Generative AI: The state of the market

Generative AI is gaining steam, with applications such as Chat GPT and Google Bard building major media buzz. But will the hype translate to enterprise investment and adoption?

To answer these questions and more, the IBM Institute for Business Value surveyed and interviewed C-suite executives about their plans to adopt generative AI, the benefits they expect, and the barriers holding them back.

Nearly 2 in 3 say they feel pressure from investors to accelerate their adoption of generative AI.

We found that investment in generative AI is expected to grow 4x over the next 2 to 3 years—but it remains a small fraction of total AI spend. Still, CEOs feel the need to act fast. While some stakeholders think companies should slow down, more want them to pick up the pace. 

What's holding organizations back? In a word: trust. Executives cite cybersecurity, provacy, and accuracy as the top barriers to implementing generative AI. As the landscape evolves, executives expect to invest at least 40% more in AI ethics over the next three years.

Executives expect to invest at least 40% more in AI ethics over the next three years.

Download the data story to see the returns executives expect from generative AI, which concerns are keeping leaders up at night—and how to assess whether your organization is ready to push forward.