those efficiencies, 28 percent of companies say they are applying GenAI to customer service chatbots, with other top uses being business process workflow management (21 percent), customer service support (19 percent) and contact center management and monitoring (15 percent).

“Enterprises are currently using GenAI to make their processes and workflows faster,” said Steve Hall, chief AI officer, ISG. “In 2025, users will increasingly look to GenAI to augment human expertise, drawing on its immense ability to mine data for information they can use in functions including compliance, forecasting, market research, supply chain planning and software development.”

The study predicts enterprise spending on GenAI initiatives will increase by 50 percent in 2025, as companies expect to achieve a greater share of their return on investment (ROI) in the technology in the coming year. For instance, 17 percent of organizations expect to capture efficiency ROI in 2024, while more than three times as many – 54 percent – expect efficiency ROI in 2025. Similarly, 18 percent expect customer service ROI in 2024, rising to 58 percent in 2025. The research results showed similar jumps in expected ROI for innovation, cost savings and business growth.

The biggest portion of enterprises that are exploring GenAI (43 percent) are currently in the live pilot or trial stage. Eight percent of enterprises are still evaluating tools and providers, 7 percent are in the testing phase, 27 percent are moving towards full production and 15 percent are fully in production.

“Enterprises want significant, large-scale wins from GenAI rather than numerous minor victories. Despite promising results from pilot projects, the size of these efforts is often marginal,” Hall said. “AI tools are currently deployed with a ‘human in the loop’ to manage and validate output before it is delivered to customers. This is an important quality control measure, but it limits the ability of enterprises to scale GenAI and realize meaningful return on investment.”

While the ability to operate GenAI without the constraints of humans in the loop would open the door to returns that scale in a non-linear way and to investments in applications that focus on growth and new products, Hall said enterprises are taking a safe, liability-limiting approach to GenAI for now.

“We expect enterprises will continue to diversify GenAI usage across human-in-the-loop use cases and embrace AI-driven services that incorporate efficiency improvements,” Hall said. “Over the longer term, enterprises will need to make further technical progress and better understand the associated risks before they begin trying use cases with greater scale and ROI.”

Additional information on the ISG State of Applied Generative AI Market report is available on the ISG website.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

Press:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What is the projected increase in enterprise spending on GenAI for 2025 according to ISG?

According to the ISG report, enterprise spending on generative AI (GenAI) is projected to rise by 50% in 2025.

What are the primary enterprise motivations for implementing GenAI?

The primary motivations for implementing GenAI are efficiency (saving time and driving faster resolutions), followed by business growth, cost savings, customer service, and innovation.

What percentage of enterprises exploring GenAI are in the live pilot or trial stage?

43% of enterprises exploring GenAI are currently in the live pilot or trial stage.

How does ISG (III) expect the focus of GenAI usage to shift in 2025?

ISG expects the focus of GenAI usage to shift from efficiency to augmenting human expertise in areas such as compliance, forecasting, market research, supply chain planning, and software development.

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