GenAI’s potential for ROI is strong but not fully realized

Generative AI is shaping up to be a major force in today’s business world, even if the full scale of its impact remains on the horizon. We’re seeing companies push into AI-driven solutions for automation, operational efficiency, and better customer engagement. The power of AI here is already showing up in tangible improvements for businesses across sectors.

Giants like Amazon and Microsoft are placing massive bets on generative AI technology, investing billions because they see the big picture. They know that the AI market is forecasted to reach $1.3 trillion by 2032, and they’re not sitting on the sidelines.

Even with all this enthusiasm, many companies still wrestle with translating generative AI’s value directly into dollars and cents. For 49% of companies, figuring out AI’s immediate business impact is a sticking point, according to Gartner.

The numbers say it all—these organizations are hesitant, not because they doubt AI’s power but because quantifying its value isn’t always straightforward.

It’s no surprise some businesses want concrete returns on the horizon before jumping in headfirst. It’s not a question of if AI can drive profit—it’s about understanding how and when it will.

Practical applications of GenAI show tangible benefits

Across industries, we’re seeing real, measurable gains from applying generative AI in specific functions. Look at Walmart, Alaska Airlines, and SnapLogic. Each has taken a practical approach to leveraging AI, whether it’s speeding up data handling, automating processes, or refining customer support.

  • Walmart, for instance, ramped up productivity by 100 times in supply chain data tasks using AI—a huge leap.
  • SnapLogic’s finance department used AI to overhaul revenue calculations, slashing manual tasks by 90% and speeding up monthly close times by 30%

The financial payoff is undeniable. For SnapLogic, applying generative AI to financial data recovery led to around 2% in additional revenue—a meaningful boost that would otherwise have slipped through the cracks. These aren’t small wins, they’re proof of what AI can do when applied with focus and intent.

Successful GenAI deployment need solid data management and IT Infrastructure

For AI to work effectively, you need a strong foundation—starting with your data. Without streamlined, centralized data, it’s like trying to run a high-performance engine without oil. Generative AI feeds on information, and if your data is scattered across outdated or siloed systems, AI becomes more costly and challenging to integrate.

Companies should be setting up a flexible, connected data architecture to streamline data access across systems, cut costs, and can scale up their AI solutions more smoothly.

Modern IT infrastructure also plays a huge role here. Technical debt—outdated systems and the complex workarounds they create—limits progress and can lead to costly outages. We’ve seen what happens when a legacy system buckles under pressure. IT teams are already spending over 16 hours a week just patching up legacy systems. No wonder 57% of organizations plan to update half their outdated systems to better support AI.

According to a 2024 survey of IT leaders, 48% of companies have doubled down on data-driven strategies in just one year. The stage is being set for a truly integrated AI vision.

For GenAI to drive profits, companies must prepare strategically

The path to profit with generative AI isn’t always immediate, but the success stories are already setting a clear direction. When companies focus on foundational improvements, from robust data systems to modern infrastructure, they’re more likely to realize substantial gains from AI. Streamlining data and updating IT may seem like background tasks, but they’re the real launchpad for long-term AI success.

Are you prepared to leverage the full potential of generative AI, or will you let competitors capture that advantage? Leaders are rethinking their entire infrastructure, how data flows, and how your brand positions itself in a world where AI drives efficiency and innovation. Are you equipped, or even prepared to make the leap, set the foundation, and shape your market future, or will you risk being left behind?

Tim Boesen

November 13, 2024

3 Min