Published on February 28, 2024, 8:06 am

Generative AI has been a buzzword in the business world, with promises of transforming enterprises and enhancing productivity. However, despite its potential impact on the economy, businesses are finding it challenging to measure the Return on Investment (ROI) of this technology. While there are instant benefits like faster information retrieval for employees in recent deployments, achieving significant transformational change remains elusive.

CEOs are increasingly investing in generative AI, albeit without expecting immediate returns. According to a KPMG survey, most CEOs anticipate seeing ROI from generative AI investments within three to five years, with less than one-third expecting returns within one to three years. One company that jumped early on the generative AI bandwagon is Walmart. Starting with broad exploration of use cases, Walmart has now shifted focus to strategic implementation by delving deeper into selected ideas.

Walmart introduced an internal generative AI tool called My Assistant to 50,000 employees last August and plans to extend access to an additional 25,000 employees by January. Despite CEO Doug McMillon expressing optimism about the benefits of AI investments during Walmart’s recent earnings call in Q4 2024, he mentioned that it’s too early to quantify specific gains.

Business executives are keen on monitoring the evolution of generative AI while ensuring judicious IT spending and maintaining a skilled workforce. It is crucial for CIOs not to lower their expectations regarding this technology but rather adapt their strategies as needed, even if it means pivoting or discontinuing certain projects.

In conclusion, as businesses navigate the realm of generative AI and its potential impacts on operations and efficiency, staying informed about industry trends and insights becomes vital for decision-makers striving for success in an ever-evolving technological landscape.

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