1、An exclusive KPMG survey shows how top leaders are approaching this transformative technologyGenerative AI:From buzz to business 1Generative AI:From buzz to business value010203040506 2023 KPMG LLP,a Delaware limited liability partnership and a member firm of the KPMG global organization of independ
2、ent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Overnight,generative artificial intelligence(AI)has become a global sensation.Predictions of its potential impact on society,employment,politics,culture,and business fill th
3、e media and the internet.Business leaders are intrigued by the possibilities and are convinced that generative AI is truly a game-changer.KPMG launched its 2023 KPMG Generative AI Survey in March to look beyond the hype and understand how enterprises can make progress toward real,meaningful generati
4、ve AI results.The chief finding:Across industries and functions,more than three-quarters of executives(77 percent)see generative AI as by far the most impactful emerging technology they will use,and 71 percent plan to implement their first generative AI solution within two years.The possibilities fo
5、r using generative AI to transform how enterprises create content,engage users,develop software,and analyze data appear limitless.But,as with many emerging technologies,the path from buzz to business value is not simple or straightforward.Generative AI is still in its infancy and evolving rapidly.Be
6、fore executives invest in broad adoption,they have many unanswered questions about security,reliability,impact on jobs,and potential value.Executives in our survey cite lack of talent,cost issues,and unclear applications as top barriers to implementation.This report is based on survey data from 300
7、executives from across industries and geographies,as well as the insights of KPMG advisers in artificial intelligence,technology enablement,strategy,and risk management.The bottom-line assessment:Harnessing the transformative power of generative AI will require a balance of speedfirst-mover advantag
8、e could be powerfulwith thoughtful planning and careful risk mitigation.We discuss the why,where,when,and how of generative AI adoption,and offer practical insights for responsibly integrating generative AI solutions into individual organizations.Our goal is to help guide the critical dialogue takin
9、g place in C-suites about how to use generative AI to empower employees,work smarter,and compete better.IntroductionHarnessing the transformative power of generative AI will require a balance of speed with thoughtful planning and careful risk mitigation.01012020304050601Survey highlightsof responden
10、ts expect generative AI to have the largest impact on their businesses out of all emerging technologies.77%think generative AI implementation introduces moderate to high-risk concerns.92%are still at the initial stages of evaluating risk and risk-mitigation strategies for generative AI.47%believe ge
11、nerative AI will increase workforce productivity.73%will implement their first generative AI solution within the next two years.71%Top risk focus areas:Cybersecurity and data privacyTop barriers to implementation:Lack of skilled talent,cost/lack of investment,and lack of clear business case Top func
12、tional areas being explored:IT/tech and operations64%believe generative AI will help their business gain a competitive advantage over competitors.Opportunities:Challenges:Generative AI:From buzz to business value 2023 KPMG LLP,a Delaware limited liability partnership and a member firm of the KPMG gl
13、obal organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.0102030405063Generative AI:From buzz to business value 2023 KPMG LLP,a Delaware limited liability partnership and a member firm of the KPMG glob
14、al organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Generative AI overviewWhats the buzz?An evolution of AI algorithms,especially deep learning technologies,generative AI models come out of the box
15、having learned how to use the foundations of human communicationlanguage,art,music,programming code,etc.to make new content similar to that of humans.Aptly also known as“foundational models,”generative AI can be scaled and deployed across institutions far faster and with less cost than human-only pr
16、ocesses.With the potential to be used across a variety of business use cases to save time,money,and effort,new applications of generative AI are being researched,developed,and adopted at an astonishing pace.Generative AI technology attracted more than$1.37 billion venture capital dollars in 2022more
17、 than was invested in the previous five years combined.1 Robust growth is expected to continue as big tech companies like Microsoft,Alphabet,and Amazon,as well as newer generative AI startups like OpenAI,Synthesia,and Jasper AI continue to fund new innovation and push the envelope.Exhibit 2:Generati
18、ve AI market size 2022-2032Exhibit 1:Generative AI market share by region(2022)41%NorthAmerica26%Europe22%AsiaPacific8%Latin America3%Middle East and Africa$10.8BSources:Limited availability of updated report,hence an estimation for 2022 as well was included,though the year has passed;Precedence Res
19、earch;Grand View Research;Quidgest quoted Gartner numbers0210.82022202320242025202620272028202920302031203213.717.422.128.135.745.357.673.292.9118.1CAGR+27%Market size(US$B)1 Source:Marina Tempkin,“VCs try to parse through the noise of generative AI,”Pitchbook,December 23,20220102030405064Generative
20、 AI:From buzz to business value 2023 KPMG LLP,a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.What enterprise leaders a
21、re thinking about generative AITruly transformative:Perception and outlookGenerative AI stands apart from other recent innovations for its massive leap in ability and its potential breadth of impact across any industry and business function.For the first time in history,we have a technology that can
22、 directly augment humans in knowledge creation.Where other technologies are indirect enablers of knowledge work,generative AI has enabled the development of a true smart assistant that inches closer to human cognition and reasoning.And where recent technological advancements like blockchain,Web3,and
23、 quantum computing affected pockets of an industry or specific business functions,generative AI has applications across the end-to-end enterprise.Business leaders are highly interested in the capabilities and opportunities generative AI can unleash and believe it has the potential to reshape how the
24、y interact with customers,run their workplaces,and grow their revenue.Regardless of sector or function,77 percent rank generative AI as the emerging technology that will have the biggest impact on the business over the next 3 to 5 years,ahead of other trending technological capabilities such as adva
25、nced robotics,quantum computing,augmented reality/virtual reality(AR/VR),5G,and blockchain.Sixty-four percent of respondents expect the impact of generative AI on their organization in that timeframe to be medium.Exhibit 3:77%of leaders rank generative AI as the most impactful technologyGenerative A
26、IAdvanced roboticsQuantum computingAugmented reality/virtual reality5GBlockchainMetaverse3D printingBrain-computerinterfaceNano technologyNFT/cryptocurrency77%39%31%31%30%29%19%17%11%9%6%Source:Generative AI survey,March 2023030102030405065Generative AI:From buzz to business value 2023 KPMG LLP,a De
27、laware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Exhibit 4:Executives see generative AI more as opportunity than threatThe t
28、op drivers influencing enterprise need for generative AI are all major,potentially disruptive ones:technological factors,changing customer demands and experiences,and market competition.Our survey shows that corporate leaders perceive generative AI as a capability that could give companies an edge i
29、n these crucial strategic and operational areas.According to our research,more than 60 percent of respondents view generative AI as an opportunity to drive greater efficiencies,grow market share and revenue,and gain a competitive edge.7%62%18%64%Generative AI represents a significant opportunity for
30、 our company to grow in terms of revenue/market shareGenerative AI represents a significant opportunity for our company to drive better efficienciesGenerative AI represents a significant threat to our companys position in the marketGenerative AI will significantly help our business gain a competitiv
31、e advantage over our competitors31%2%46%52%20%62%4%32%Low agreement Medium agreementHigh agreementNotes:Sum might not add up to 100%due to rounding off Sources:Generative AI survey,March 20230102030405066Generative AI:From buzz to business value 2023 KPMG LLP,a Delaware limited liability partnership
32、 and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Dynamic uses:Top applications and adoption timelinesTransforming business processes using generative AI precurs
33、ors like machine learning and automation requires breaking them down into their individual component parts and applying strategic thinking around what components to accelerate or optimize.As such,they mostly impact business processes with point solution approaches designed to solve a single problem.
34、Generative AI changes the game.Processes do not need to be broken down because generative AI tools can apply the large variety of human knowledge,experiences,and common sense embedded into their models to fill the gaps.This creates immense opportunity to apply and scale the technology across real-wo
35、rld,enterprise-wide business processes.Businesses recognize generative AIs potential.Generative AI technology is in the midst of a meteoric rise and is now reaching an inflection point.The market has matured to the point that large companies in basically every industry can no longer ignore it and ar
36、e now spurring into action.While only 9 percent have already adopted generative AI,a large majority of enterprises(71 percent)plan to implement their first generative AI solution within 2 years or less.Executives expect the impact of generative AI to be highest in enterprise-wide areas:driving innov
37、ation,customer success,technology investment,and sales and marketing.IT/tech and operations are the top two functional areas respondents are currently exploring to implement generative AI in their businesses.These are the same areas respondents say they expect the greatest transformational impact fr
38、om the technology.When asked which application areas will be most relevant at their companies,automating routine tasks(31 percent)and language generation(24 percent)top the list.While prioritization varies by sector and function,overall value potential for applying generative AI seems to be highest
39、in areas where bots can handle routine tasks,freeing up humans to focus on skill-driven activities.For example,chatbots and virtual assistants can handle routine IT help desk tasks and inquiries,using text created automatically,while trained IT professionals help users solve more complex technical p
40、roblems.Exhibit 6:Top priority functions for adoption are IT/Tech and operations56%IT/TechOperationsMarketing and salesCustomerProductdevelopment/R&DFinance andaccountingHRRisk and legal42%40%19%16%14%56%40%Top priority12%Within thenext sixmonths26%Within the next year33%Within thenext twoyears12%Wi
41、thin thenext five years7%No specifictimeframe in mind9%We have already implemented at least oneGenerative AI solutionExhibit 5:71%plan to implement their first generative AI solution within two yearsNotes:Sum will not add up to 100%due to rounding Sources:Generative AI survey,March 2023Notes:Sum wil
42、l not add up to 100%as it is a multi-select question Sources:Generative AI survey,March 20230102030405067Exhibit 7.Expectations for generative AI applications,by sector and functionClick an icon to reveal data 2023 KPMG LLP,a Delaware limited liability partnership and a member firm of the KPMG globa
43、l organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Generative AI:From buzz to business valueTechnology,media,and telecommunicationsFinancial servicesEnergy and natural resourcesRisk and legalCustome
44、r supportMarketing and salesResearch and designOperationsFinance and administrationHuman resourcesIT/technologyConsumer and retailHealthcare and life sciencesIndustrial manufacturing0102030405068Generative AI:From buzz to business value 2023 KPMG LLP,a Delaware limited liability partnership and a me
45、mber firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Not ready for prime time:Implementation challengesRespondents name a diverse list of barriers to implementing AI,led by
46、lack of skilled talent to develop and implement,cost/lack of investment,lack of clear business case,lack of clarity on specific ways to implement,and lack of leadership understanding and/or strategy.And for all the excitement around generative AI opportunities,the majority of business leaders do not
47、 feel ready to adopt the technology at scale or seize its full potential.Still trying to grasp the full impacts of generative AI on their systems,operations,and people,69 percent anticipate spending the next 6 to 12 months focused on increasing understanding of the objectives and strategies for gene
48、rative AI adoptiona top priority.Enterprises clearly lack the right skills to implement generative AI.Only a miniscule percent of respondents(1 percent)say they already have the skills necessary in-house.The rest plan to hire/acquire new talent (24 percent),train existing talent(12 percent),or do bo
49、th(63 percent).Companies also often find it difficult to get the value they want from emerging technologies when they take a siloed approach.Yet 68 percent of respondents have not appointed a central person or team to organize their response to the emergence of generative AI.For the time being,the I
50、T function is leading the charge.Exhibit 8:Lack of skills,funds,and clear business case are the biggest barriers to adoptionLack of skilled talent to develop andimplementCost/lack of investmentLack of clear business caseLack of clarity on specific ways toimplementLack of leadership understandingand/