Enterprise AI has become a necessity. Generative AI has gone from the fringes to the forefront, doubling its adoption rate across industries in 2024. A study by AI at Wharton and GBK Collective, involving over 800 decision-makers in U.S. enterprises, documents this shift in a report titled “Growing Up: Navigating Gen AI’s Early Years.”
This comprehensive research outlines AI’s role in transforming business functions and highlights adoption patterns, investment trends, and changing attitudes among leaders. Enterprises now see generative AI as integral to their operations, pushing them to make substantial financial and strategic commitments to this technology.
Why generative AI is now a business essential for modern enterprises
In 2024, generative AI saw an unprecedented transition from experimental use to essential business integration, with an adoption rate that more than doubled. This surge signifies AI’s new role as a necessary component in enterprise strategies, fostering a deeper commitment from organizations to adopt and scale these technologies.
AI at Wharton and GBK Collective’s study serves as a reflection of this change, analyzing insights from 800+ leaders to capture the full impact of AI across American businesses. Titled “Growing Up: Navigating Gen AI’s Early Years,” the report underscores how quickly enterprises have integrated generative AI into critical operations and departmental workflows, suggesting that AI’s growth trajectory is reshaping the business landscape.
What’s driving rapid growth across enterprises
Business leaders are increasingly incorporating AI into their day-to-day operations, with weekly AI usage among leaders rising from 37% in 2023 to an impressive 72% in 2024. This shift reflects a growing reliance on AI-driven tools for decision-making, operational efficiency, and strategic planning.
Additionally, 90% of executives now view AI as an enabler of employee skills, a notable increase from 80% in the previous year. Such a change indicates that organizations are increasingly using AI to complement human expertise rather than replace it.
Concerns about job displacement have also eased slightly, dropping from 75% to 72%, as enterprises better understand AI’s potential as a tool for improvement, rather than replacement.
58% of companies rated AI’s performance as “great,” pointing to rising satisfaction levels as AI continues to yield positive results.
AI investments are growing exponentially, with organizations reporting a 130% increase in spending compared to 2023. Currently, 40% of companies are allocating over $10 million to AI, a stark increase from the previous standard of $1-5 million.
Investments show the importance of AI to these organizations, driving innovation, efficiency, and competitiveness. Additionally, 72% of companies anticipate further spending on AI in 2025, reflecting their confidence in AI’s potential to deliver long-term value. Financial commitments signal that generative AI is a key priority for enterprises, setting a foundation for even more sophisticated and widespread implementations in the near future.
How perceptions and priorities are changing
Enterprises are increasingly viewing AI as a collaborative tool that supports human expertise rather than replacing it. Where AI was once an experiment on the periphery, it is now seen as a mainstay in corporate strategy, generating excitement among leaders who recognize its potential to increase productivity and support employees in decision-making.
A growing comfort level with AI stems from its proven ability to simplify tasks and augment business functions, letting leaders focus on more strategic objectives while using AI for support.
As businesses become more familiar with AI’s capabilities, they shift from skepticism to acceptance.
Good budgets focus on people over tech
When allocating AI budgets, organizations are prioritizing investments that go beyond technology acquisition. Only about a third of AI spending goes toward the technology itself, while the remainder focuses on critical areas that enhance AI’s value within the organization.
Funds are being allocated to training and upskilling existing staff, onboarding new employees who can effectively work with AI, and consulting services to optimize AI integration into business operations. It’s a shift that highlights a pragmatic approach to AI investments, where the technology itself is seen as increasingly commoditized.
With AI tools like ChatGPT widely available, enterprises recognize that differentiation lies in how well they can integrate AI into their processes rather than in the tools themselves. Organizations now face the challenge of customizing AI to suit their unique needs, without a “blueprint” to guide them, making consulting and tailored implementation a crucial part of their AI journey.
How smaller companies are winning in AI
Smaller and mid-sized companies, defined as those earning between $50 million – $250 million and $250 million – $2 billion respectively, are leading the AI adoption wave, often moving faster than their larger counterparts. These organizations, less encumbered by legacy systems and bureaucratic hurdles, are able to implement AI with fewer restrictions, allowing for greater experimentation.
When getting the most out of AI, smaller businesses can uncover cost efficiencies, boost productivity, and explore innovative business models, enhancing their competitive standing. Flexibility can help smaller firms compete with larger organizations in new ways, using AI-driven efficiencies and capabilities to bridge the gap and even create unique advantages.
Making AI work for you
In order to maximize AI’s value, companies are encouraged to take a proactive, strategic approach to integration. The study’s co-director, Stefano Puntoni, highlights the need for serious commitment and an experimental mindset to successfully incorporate AI into operations.
Companies that are willing to invest time and resources in understanding AI’s potential stand to gain the most value, not just from the technology itself but from the ways it can be customized and optimized for specific business goals. Through experimentation, training, and continuous learning, businesses can position themselves to capitalize on AI’s benefits and create a sustainable foundation for growth.
