Tuesday, March 19, 2024

32% Of Organizations Have Already Deployed Gen AI In Enterprise Applications And Other Key Findings From Recognize CIO Survey

Key Highlights

32% of organizations have already deployed Generative AI in enterprise applications; 31% have expressed talent gap as their major concern in the deployment of Generative AI

OpenAI’s GPT-4 emerges as the most widely adopted LLM (58%)

79% of organizations rely on contractors for cybersecurity, reflecting a strong outsourcing trend.

…findings from a US-based CIO survey for Indian IT vendors

Recognize, a technology investment platform that focuses exclusively on the tech services industry, has shared some interesting findings from its recent CIO survey. The Recognize CIO Survey series is a regular survey conducted with a panel of 250-500 CIOs in the United States. The data from this survey helps track spending intentions, changes in technology, product preferences, strategic priorities, and talent challenges.

Key Findings:

Increasing adoption of Generative AI across organizations:

Data from the survey on the adoption of Generative AI technologies such as ChatGPT, Bard, etc., reveals various approaches by organizations. A notable 32% have already deployed these technologies as an enterprise application or process, and 20% of organizations are individually experimenting with these technologies, indicating a bottom-up interest. There are also sizable initiatives, with 16% of organizations having large projects underway. 14% are in the prototyping stage for enterprise use, showing significant interest in exploring Generative AI capabilities.

Organizations reveal major concerns around deploying Generative AI:

The survey sheds light on major concerns that organizations have regarding the rapid deployment of Generative AI. The biggest concern is around security, cited by 60% of respondents, highlighting the dire need for robust security measures in AI systems. The next big concern for 37% of the respondents is around the complexity of such sophisticated technologies. This is followed by 31% of organizations expressing concern in sourcing talent, indicating a gap in skilled professionals in the field.  Equally, 30% express worries about hardware requirements and potential inaccuracies from AI models, 27% are concerned about the impact to jobs, reflecting workforce implications, and 22% are weary of a low return on investment.

GPT-4 by Open AI emerges as the predominant adopted LLM:

A majority of 58% of the organizations are using OpenAI’s GPT-4, showcasing its dominance in the field. About 21% of them have adopted OpenAI’s GPT-3.5 and over 5% of them have adopted Google AI’s PaLM2. This distribution underscores OpenAI's significant influence in the current landscape of large language models.

Rising adoption of LLM (Large Language Model) across organizations:

75% of organizations presently utilise Large Language Models (LLMs), indicating extensive adoption. However, 20% organizations are yet to implement this technology, and 5% are uncertain about their engagement with these advanced AI systems.

Majority of Organizations Utilize Managed Services (Contractors) for Cybersecurity Monitoring and Management

This survey reveals a significant reliance on managed services for cybersecurity among organizations, with 79% of organizations relying on contractors for monitoring and managing cybersecurity, which reflects a strong outsourcing trend due to the field's complexity. In contrast, 19% of them do not use managed services, indicating in-house handling. This data underscores the critical role of managed services in the cybersecurity landscape of modern organizations.

Increasing commitment to cloud technology:

The survey reveals a strong trend towards cloud migration among organizations. 42% are already in the midst of cloud migration projects and 35% have nearly completed their cloud migration efforts, indicating a considerable commitment to cloud. Meanwhile, 14% of respondents are in the early stages of their cloud migration journey. This data emphasizes the widespread adoption and significance of cloud technology in the current business landscape.

Percentage of Application Workload in Commercial Cloud:

The survey data shows 19% of organizations have 60% of their application workload in a commercial cloud, followed by 17% organizations having 70% of their workload in the cloud. Notable lower percentages like 50% and 30-40% reflect a cautious or balanced approach to cloud integration.

About Recognize

Recognize is a technology investment platform exclusively focused on the technology services industry. Tech services firms envision, build, configure, manage, and operate software and business processes to deliver digital outcomes for enterprises. The firm provides operational expertise, industry insights, and strategic capital to innovative companies in this sector. Recognize is led by industry veterans Frank D’Souza, Raj Mehta, Charles Phillips, and David Wasserman. To learn more, visit www.recognize.com.

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