What’s Needed for Organizations to Be Ready for a GenAI-driven Future?

A new study conducted by CDO Magazine with leading consultancy Guidehouse examines how organizations and executives across the public sector and commercial industries are embracing GenAI.

The State of GenAI Today survey findings illustrate the transformative potential of GenAI in reshaping industries, the critical need for readiness and strategic planning, and the importance of governance frameworks in harnessing GenAI's full benefits. The report details five priorities for organizations as they navigate the complex GenAI landscape and leverage its potential to drive innovation and competitive advantage.

“Generative AI offers the potential to radically transform industries, and as organizations prepare to invest in GenAI, strategically aligning their goals with GenAI capabilities will be crucial,” says Steve Wanamaker, Founder and Publisher of CDO Magazine. “Our aim is for these survey results to help data and IT leaders harness the potential of GenAI, gauge their organization’s readiness, and define a path forward.”

“Many organizations are excitedly implementing GenAI strategies and tools, while others are more cautiously weighing its challenges and risks, and assessing readiness to harness GenAI capabilities,” says Bob Audet, Partner at Guidehouse’s Data & AI solutions practice. “The journey ahead demands both technological readiness and a vision that comprehensively integrates GenAI into the fabric of organizational strategy and operations.”

The survey findings underscore the critical juncture at which organizations stand today as we face the coming technology revolution. Key insights and findings include:

• Large companies ($1B+ in revenue/budget) are extremely likely to invest in GenAI at 2-3 times the rate of smaller organizations: This uneven investment could result in adoption disparities that give large enterprises additional competitive advantages as the benefits and efficiencies of GenAI compound.

• Healthcare and insurance industries lead the way: Most healthcare (89%) and insurance (88%) respondents say their organization is likely to invest in GenAI in the next 12 months. The healthcare and insurance industries have emerged as GenAI front-runners, which could revolutionize patient care and risk assessment.

• GenAI as a competitive force: According to 52% of respondents, GenAI will have a high or substantial impact on competitiveness; 35% anticipate a moderate impact. Respondents expect GenAI to enhance productivity, process automation, and labor efficiency, suggesting a transformative impact on competitiveness across sectors.

• Governance and management challenges: Many (72%) of respondents say GenAI applications are not incorporated into existing data governance and management structures. Organizations of all sizes anticipate a struggle to integrate GenAI into existing governance and process management structures.

• Organizations aren’t yet GenAI-ready: Despite the potential, 76% of respondents say their organization is not fully equipped to harness GenAI. Obstacles include governance, architecture, training needs, privacy concerns, and a lack of skilled personnel.

The report shows that organizations that embrace GenAI take meaningful steps toward adoption through informed strategies, ethical practices, a skilled workforce, and judicious investments.

For more information, download your FREE copy of The State of GenAI Today research report.

About Guidehouse:

Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation.

Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has more than 16,000 professionals in over 55 locations globally. Guidehouse is led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies.