Manufacturers Slow to Deploy Planned Generative AI Initiatives As Concerns Around Accuracy Spike
10 July 2024 - 3:15PM
UK Regulatory
Manufacturers Slow to Deploy Planned Generative AI Initiatives As
Concerns Around Accuracy Spike
Manufacturers have successfully deployed only
20% of planned AI initiatives according to the second annual Gen AI
survey commissioned by Lucidworks
- Less than 60% of manufacturers plan to increase AI spending in
2024 compared to 93% in 2023
- Despite a slower-than-anticipated rollout, nearly half of
manufacturers already report cost benefits from AI initiatives
- Only 1 in 4 companies across all industries have successfully
launched AI initiatives in the past 12 months
SAN FRANCISCO, July 10, 2024 (GLOBE NEWSWIRE) -- Lucidworks, a
leader in search and total AI solutions, today released new
manufacturing findings from its second annual Generative AI
Global Benchmark Study. The study gathered input from over
2,500 leaders involved in AI technology decision-making worldwide.
The report explores key areas of generative AI investment and
organizations' progress in adopting generative AI.
While initial excitement for AI was high, the actual
implementation of planned initiatives has been sluggish across most
industries. In 2023, more than 40% of manufacturing leaders had a
positive view of AI, with 93% planning to increase investments. In
2024, only 58% plan to increase their spending. 30% worry that
they’re falling behind their competition, with only one in five
successfully deployed initiatives. Despite slow deployment,
manufacturers reported above-average cost benefits (48%).
Across the board, concerns around security, response accuracy,
and costs have forced most businesses to slow down their planned
initiatives and be more strategic about the balance between cost
and benefit. Security worries have tripled, accuracy concerns have
grown fivefold, and transparency issues have quadrupled since 2023.
Manufacturers have some of the most concerns around response
accuracy (44%) and some of the least concerns around job
displacement (3%) compared to other industries.
The 2024 Generative AI Global Benchmark Study also
includes the following findings:
- Investment Slowdown:
Global AI spending plans are down sharply, with only 63% planning
increases (vs. 93% last year). USA-based organizations remain above
average with 69% planning to increase AI spend.
- Slow Progress: Delayed deployment and low
success rates are commonplace with only 25% of planned projects
fully implemented. This lag is stalling anticipated ROI, with 42%
of companies yet to see significant benefits from generative AI
initiatives.
- Spending Flattens: Across all organizations,
36% of leaders plan to keep spending flat, compared to only 6% in
last year’s survey.
- China’s Sharp Decline: Only 49% of Chinese
leaders plan to increase AI spending in 2024, a massive drop from
100% in 2023.
- Commercial LLMs Dominate: Nearly eight in 10
companies use commercial LLMs and 21% have opted for open source
only.
- Competitive
Concerns: A third of business leaders feel like they’re
falling behind competitors despite almost everyone struggling to
implement this new technology.
“While many manufacturers see the potential benefits of
generative AI, challenges such as response accuracy and cost are
causing them to take a more cautious approach. This is reflected in
spending plans, with significantly fewer planning to increase AI
investments compared to last year,” said Mike Sinoway, CEO,
Lucidworks. “However, above-average reported cost benefits in 2024
could make them more bullish in the coming year. B2B companies and
manufacturers have much to gain if they can balance cost and risk
to improve efficiency, enhance the buyer experience, and reduce
operational costs using generative AI.”
Download the complete 2024 Generative AI Global Benchmark
Study and accompanying manufacturing-focused findings today.
Learn more about Lucidworks at Lucidworks.com.
About Lucidworks
Lucidworks clients are more than 2.5x more likely to
successfully deploy generative AI initiatives than their peers. The
world's largest brands including Crate & Barrel, Lenovo, and
Red Hat rely on Lucidworks' suite of products to power commerce,
customer service, and workplace applications that delight customers
and empower employees. Contact us today to build your AI success
strategy.