Thursday, June 20, 2024

Deloitte: Poland enters the phase of economic expansion

The divergence of economic moods in Poland...

Two Years On: War in Ukraine and Its Global Impact

On February 24, 2022, a full-scale Russian...

Companies are taking a cautious approach to GenAI adoption, despite its growing role

BUSINESSCompanies are taking a cautious approach to GenAI adoption, despite its growing role

The latest EY study – Reimagining Industry Futures Study 2024 – confirms the growing role of generative artificial intelligence (GenAI) in business. Currently, 43% of surveyed enterprises worldwide, including Poland, are investing in this technology, with an additional 30% planning to do so within the year. At the same time, over one-third of respondents (38%) advocate for a balanced and gradual approach to the adoption of GenAI, aiming to develop appropriate operational methods, particularly in terms of ethical data management. The EY research indicates that 73% of companies wish to better understand the concept and use cases of this solution, while 69% feel the need to learn more about the associated risks.

Investing in modern technologies is now not just a response to the need for greater digitalization of enterprises for competitiveness. More than half of the respondents (56%) believe that new solutions can play a significant role in accelerating sustainable development. Up to 81% of firms cite ESG as an important factor in technology investments, marking a 5 percentage point increase compared to the 2023 report. Meanwhile, three-quarters of respondents (75%) think they need a better understanding of how various modern solutions can be integrated to create value and use their potential more effectively.

Investments in New Technologies

Currently, the largest percentage of firms invest in analytics and AI as well as robotics with automation (63%). GenAI is ranked third (43%), followed closely by edge computing (42%). Interestingly, GenAI was not even listed among the most popular technologies in last year’s survey, making its current prominence all the more noteworthy. The development of this solution could accelerate even further, as nearly one-third of surveyed enterprises (30%) plan to invest in this area over the next three years.

Respondents also plan to develop 5G networks (28% of indications) and the Internet of Things (25%). Conversely, technologies perceived as irrelevant to business or not part of companies’ plans include augmented/virtual reality (AR/VR) and blockchain, with 40% and 39% of responses, respectively. Along with quantum computing, these are the least invested-in solutions – only one in five organizations (19%) does so. The reasons could include high entry thresholds related to significant financial outlays and the need for specialized staff to develop the technology according to business needs.

“One of the most important trends emerging from this year’s study is the dynamic investment in GenAI. Companies see it as a huge opportunity for their technological transformation. All the analyzed solutions are associated with a series of strategic and practical challenges regarding their implementation. Key among these are security and data management. Without properly developed operational mechanisms and high levels of cybersecurity, even the largest investments in modern technologies may not yield expected results. Equally important is scaling their use. For now, most companies are only in the concept verification or pilot phase,” comments Radosław Frańczak, Partner at EY Poland, Leader of the Technology Consulting area.

GenAI to Improve Data Management

Generative artificial intelligence is quickly gaining importance, confirming its status as a potentially breakthrough technology for business. Meanwhile, companies are taking a cautious approach to its application – the majority of respondents (38%) prefer gradual implementation. This is due to a significant knowledge gap that hampers the full utilization of GenAI’s potential. Enterprises primarily want to better understand the use cases of this technology (73%) and learn about the risks associated with it (69%).

When asked about the main priority related to the development of GenAI in their organization, respondents most frequently mentioned better data management to combat threats related to data accuracy and ethics (46%). This is particularly important for the financial services sector, where the response rate reached 52%. The second most common priority was the use of GenAI as part of a broader technological strategy and integrating various solutions to enhance value (41%). The third priority was building a better understanding of this technology (40%).

“Company representatives avoid unwarranted optimism and are aware that the implementation of generative artificial intelligence is a lengthy process. The better planned and executed it is, the greater the chance of seeing positive outcomes quickly. Besides increasing efficiency and productivity within the organization, GenAI also acts as a catalyst for transformation. By leveraging its capabilities, such as rapid learning, companies can enhance customer experiences and personalize their products and services. Internal changes are equally important, such as the automation of complex and creative tasks and discovering new patterns in large datasets,” states Mateusz Mazur, Partner at EY, leader of the Cloud Enablement and IT Advisory teams.

5G with Growth Potential

The EY study shows that over half of the surveyed firms (52%, down from 57% the previous year) plan to invest in 5G technology within the next three years. At the same time, one in five respondents (20%) stated that this technology does not relate to their business or is not part of their investment plans. Companies are open to various models of acquiring Internet of Things solutions based on 5G. The most popular

model is purchasing 5G connectivity and applications through an intermediary, such as a Mobile Virtual Network Operator (MVNO). On the other hand, the wide range of IoT implementation options based on 5G can be a source of frustration, as more than half of the firms (53%) struggle to determine which model is best for them.

Integrating 5G networks with existing technology and processes remains the biggest internal challenge for enterprises. A poor understanding of the relationship between 5G and other solutions, such as cloud computing, was again a significant issue, while limited awareness of the 5G supplier ecosystem (previously fifth place) has become a broader challenge in this area.

“5G networks offer a tremendous opportunity to increase efficiency with the continuously growing amount of data being collected. At the same time, the development of this technology entails the need to control cybersecurity risks and protect data. A major challenge is also integrating 5G with AI solutions and other modern technologies to achieve a synergy effect and increase the value derived from digital transformation and the data collected. In this case, technology providers play an important role not just in selling their solutions but in filling the knowledge gap and implementing the values that come from combining different solutions,” observes Tadeusz Kurdziel, manager in the Technology Consulting area at EY Poland.

About the Study
The Reimagining Industry Futures Study 2024 was conducted online in November 2023 among 1405 entrepreneurs worldwide, including Poland.

Check out our other content
Related Articles
The Latest Articles