Manufacturers have successfully deployed only 20% of planned AI initiatives according to the second annual Gen AI survey commissioned by Lucidworks
- Less than 60% of manufacturers plan to increase AI spending in 2024 compared to 93% in 2023
- Despite a slower-than-anticipated rollout, nearly half of manufacturers already report cost benefits from AI initiatives
- Only 1 in 4 companies across all industries have successfully launched AI initiatives in the past 12 months
SAN FRANCISCO, July 10, 2024 (GLOBE NEWSWIRE) -- Lucidworks, a leader in search and total AI solutions, today released new manufacturing findings from its second annual Generative AI Global Benchmark Study. The study gathered input from over 2,500 leaders involved in AI technology decision-making worldwide. The report explores key areas of generative AI investment and organizations' progress in adopting generative AI.
While initial excitement for AI was high, the actual implementation of planned initiatives has been sluggish across most industries. In 2023, more than 40% of manufacturing leaders had a positive view of AI, with 93% planning to increase investments. In 2024, only 58% plan to increase their spending. 30% worry that they’re falling behind their competition, with only one in five successfully deployed initiatives. Despite slow deployment, manufacturers reported above-average cost benefits (48%).
Across the board, concerns around security, response accuracy, and costs have forced most businesses to slow down their planned initiatives and be more strategic about the balance between cost and benefit. Security worries have tripled, accuracy concerns have grown fivefold, and transparency issues have quadrupled since 2023. Manufacturers have some of the most concerns around response accuracy (44%) and some of the least concerns around job displacement (3%) compared to other industries.
The 2024 Generative AI Global Benchmark Study also includes the following findings:
- Investment Slowdown: Global AI spending plans are down sharply, with only 63% planning increases (vs. 93% last year). USA-based organizations remain above average with 69% planning to increase AI spend.
- Slow Progress: Delayed deployment and low success rates are commonplace with only 25% of planned projects fully implemented. This lag is stalling anticipated ROI, with 42% of companies yet to see significant benefits from generative AI initiatives.
- Spending Flattens: Across all organizations, 36% of leaders plan to keep spending flat, compared to only 6% in last year’s survey.
- China’s Sharp Decline: Only 49% of Chinese leaders plan to increase AI spending in 2024, a massive drop from 100% in 2023.
- Commercial LLMs Dominate: Nearly eight in 10 companies use commercial LLMs and 21% have opted for open source only.
- Competitive Concerns: A third of business leaders feel like they’re falling behind competitors despite almost everyone struggling to implement this new technology.
“While many manufacturers see the potential benefits of generative AI, challenges such as response accuracy and cost are causing them to take a more cautious approach. This is reflected in spending plans, with significantly fewer planning to increase AI investments compared to last year,” said Mike Sinoway, CEO, Lucidworks. “However, above-average reported cost benefits in 2024 could make them more bullish in the coming year. B2B companies and manufacturers have much to gain if they can balance cost and risk to improve efficiency, enhance the buyer experience, and reduce operational costs using generative AI.”
Download the complete 2024 Generative AI Global Benchmark Study and accompanying manufacturing-focused findings today. Learn more about Lucidworks at Lucidworks.com.
About Lucidworks
Lucidworks clients are more than 2.5x more likely to successfully deploy generative AI initiatives than their peers. The world's largest brands including Crate & Barrel, Lenovo, and Red Hat rely on Lucidworks' suite of products to power commerce, customer service, and workplace applications that delight customers and empower employees. Contact us today to build your AI success strategy.
CONTACT: Press Contact: Lauren Gill Escalate PR [email protected]
