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Forrester Study: Mining the generative AI gold rush
Software and technology companies are racing to adopt generative artificial intelligence (AI)—but at what cost? When research reveals that haste may harm results, discover how to capitalize on its potential.
In this commissioned study conducted by Forrester Consulting on behalf of AWS, 657 software leaders around the world were surveyed to uncover how their organization is approaching generative AI. The research finds that many are taking a gold rush mentality by deploying solutions rapidly and ramping up investment—but this can create barriers to long-term growth. Forrester’s study shines a light on what’s missing from AI strategies.
Key findings
Generative AI promises to revolutionize industries and the world around us, but expensive and unsustainable approaches are stunting progress.
The value of planning and preparation
In the past six months, 63 percent of software companies have launched at least one generative AI product, and over half of respondents reported a 5 percent or greater increase in budget for generative AI product development. While enthusiasm for generative AI is surging, many are struggling to develop robust, proven business models. And without the proper planning and skilled talent, companies can hinder long-term success.
Shifting away from surface-level solutions
Only 23 percent of software companies consider delivering better user experiences a critical priority compared to, for example, increasing brand awareness (39 percent). To drive value from generative AI, software companies need to focus on deep integration and novel capabilities that map directly to user benefits. Moving away from generic use cases and continually evaluating customer needs will help drive differentiation and return on investment.
Underestimating the importance of trust
Data suggests that most software companies underestimate the importance of regulatory compliance, data privacy, and security to their customers. Only 31 percent currently sell the value of their generative AI products based on trust, transparency, and governance features. This oversight can not only lead to a loss of customer trust, but also increased costs and potential penalties.
Strategic partnerships drive tangible impact
Pricing strategy tops the list of business-related challenges when developing generative AI products, with uncertainty around demand and adoption, as well as concerns around business model scalability also ranking highly. While software partners have concentrated on working with technical providers, increasing the strategic value of partnerships can help them co-develop products with proven and scalable impact.
AI is making its mark on the software industry
36%
projected generative AI growth through 2030
46%
using cloud-based generative AI platforms in the next 12 months
60% of software companies have increased annual R&D budget
Find out why boosted investment needs to be balanced with careful planning.
