Generative AI Spending is Stagnating Despite 70% of Companies Using It

As AI continues to grow by leaps and bounds, more and more companies are trying to experiment with it to one extent or another. According to a recent survey conducted by VentureBeat, over 72% of companies are using generative AI, with 18.2% going so far as to incorporate it into their work processes.

Such a trend can prove useful because of the fact that this is the sort of thing that could potentially end up boosting productivity. However, just 18% of these companies are willing to up their investments into this space with all things having been considered and taken into account.

This seems to suggest that AI investment, at least as far as generative AI is concerned, is stagnating somewhat. 81.8% of the executives that responded to this survey stated that their budgets for generative AI are neither increasing or decreasing in the coming year. That might be due to them trying to see what results their current investments bring, since this would make it easier to figure out a gameplan for the future than might have been the case otherwise.

There has been a clear trend towards generative AI this past year, but in spite of the fact that this is the case, limited budgets are inhibiting growth in this space. Vendors that are trying to sell AI tools therefore need to create better pitches in order to entice their customers into shaking up their budgets and finding the funds for something that is rather out of the box.

With all of that having been said and now out of the way, it is important to note that there needs to be a certain level of prioritization among companies for AI to become commonplace. If corporations are only looking at short term profits, they might not see any value in investing in a piece of tech that no one even knew about just a year ago.

It will be interesting to see what other results this ongoing study brings. The consensus seems to be that AI has reached saturation, and it might not be able to grow more for a while.

Read next: Should AI Weapons Be Legal? 61% of People Say No
Previous Post Next Post