Lucidworks study finds 93% of companies plan to increase their AI investments

AI

Big data application search provider Lucidworks Inc. today published the results of a generative artificial intelligence study that confirms what we all sensed by now: Some 93% of companies plan to increase their investments in AI within the next 12 months.

The findings, based on a survey of over 6,000 employees involved in AI technology decision-making, also found that there is a difference based on location as to companies planning on spending more on AI. All Chinese companies and 98% of Indian companies were found to be preparing to increase their generative AI investments, whereas the figure was 92% in the U.S. and 94% in the U.K.

Although companies were found to be embracing AI, many have a long way to go. The study found that, on average, companies have launched only 7.5 of 80 identified best practices, with the tech industry rising to an average of only 10.7 best practices employed.

Companies identified as not planning to increase investments in generative AI were found to have four times the number of concerns with the technology compared to those who do plan to invest. The study found that companies that are hesitant to increase spending on AI are more cautious due to concerns around the security of company data, the accuracy of AI-generated outputs, transparency in understanding how AI-based decisions are made, job displacement and ensuring responsiveness in terms of timeliness and tone.

The report also found that  companies in the entertainment, technology and consumer products industries are the frontrunners in plans to increase generative AI spending, followed closely by construction and real estate, financial services, and transportation. Entertainment leading the list does not come as a surprise, given reports that companies such as the Walt Disney Co. are currently exploring cutting costs through the use of AI.  

Entertainment and media companies, along with tech companies, were also found to be the most advanced practitioners of generative AI, with 21% being classified by Lucidworks as “AI Leaders,” double the number in every other industry. Conversely, professional services, government, hospitality and tourism sectors were found to be lagging in their adoption of generative AI.

“Now is the time to understand the strategy and operational opportunities of generative AI,” Lucidworks Chief Executive Mike Sinoway said ahead of the release of the study. “The fundamental shift that is occurring is rapid, global and highly impactful. This study confirms the emergence of generative AI industry leaders and laggards and those that move swiftly to orient their practices can move ahead quickly.”

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