In the contemporary and rapidly evolving business environment, every company is striving to attain a competitive advantage through the promotion of innovation. However, recent data presents a concerning reality, indicating that despite considerable efforts, there has been minimal progress in the realm of innovation. Could the solution be found in the incorporation of generative AI, or is it simply another expensive technology that will yield little to no results?
A recently published report by the Boston Consulting Group (BCG) illuminates the current state of innovation within companies. A mere eight percent of businesses have fully integrated generative AI at scale, while over half are still in the experimental phase with the technology. The report indicates a lack of preparedness in terms of innovation strategy, with only 12% of companies establishing a strong connection between business strategy and innovation strategy. This has given rise to what BCG describes as “zombie innovation systems” – processes that are merely going through the motions without genuine innovation.
Despite the current low adoption rate, there is mounting excitement surrounding the potential of generative AI in propelling innovation in the near future. According to the report, 89% of executives have identified generative AI as one of the top three investment plans for the upcoming year. Additionally, 86% of companies are already experimenting with gen AI as an innovation tool.
However, BCG advises against relying solely on generative AI as a solution for driving innovation. Rather, it should be regarded as a potent addition to the innovation toolbox, working alongside traditional predictive AI. The report’s co-authors stress that generative AI will only yield competitive advantage and growth when the products and services it aids in producing are effectively implemented.
The BCG report identifies companies that have successfully harnessed the power of generative AI and found that the top innovators are 1.5 times more likely to have implemented generative AI and are five times more likely to be applying the technology at scale. These companies are weaving together generative AI and traditional predictive AI, utilizing the former to enhance creativity, produce content, and distil extensive data.
To achieve successful integration of AI technologies, BCG offers guidance to businesses, which includes securing quick wins, reassessing critical internal functions, generating and marketing new products, testing strategic assumptions, creating media content, identifying innovation domains, and developing ecosystem insights. The report underscores that generative AI should be employed to amplify and guide human-inspired ideas and endeavors, rather than supplanting human creativity entirely.
In conclusion, while the potential of generative AI in unleashing innovative capabilities across diverse industries is evident, it should be seen as a tool that can enhance and inspire human creativity. As businesses continue to explore its potential, there is a growing consensus that generative AI has the capability to elevate innovation to new levels when utilized in collaboration with human ingenuity.