Generative AI Adoption | The Lessons from Early Adopters

R E P O RT

The State of
Generative AI
adoption
The Current Landscape and
Lessons from Early Adopters

01
Generative AI Adoption | The Lessons from Early Adopters

05. Preparing for a New Breed of Customers: The Gen AI Natives by Sudhir Chaturvedi

07. Reimagining Business Processes and Interactions with Gen AI by Nachiket Deshpande

09. Navigating the Generative AI Frontier — An Early Roadmap Emerges

Table of 12. Gen AI Goes Big: Consumer Giants Steer the Adoption Ship

16.
Contents 19.
Seamless Customer Experience Motivates 81% of Early Adopters

Early Adopters Share the Roadmap

26. Scaling the Summit – Barriers Faced

31. Generative AI: How Early Adopters Are Getting It Right by Jitendra Putcha

33. Riding the Wave – Early Adopters Witness Gains

36. Navigating the Gen AI Roadmap: From Efficiency to Creativity by Deepak Khosla

38. Beyond the Code – Leaders Champion ‘Mindful AI’

40. The Need for Ethical and Mindful Use of Gen AI by Nachiket Deshpande

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Generative AI Adoption | The Lessons from Early Adopters

Foreword

Generative AI – From Hype to Business Impact

Generative AI has surged onto the global stage, disrupting traditional Firstly, business leaders must craft a well-defined strategy for
business practices and models. As leaders, innovators, and analysts, scaling generative AI deployment to yield enduring, high-impact
we are engaged in a race to effectively harness and apply generative results. Isolated pilot programs will not suffice; what’s needed is

AI tools. While we marvel at the capabilities of tools like ChatGPT a strategic approach that encompasses platformization, industry-

and Google Bard, which produce lifelike content, it is now crucial for specific training, and an unwavering commitment to ethics, aligning

businesses to shift their focus towards achieving measurable returns with the demands of our times.

on investment.
I have led numerous AI projects globally, and my experience
underscores the importance of having a clear AI strategy aligned
Drawing from my extensive experience collaborating with global
with business objectives. This begins with identifying high-impact use
corporate clients, it is clear that generative AI currently finds itself
cases, ensuring that AI initiatives are purposeful and value-driven.
in the ‘Hype’ phase—a natural stage for emerging technologies.
The real challenge lies in how businesses can adapt, scale, and
My experience and this research affirm that the accuracy and
ethically deploy these tools to realize tangible outcomes. As I have
Pascal Bornet effectiveness of generative AI solutions hinge on the quality,
emphasized over time, businesses investing in Gen AI should expect diversity, and relevance of the underlying data used to train AI
Pascal Bornet is an award-winning expert, author, keynote speaker, substantial and measurable results. models. Hence, developing and fine-tuning narrow, industry-specific
and influencer in Artificial Intelligence (AI). Bornet, with 20+ years Language Models (LLMs) are crucial. These models, enriched with
So, where should they embark on this journey? industry-specific knowledge, enhance content generation and task
of executive experience at McKinsey and EY, regularly ranks as one
Based on my experience, corroborated by the research conducted performance. For instance, a ‘law’ domain-specific model undergoes
of the top 10 global AI experts. He’s a tech influencer with over a
by LTIMindtree, two key areas are critical for transitioning specialized training encompassing terminology, legal texts, cases, and
million social media followers.
generative AI from hype to lasting impact: a well-defined specific terminology. Once fine-tuned, these industry-specific models
strategy to enable scale and a responsible approach to ensure the excel in generating content, answering questions, or performing
sustainability of the transformation. tasks tailored to their respective industries.

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Generative AI Adoption | The Lessons from Early Adopters

Businesses must also embrace a ‘platformization strategy’ to ensure How can businesses implement Mindful AI? and a cautionary tale. It encourages innovation with a

robust and rapid scalability. Based on my experience, neglecting Businesses must routinely audit and update their AI systems to ensure sense of purpose and responsibility. It is essential reading for

adherence to the highest ethical standards. Strict data privacy and anyone committed to making a meaningful impact in our
this aspect may hinder the development of the robust and scalable
security standards must be upheld, and models should be scrutinized generative AI-fueled future.
technology infrastructure necessary for successful AI deployment.
to prevent the perpetuation of harmful biases. Additionally, robust
Secondly, this study is a timely reminder that our technological cybersecurity measures should be implemented, and businesses

aspirations must never outpace our commitment to responsible should comply with relevant data protection regulations to safeguard

and ethical practices. Businesses need to proactively manage the sensitive information.

limitations and risks associated with generative AI. As the potential

Lastly, having acquired the necessary talent and expertise in AI,
of this transformative technology grows, so does our responsibility
machine learning, and domain-specific knowledge, skilled resources
to use it ethically and securely. My observations have shown how
should prioritize transparent and explainable AI models. The next
AI can bring remarkable benefits to humanity, but groundbreaking
generation of workers entering the workforce will be AI natives. It is
technology demands even greater responsibility. As we strive for
crucial to ensure that AI natives and stakeholders understand how
technological advancement, businesses must handle data reliably,
AI makes decisions, fostering trust in AI and enabling better risk
ethically, and securely, keeping a firm foothold on ethical and
management practices associated with responsible AI.
practical grounds.

The transformation brought about by generative AI transcends the

Leaders must engage in ‘Mindful AI’ practices, educating themselves mere adoption of a new technology. It involves reshaping business
and their stakeholders about the risks when designing AI solutions. strategies, prioritizing ethical considerations, and continuously
When AI is employed, team members should have a say in shaping aligning with evolving societal needs. This report distills the essential
AI development. Businesses must prioritize human values in their strategy for businesses to successfully navigate the generative era.
endeavors, empowering team members to voice concerns and Whether businesses are on the cusp of this AI revolution or deeply
advocate against AI usage if necessary. immersed in their AI journey, this work serves as both a guiding light

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Generative AI Adoption | The Lessons from Early Adopters

Preparing for a New Breed of Customers: The Gen AI Natives

The ability to predict the future is central to society. Today, we try to Before exploring the answer, let’s understand that Digital Natives,2 of the change is to understand that technology, until now, has been
predict everything, from the outcome of the ball game this evening in direct contrast to Analog Natives before them, grew up with used to improve productivity, efficiency, accuracy, convenience, and
to the weather tomorrow morning, from the state of the stock technologies like the Internet and the mobile phone. The primary compliance. For the first time, with Gen AI, we have tools that aid
market this month to the likely value of our investments next year life experience of Digital Natives for everything, from shopping, and improve creativity. So, the expectations of this generation, their
and the possibility of a pandemic in the next decade. The availability entertainment, playing, and banking to studying, finding a partner, work ethics, and social behavior will be radically different.
of data and statistical models has made this possible. But we are now and giving job interviews, has been online. When they say, “Let’s
poised at a radical moment in the history of civilizations: for the first meet,” they mean on Teams, Google Meet, Zoom or Slack.
time, we have generative AI (Gen AI), a technology that is as smart as
us, if not more. This technology will do for creativity what statistical In the early 2000s, a friend said he would admit his Millennial
models did for data. children to a school where using the mobile phone was a formally
taught life skill. I assumed he was joking. Now, I think back on that
The World Economic Forum captured the coming change with remark and am convinced he meant it seriously. Whatever the case,
Sudhir Chaturvedi
remarkable exactness: “Until just a few months ago, AI was a today, parents and teachers must help children with Gen AI. As it Whole-Time Director & President,

mysterious and obscure technology for most of us. Millions of people turns out, in the wake of the “wildly popular AI chatbot ChatGPT,” LTIMindtree

are chatting with mesmerizingly powerful AI tools that use everyday the MIT Technology Review has thoughtful advice for parents. It
language. Suddenly, the vast potential of generative AI is dawning offers six tips on how to give your children an AI education in the
on us.”1 Recently, when the results of an LTIMindtree study called times of Gen AI. The first is to remember that AI is “not a friend,”
The State of Generative AI Adoption came in, it set me thinking: and the last is “not to miss out on what AI is actually good at!”3
The children of Millennials—let’s call these youngsters ‘Gen AI
Natives’—weaned on Multi-modal Large Language Models (MLLM) Clearly, Gen AI Natives (born in 2017, the year Google introduced
and algorithmic dopamine will be different. But how different will the first transformer 4 and after) will be a step ahead. They are
they be, and what will businesses do to address this new generation growing up with super-intelligent technology that will enable a
of customers? profound shift in their thinking. One good way to sense the nature

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Generative AI Adoption | The Lessons from Early Adopters

While CEOs rush to add Gen AI into the upskilling syllabus of their The question, “Can I trust my provider?” will always haunt them.
workforce, product designers, marketers, and human resource So, organizations adopting Gen AI will do well to remember that the
Generation Alpha or Gen AI Natives? specialists must align themselves with the experience curve this new coming generation will highly prize ethical processes, transparency,

There are minor differences in terminology around Gen AI generation expects. Our study of early adopters shows that almost and regulatory compliance. Taking a proactive approach by

Natives. Some organizations may prefer to use Generation three-quarters of leaders are upskilling staff for future use of Gen embedding ethical practices and transparency into processes touched

Alpha – as is the case with the Institute of Electrical AI. They see Gen AI as the perfect way to personalize and refine by Gen AI will soon separate the leaders from the laggards.

and Electronics Engineers (IEEE). Interestingly, the IEEE products and experiences, but our study shows that content and

has determined that the children of Millennials, born creativity are low priorities. Only two in five companies have reported
after 2010 – the year iPads were launched – comprise content generation as the key reason for adopting Gen AI. This is
Generation Alpha. See https://transmitter.ieee.org/ai- as it should be. The technology is new. Investing in it to pursue the
2017/ for more on how the IEEE thinks AI will impact the primary business goals –income and profitability—is a ground reality.
coming generation, from infancy to retirement. Our study reflects this, showing that 33% of leaders see Gen AI
increase revenue by 20% or more.

But organizations should note what looms over the horizon. One
of the most hotly debated concerns is AI hallucination. Gen AI
models with their LLMs often tend to make up answers that sound
1
The golden age of AI: Why ChatGPT is just the start, World Economic Forum,
convincingly factual. This is because the training data for these
March 24, 2023: https://www.weforum.org/agenda/2023/03/generative-ai-chatgpt-
models, primarily acquired off the Internet, is unreliable. In addition,
machinelearning/
training the models is expensive. Therefore, these models must
2
The Millennial Generation, born 1977-1995
live with the reality of data cut-off—meaning the LLM will remain
unaware of anything beyond the training. Techniques to neutralize the 3
You need to talk to your kid about AI. Here are 6 things you should say, Rhiannon

hallucinations and bridge the gaps are being developed, but it will be Williams and Melissa Heikkilä, MIT Technology Review, September 5, 2023: https://
www.technologyreview.com/2023/09/05/1079009/you-need-to-talk-to-your-kid-
some time before streaming real-time input becomes financially viable.
about-ai-here-are-6-things-you-should-say/

4
Aside from misleading “hallucinatory content,” Gen AI enables the Transformer: A Novel Neural Network Architecture for Language Understanding,
Jakob Uszkoreit, Google Research, August 31, 2017: https://blog.research.
creation of deep fakes. This will make Gen AI Natives cautious of the
google/2017/08/transformer-novel-neural-network.html
technology. They will live in a world where the quality of content used to
personalize experiences and shape their behavior will always be suspect.

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Generative AI Adoption | The Lessons from Early Adopters

Reimagining Business Processes and

Interactions with Gen AI
Generative AI is rapidly changing how we engage with the internet, ground. And (spoiler alert), our study shows that a third of leaders
our applications and each other. Businesses are now in a frantic (33%) report that Gen AI increases revenue by 20% or more.
race to move beyond using AI for routine problem-solving. They
want to use Gen AI to reimagine their processes and interactions, We must pay attention to what these organizations are doing

and power business performance. Gen AI is a silver bullet that because Gen AI has become essential to transforming every part of

everyone will eventually bite, but, for the moment, it raises more society, business and governance. This is only the start of a trend

questions than it answers. that promises to leave an immediate and lasting impact on four key
business functions:
The emerging risk we see lies in treating Gen AI like a shiny new
toy rather than making it central to transformation and business 1. Customer and employee interactions: With the use of

preservation. More danger lurks when businesses are slow to shape contextual and enterprise-aware AI systems (such as chatbots),

a Gen AI roadmap aligned with their goals. There is no time available interactions can become more sophisticated, personalised, and

for vacillation. accurate while reducing response time. Gen AI can become an
invaluable tool to enhance customer and employee experiences
Should Gen AI be used to improve customer experience? Enhance in an age of consumer impatience.
product design? Improve data summarization? Enhance analytics?
Or create new business opportunities? Should it be used to improve 2. Supply chains: Gen AI can eliminate the manual and
operational efficiency? To help answer these and other confounding transactional work involved in managing supply chains. It can
Nachiket Deshpande
questions, we turned to organisations across the world who are support supply chain professionals by providing analytics that
Whole Time Director and COO,
showing us how to harness Gen AI successfully. Our survey is reduces execution latency. The result is efficient and agile supply LTIMindtree
uniquely illuminating because it examines what is happening on the chains that excel at timely deliveries and avoid inventory backlog.

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Generative AI Adoption | The Lessons from Early Adopters

3. Data summarisation: Gen AI can understand and summarise Our study distils the Gen AI strategies of 450 leading decision-makers
complex, unstructured data, helping businesses go beyond at businesses around the globe. It looks at who is adopting the
predictive analysis to achieve prescriptive analytics. Researchers technology, why it is being adopted, and the best ways to guarantee
may take upwards of US$25 an hour to summarise documents successful adoption. You can use this study to compare and
– and could make errors – while Gen AI can do the same in challenge your strategic choices related to Gen AI, shape and evolve
seconds and at a fraction of the cost. your thinking, and explore the value this technology can unlock.

If this study helps you make decisions around Gen AI with greater
4. Content generation: Gen AI is already disrupting the world
confidence, it will have served its purpose. I invite you to use it as a
of content creation. It creates advertising copy, produces social
guide to the future of your business.
media content, designs packaging, generates videos, writes
music (and poetry!) and translates without losing context. Its
ability to create diverse, compelling and personalised content at
scale can accelerate growth.
1
The economic potential of generative AI: The next productivity frontier, McKinsey
Digital, June 14, 2023: https://www.mckinsey.com/capabilities/mckinsey-digital/our-
Researchers say Gen AI could add the equivalent of US$2.6 trillion
insights/the-economic-potential-of-generative-ai-the-next-productivity-frontier
to US$4.4 trillion annually, above what other AI and analytics can
2
ChatGPT sets record for fastest-growing user base - analyst note, Reuters, February
unlock across the 63 use cases they studied.1 Given the pace at which
2, 2023: https://www.reuters.com/technology/chatgpt-sets-record-fastest-growing-
the Gen AI technology is developing—OpenAI’s ChatGPT became user-base-analyst-note-2023-02-01/
the world’s fastest-growing consumer application in history with 100
million users in 2 months2 —it is advisable to begin the adoption
journey now.

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Generative AI Adoption | The Lessons from Early Adopters

Navigating the Generative AI Frontier — An Early Roadmap Emerges

What sets leaders in Gen AI apart?

In a world defined by relentless technological advancements, one user-friendly AI technology, and effective communication and
innovation stands out as a transformative powerhouse: generative AI. change management.
It embodies a seismic shift that is indelibly shaping the contemporary
business landscape. Our report, The State of Generative AI Adoption: The data reveals that leaders and moderate adopters are keen to
co-develop Gen AI solutions in close partnership with technology
The Current Landscape and Lessons from Early Adopters delves into
providers, with a resounding 52% of both groups choosing this
one core question: what sets the leaders in generative AI apart, and
path. However, for enterprises yet to embark on their Gen AI
how can others emulate their success?
journey, formidable barriers loom large, including operational costs,
challenges related to data quality and availability, and the need for
Our survey was conducted in August 2023. Its findings reveal
precise identification of suitable use cases. A staggering 79% of
widespread experimentation with Gen AI tools, despite their relative
leaders cite ethical, security, or regulatory issues as barriers to the
novelty. Respondents not only embrace experimental use but
successful adoption or scaling of Gen AI, while 78% identify a lack of
also anticipate a profound transformation within their industries.¹
suitable skills, expertise, or knowledge as their greatest challenge.
Globally, the United States leads in Gen AI adoption, surpassing UK
and Continental Europe, while the Nordic regions fall behind. Early adopters share a common vision: harnessing Gen AI to elevate
customer experience, drive revolutionary product design, and unlock
Our report unveils a comprehensive roadmap for the Gen AI journey.
the transformative capabilities of data analytics. Gen AI is proving to ¹ For the purposes of this roadmap, we will refer to those who state that they have
This roadmap highlights five pivotal success factors: unwavering be a sound investment for these pioneers, delivering benefits such as extensively adopted Gen AI, across multiple functions of their business, or their
leadership, access to skilled personnel, effective training programs, improved operational efficiency, greater revenue, and streamlined costs. entire organisation, as leaders.

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Generative AI Adoption | The Lessons from Early Adopters

Survey Unveils Blueprint for Shaping the Future

How Leaders Use Gen AI

Early or Extensive Adopters Pre-Adopters’ Intended Use

Improve Customer Enhance Product

81% Experience
57% Design/Innovation

78% 75%
Enhance Data Improve Efficiency
68% Optimize Processes 49% and Analytics
Enhance Customer
Experience

Top Use Cases in the US, UK and Continental Europe, and the Nordics Investments in Gen AI

Pre-Adopters Invest in Early Adopters Explore

Research and Development New Use Cases

75% 80%
Improving Customer Experience

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Generative AI Adoption | The Lessons from Early Adopters

Successful Gen AI Adoption: Key Factors Barriers to Successful Gen AI Adoption

Strong Leadership & Management Support 60% Pre-Adopters Identify
High Operational Costs
85%
Access to Skilled Personnel
69%
Effective Training & Education
59% AI Strategy Gap 72% 75% Data Quality or
Availability Issues

User-Friendly AI Technology
53%
Effective Communication &
Change Management 51% 72% 75%
Difficulty Identifying Technical
Suitable Use Cases Infrastructure Challenges

Critical Success Factors Across Regions Critical Challenges Across Regions

UK and Continental
Europe
62% Leadership
80% 78% 81%

57% 68%
US US UK and Continental Europe Nordics
Access to Skilled Nordics
Selecting Appropriate Data Quality or Technical Infrastructure
Personnel Leadership
Use Cases Availability Issues Challenges
11
1
Gen AI Goes Big: Consumer Giants
Steer the Adoption Ship
Regulated sectors play it safe
Generative AI Adoption | The Lessons from Early Adopters

Retail and manufacturing outpace banking & healthcare in Gen AI adoption

• Four in 10 leaders have an annual turnover of

$20 billion or more

41% of those leading the charge in Gen AI adoption are large

21% 21%
Travel, Transport, Manufacturing, Energy corporates, with an annual turnover exceeding $20 billion. In
15% 13%
Hospitality & Utilities, Oil & Gas contrast, businesses with an annual turnover of under $1 billion
16% 16%
17% 20% are trailing in the race. Our survey shows that larger companies
are exploring in-house solutions using API plug-ins and their own
15% 10% databases. One in five smaller and mid-tier businesses are choosing,
Banking, Financial 14% Communications, 18% instead, to collaborate with service providers to create cost-effective
Services, Insurance 20% Media, Technology 18%
and tailored Gen AI solutions that meet their needs.
17% 17%

10% 22% • The US leads the way

Retail and Consumer 18% Healthcare and 21%
Packaged Goods (CPG) 16% Lifesciences 16% The United States currently surpasses UK and Continental Europe
20% 9% in Gen AI adoption, with 61% of Gen AI leaders based in the US
compared to 39% in UK and Continental Europe. Only 10% of Gen
AI leaders are found in the Nordic regions. The US holds a dominant
position due to its thriving tech giants, such as Google and Microsoft,
We have not yet adopted We have limited experience We have moderate adoption We have extensively as well as a vibrant venture capital scene, centred in Silicon Valley.
generative AI models but of using generative AI in of generative AI in specific adopted generative AI
will do so in the near future pilot projects areas or departments across multiple functions or Europe, known for legislative frameworks such as the General Data
the entire organisation
Protection Regulation (GDPR), has a unique alternative perspective on
Gen AI which emphasises ethics and privacy.

Q. In which sector does your organization operate?

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 13
Generative AI Adoption | The Lessons from Early Adopters

• 40% of early adopters are in retail and manufacturing

Consumer-facing industries such as retail and manufacturing

are at the forefront of Gen AI adoption, with 40% of Gen AI
leaders operating in these sectors. These industries recognize the
immense value of Gen AI in terms of personalisation, efficiency,
and competitive advantage. The use of predictive analytics
enables these businesses to anticipate consumer preferences,
much like Spotify suggesting songs for individual playlists.
The AI-driven evolution optimises operations and delivers the
streamlined, personalised digital experiences that consumers.

• Complex regulatory frameworks hinder adoption

Only 9% of Gen AI leaders are found in the healthcare industry,

despite its extensive use of advanced technologies such as big
data, machine learning and AI. Regulatory barriers, concerns
over the safeguarding of sensitive patient information, and the
complexity of health data contribute to the cautious adoption
of Gen AI in healthcare. Similarly, the banking and finance sector,
another highly regulated industry, includes only 17% of
Gen AI leaders.

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 14
Generative AI Adoption | The Lessons from Early Adopters

2
Seamless Customer Experience
Motivates 81% of Early Adopters
Process efficiency and product
innovation follow suit

15
Generative AI Adoption | The Lessons from Early Adopters

Leaders are primarily driven by enhancing customer experience in their adoption

of Gen AI

75% 34%
Improving customer Enhancing data and
73% 48%
experience or analytics
71% 47%
personalisation
81% 49%

78% 33%
Optimising 57% Streamlining creative 42%

processes/efficiency 60% content generation 41%

68% 36%

42%
Enhancing product 50%
design or innovation 56%
57%

We have not yet adopted We have limited experience We have moderate adoption We have extensively
generative AI models but of using generative AI in of generative AI in specific adopted generative AI
will do so in the near future pilot projects areas or departments across multiple functions or
the entire organization

Q. What specific business objectives or use cases are driving your organization’s adoption or
planned adoption of generative AI?

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 16
Generative AI Adoption | The Lessons from Early Adopters

Manufacturers using Gen AI to enhance operational efficiency

79%
80%
33%
60%
69%
in healthcare see use
Improving customer
79% 35%
experience or 72%
Enhancing data
33%
cases in personalization
personalisation 68% and analytics 59%
69% 53%
Across various industries, the primary driver for adopting Gen AI is the
67% 48% potential to enhance customer experience. Notably, the travel, banking,
61% 25%
and retail sectors exhibit a heightened interest in this advantage. In the
Optimising 53% 51%
71% Streamlining creative 36% realm of travel, AI enables personalised recommendations and streamlined
processes/efficiency
63% content generation 39% booking processes. In banking, it offers tailored financial advice, fraud
65% 35%
detection and efficient online interfaces. Within the retail sector, AI

40%
elevates personalised shopping experiences, product recommendations
44% and inventory management.
Enhancing product 49%
61%
design or innovation
56% In manufacturing, there is significant interest in leveraging Gen AI to
63% optimise processes and boost efficiency. This aligns with the industry’s
focus on maximising production, minimising waste and achieving
Travel, Transport, Banking, Financial Retail and Manufacturing, Communications, Healthcare and smoother workflows. In healthcare and life sciences, Gen AI primarily
Hospitality Services, Insurance Consumer Packaged Energy & Utilities, Media, Technology Lifesciences
Goods (CPG) Oil & Gas
serves to enhance product design and innovation. These industries
aim to utilise this emerging technology to develop innovative medical
equipment, pioneer new therapies and discover breakthrough drugs.

Q. What specific business objectives or use cases are driving your organisation’s adoption or
planned adoption of generative AI?

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 17
Generative AI Adoption | The Lessons from Early Adopters

59% of leaders use Gen AI in product development

Businesses also want to use Gen AI in marketing and corporate finance

53%
businesses in UK and Continental
63% 33% Europe use Gen AI in marketing
Product 60% 35%
Development 66%
Supply Chain
31% and sales
68% 28%

51% 29% For leaders, the most popular reason to adopt Gen AI is to accelerate
Marketing 49% 35%
Manufacturing new product development (71% name this as their most important
and Sales 53% 24%
46% 25% driver, and 59% see use cases in product development departments).
The possibilities are tantalising: manufacturers and retailers could use
47% 23% the technology to design new products based on market demand, with
Corporate 48% 25%
Human Resources instantaneous speed, or even tailor products to the immediate wishes
Finance 45% 21%
54% 26% of individual consumers. However, looking at the regional data, it’s clear
that while product development is seen as a key use for Gen AI across
all regions, the US is currently more likely than other regions to use AI in
manufacturing departments; UK and Continental Europe jumps ahead
Total US UK and Continental Europe Nordics when it comes to marketing and sales, and the Nordic regions are ahead
of the rest for Gen AI usage in corporate finance departments

Q. In which departments within your organization do you see use cases for generative AI adoption?

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 18
Generative AI Adoption | The Lessons from Early Adopters

3
Early Adopters Share the Roadmap
69% of leaders say skilled personnel play a key
role in successful adoption

19
Generative AI Adoption | The Lessons from Early Adopters

Key factors in successful Gen AI adoption

37% 34%
Strong leadership
68% User-friendly 62%
and management
55% AI technology 54%
support
60% 53%

30% 30%
Access to skilled and Effective
57% 56%
knowledgeable communication and
58% 56%
personnel change management
69% 51%

33%
Effective training and 53%
educational resources 60%
59%

Not yet adopted generative Limited experience of Moderate adoption of Extensively adopted
AI models but will do so in using generative AI in generative AI in specific generative AI across
the near future pilot projects areas or departments multiple Functions or
the entire organisation

Q. Which of the following do you believe to be the key factors for successful adoption
and implementation of generative AI in your organization?

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 20
Generative AI Adoption | The Lessons from Early Adopters

Access to skilled and

knowledgeable personnel

Strong leadership and Named by 69% of leaders Effective training and

management support The decisive factor often hinges on access educational resources
to talent. The market for individuals
Named by 60% of leaders Named by 59% of leaders
possessing Gen AI skills is experiencing

Successful adopters say that if an robust growth. Nonetheless, this dual- Training is a clear way for leaders to
organisation is to implement Gen AI edged realization unveils a striking achieve a digitally savvy management
effectively, the leadership team must be at paradox: 78% of industry leaders identify team and employees who can
the forefront of change. As a technology a shortage of suitable skills, expertise, or successfully implement and support
with a wealth of applications, Gen AI has knowledge as the foremost impediment to Gen AI. 71% of leaders are preparing
the potential to fundamentally alter the realizing successful adoption. the workforce for Gen AI by upskilling
way a business operates and expand the existing talent. Meanwhile, 46% are
possibilities of what it can achieve. Change collaborating with tech vendors to
must come from the top, and a steady augment their workforce. In thewake
hand is needed on the wheel. of this seismic technological shift,
workforces will not be replaced, 
but reskilled.

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 21
Generative AI Adoption | The Lessons from Early Adopters

Effective communication

User-friendly
AI technology
and change management

Named by 51% of leaders

Leaders report that in order to realise the

57%
in the US name access
transformative possibilities of Gen AI, to skilled personnel as
Named by 53% of leaders
organizations must have an effective change their top concern
Training is a clear way for leaders management strategy. When adopting this

to achieve a digitally savvy technology, institutions undergo a significant

management team and employees transition. This must be supported by structures, For businesses in UK and Continental Europe and the Nordic
who can successfully implement processes and systems, and workforces must countries, the most important priority on the Gen AI adoption
and support Gen AI. 71% of leaders undergo a shift in mindset. Leadership teams journey is strong leadership and management support (62% UK and
are preparing the workforce for will have to model a new way of working, and Continental Europe, 68% Nordics). This is an interesting contrast
Gen AI by upskilling existing talent. effective communication across the organisation to the US, where the top concern is named as access to skilled and
Meanwhile, 46% are collaborating must be in place to support behavioural change. knowledgeable personnel (57%). In a region where the use of Gen
with tech vendors to augment their AI is more established, the focus is less on change management.
workforce. In thewake of this seismic Instead, businesses who are further along their Gen AI journey seek
technological shift, workforces will to address a key emerging challenge: hiring employees with the skill
not be replaced, b
 ut reskilled. set necessary to support a nascent technology.

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 22
Generative AI Adoption | The Lessons from Early Adopters

For UK and Continental Europe and the Nordics, effective communication and change management joins strong leadership as a priority

58% 54% 50%

Strong leadership User-friendly AI Clear strategy and
53% 53% 55%
and management technology objectives
62% 54% 46%
support
68% 54% 42%

56% 51% 50%

Access to skilled and 57% Effective 48% Robust data 49%
knowledgeable 55% communication and 55% management and 50%
personnel 46% change management 59% quality 54%

54% 51% 47%

Effective training and 56% Collaboration with 51% Sufficient budget 53%
education resources 52% external tech vendors 50% allocation 60%
52% or partners 49% 39%

Total US UK and Continental Europe Nordics

Q. Which of the following do you believe to be the key factors for successful adoption and implementation of generative AI in your organization?

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 23
Generative AI Adoption | The Lessons from Early Adopters

50%
say a clear AI strategy is
essential for success

Across different industries, different priorities come to the fore when

considering the Gen AI adoption journey. For the consumer-focused retail
and manufacturing industries, and the public-facing media, the most
important concern is strong leadership and management support. This
may reflect a concern about managing consumer / public trust in Gen
AI solutions, and the need for processes and messaging to be clear and
unified. In the travel and banking industries, the top consideration is access
to skilled and knowledgeable personnel, perhaps indicating a lack of talent
in these industries with relevant AI skills. Within healthcare, the key priority
is effective training and educational resources, a clear concern for an
industry in which Gen AI may operate in sensitive contexts.

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 24
Generative AI Adoption | The Lessons from Early Adopters

User-friendly AI technology is a significant concern across the retail, manufacturing, and communications sectors

58% 54% 50%

53% 49% 52%
Strong leadership 60% 48% 48%
User-friendly AI Clear strategy
and management 64% 63% 59%
59% technology 56% and objectives 45%
support
63% 61% 47%
47% 44% 51%

56% 51% 50%

56% 51% 45%
Access to skilled and 68%
Effective 56% Robust data 56%
knowledgeable 53% communication and 48% management and 41%
personnel 53% change management 47% quality 49%
51% 53% 57%
53% 52% 48%

54% 51% 47%

45% 49% 45%
53% Collaboration with 48% 43%
Effective training and Sufficient budget
61% external tech vendors 51% 47%
education resources 51% 51% allocation 43%
or partners
56% 56% 49%
55% 49% 55%

Total Travel, Transport, Banking, Financial Retail and Manufacturing, Communications, Healthcare and
Hospitality Services, Insurance Consumer Packaged Energy & Utilities, Media, Technology Lifesciences
Goods (CPG) Oil & Gas

Q. Which of the following do you believe to be the key factors for successful adoption and implementation of generative AI in your organization?

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 25
Generative AI Adoption | The Lessons from Early Adopters

4
Scaling the Summit
Late Gen AI entrants face cost, data,
and infrastructure challenges

26
Generative AI Adoption | The Lessons from Early Adopters

Data Challenges and Use Case Hurdles: Primary Barriers to Gen AI Adoption

Data quality or
availability issues
77%
76%
78%
76%
Lack of suitable skills
expertise or knowledge
73%
73%
73%
74%
67%
see operational cost
76% 67%
as one of the barriers
Difficulty in identifying 80% 65%
appropriate use cases 73% Operational cost 69%
68% 72%

73% 60%
Ethical, security or Three of these barriers – the issues with data quality, identifying
73% 61%
Lack of AI strategy use cases and ethical issues of various kinds – were felt across
regulatory concerns 74% 59%
60% 69% all respondents, not just late adopters. Different regions struggle
with different obstacles on their path to Gen AI adoption. For
73%
the US, the key barrier is identifying appropriate use cases (cited
Technical infrastructure 72%
challenges 74%
by 80%). For the UK, Continental Europe, and the Nordics, it’s
81% data quality or availability issues (78%) while for the Nordics, the
number one barrier is technical infrastructure challenges (81%).

Total US UK and Continental Europe Nordics

Q. What are the greatest barriers to the successful adoption or scaling of generative AI solutions
within your organization?

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 27
Generative AI Adoption | The Lessons from Early Adopters

Operational cost

Named by 67% of respondents

Data quality or Difficulty in identifying
Cost is a significant barrier to Gen AI adoption,
availability issues resulting in a field of leaders who are
appropriate use cases
predominantly larger organizations. Operational
Named by 77% of respondents Named by 76% of respondents
cost is identified by 85% of late adopters
Data quality or availability issues are a common as the most important barrier to Gen AI The challenge of identifying appropriate
barrier to Gen AI adoption – for instance, an implementation. The irony is that leaders report use cases was named as a barrier to Gen AI
online retailer might struggle with AI-driven that Gen AI proves to be a reliable return on implementation by 80% of US-based firms:
product recommendations if their existing investment once the cost barrier is overcome. the most common barrier for this region. With
customer purchase data is incomplete or so many possible use cases, and considering
inconsistent. Without high-quality input data, the transformative effect it might have on a
businesses find it difficult to achieve meaningful business’ operations, deciding how to use Gen
and coherent outputs using Gen AI. AI is a key concern for adopters. For example,
a manufacturing firm might struggle to decide
whether to apply AI to quality control or supply
chain optimization.

28
Generative AI Adoption | The Lessons from Early Adopters

Lack of suitable
skills, expertise,
and knowledge
Lack of Regulatory issues
AI strategy Named by 73% of respondents
Named by 76% of respondents
Named by 60% of respondents Cost is a significant barrier to Gen AI adoption,
resulting in a field of leaders who are In this changing landscape, businesses are keen
Late adopters might not be sure how to get predominantly larger organizations. Operational to develop policies and standards to safeguard
started or what their priorities should be when cost is identified by 85% of late adopters their use of Gen AI, and this is of particular
starting their journey with Gen AI. Since as the most important barrier to Gen AI concern for leaders (see ‘Leaders are focused
implementing Gen AI systems often involves implementation. The irony is that leaders report on developing mindful AI.’) It’s clear that, as
significant investment in technology and that Gen AI proves to be a reliable return on organisations develop their usage, they must
training, and sometimes requires companies to investment once the cost barrier is overcome. monitor and evaluate the technology against
restructure their operations, a strategic approach standards of reliability, safety and ethics.
is paramount.

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 29
Generative AI Adoption | The Lessons from Early Adopters

81% of manufacturers identify difficulty in identifying appropriate use cases for Gen AI as the chief barrier to adoption

77% 73% 60%

79% 69% 64%
Data quality or 81% Technical infrastructure 77% 53%
71% 81% Lack of AI strategy 65%
availability issues 71% challenges 68% 60%
84% 63% 52%
76% 79% 67%

76% 73%
73% 79%
Difficulty in identifying 79% Lack of suitable skills 71%
73% 65%
appropriate use cases 81% expertise or knowledge 69%
75% 81%
77% 72%

73% 67%
69% 67%
Ethical, security or 73% 65%
68% Operational cost 76%
regulatory concerns 77% 73%
84% 61%
68% 61%

Total Travel, Transport, Banking, Financial Retail and Manufacturing, Communications, Healthcare and
Hospitality Services, Insurance Consumer Packaged Energy & Utilities, Media, Technology Lifesciences
Goods (CPG) Oil & Gas

Q. What are the greatest barriers to the successful adoption or scaling of generative AI solutions within your organization?

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 30
Generative AI Adoption | The Lessons from Early Adopters

Generative AI: How Early Adopters Are Getting It Right

Early adopters are true weathervanes in the technology space. • What investments in people will be necessary for upskilling and The applications of Gen AI in the area of customer experience
They inform us of the direction in which the wind blows. More cross-skilling? are limitless. The good news, say innovation management
importantly, they provide us with critical early indicators that • Which partnerships should be given priority? experts from Wharton, is that APIs from big tech will make
contribute to the long-term success of technology adoption based on sure integrating LLMs into digital user experiences will be
Our study, The State of Generative AI Adoption, was designed to
field experiences. The Roger theory tells us that early adopters drive democratized: “Even a small healthcare start-up, or a school
shed light on the thinking, decisions, and actions of early adopters of
industry behavior by reducing the uncertainty around new ideas1.
Gen AI. Among the host of invaluable insights, it extracts from users
of Gen AI, the study makes three things clear:
The insights gleaned from early adopters of generative AI (Gen AI),
can help enterprises to avoid missteps and false starts. Enterprises
1. Use Gen AI to amplify customer experience: Leaders who
can take a more considered approach to the technology, set
have extensively adopted Gen AI across multiple functions or
expectations, determine investments, and accelerate outcomes.
the entire organization are using Gen AI to improve customer
experience (81%). This is true for even those businesses with
Given the potency of Gen AI to reinvent entire industries and business
moderate adoption of the technology within specific areas of
processes, there is significant pressure from investors and customers
business (71%). The technology’s ability to handle and parse
to make fast moves in deploying Gen AI use cases. This creates risks
immense volumes of data – with its large language models Jitendra Putcha
as missteps will result in setbacks which can derail the AI strategy. So,
(LLMs)—helps it quickly and accurately summarize reports EVP – Data, Analytics & AI,
it is essential to get behind what early adopters are signaling:
LTIMindtree
(examples: financial, medical, sales, marketing, and compliance);

• Are there specific use cases or functions more suited for from a consumer perspective, the technology can go beyond

experimenting with the new technology? locating a product to looking for a solution; it can customize

• For which use cases can we expect the best ROI with the least risk? images in real-time based on customer profiles and preferences

• Which applications can be presented to end customers, and (example: show a customized thumbnail of a show on Netflix to

which applications might be risky without moderation? increase viewership), etc.

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 31
Generative AI Adoption | The Lessons from Early Adopters

district with antiquated technology infrastructure, will have The implications of this data on skills acquisition are Aside from boosting creativity and driving initiatives around
access to this technology.2” They also warn that integrating straightforward: for the moment, businesses considering Gen product development, customer experience, and productivity, Gen
the skills of LLMs will soon become “table stakes” – meaning, AI as part of their strategy would do well to partner with a AI can drive cost reduction, process accuracy, training and growth,
the sooner a business leverages Gen AI to improve customer technology provider with a dependable Gen AI talent bank. manage privacy and security, detect fraud, and enhance quality
experience, the better. If your business has a use case related to Meanwhile, businesses must wait to create in-house talent for control and safety.
customer experience, Gen AI should be a top priority. this function until prompt engineering is offered as an academic
course with industry-specific university specializations.
2. Focus on talent and next-generation skills: Our study shows
that in the US, the most important factor in the successful 3. Identify the right use case balancing risk & reward: Our
adoption of Gen AI is access to skilled personnel (57%). By study shows that leaders in Gen AI usage are exploring new
contrast, UK and Continental Europe highlights leadership (62%), use cases (80%). Not finding a proper use case can become
and the Nordics rate this factor even higher (68%). Strong a significant barrier to adoption, followed by data quality and
leadership, management support, and access to skills were listed availability issues (as expressed by 78% of respondents in UK 1
Diffusion of Innovations, Everett M. Roger, Simon and Schuster, 2003: https://
as three (of the five) top factors that dictate success. The access to and Continental Europe) and technical infrastructure challenges books.google.co.in/books/about/Diffusion_of_Innovations_5th_Edition.
skills cannot be emphasized enough. Globally, our study suggests (as expressed by 81% of respondents in the Nordics). An html?id=9U1K5LjUOwEC&redir_esc=y

that organizations that have extensively adopted Gen AI across interesting use case that showed up in the study was product 2
Create Winning Customer Experiences with Generative AI, by Nicolaj Siggelkow and
multiple functions or the entire organization believe that access to development—two-thirds of leaders want to use Gen AI to Christian Terwiesch, Harvard Business Review, April 4, 2023: https://hbr.org/2023/04/
create-winning-customer-experiences-with-generative-ai
skilled and knowledgeable personnel is the key to success (69%). accelerate new product development.
3
Anthropic, last retrieved October 4, 2023: https://jobs.lever.co/Anthropic/e3cde481-
An essential skill required to leverage Gen AI is that of a prompt Marketing and sales, corporate finance, supply chain, and human d446-460f-b576-93cab67bd1ed
engineer and librarian. Anthropic, an AI start-up founded by former resources also showed up in the study as fertile areas for use
OpenAI team members and backed by Google, observes, “Given cases. However, every industry will have its priorities that drive
that the field of prompt engineering is arguably less than two the adoption of Gen AI: media, tech, and healthcare will use it
years old, this position is a bit hard to hire for!” The company was for new product development; travel, transport, and hospitality
offering a salary in the range of US$250,000 to $375,000 for the will use it to improve customer experience; the communication
position3. A vital requirement of the position was “a creative hacker sector will use to enable data-driven decision-making and
spirit and a love for solving puzzles with a grasp of Python.” improve productivity.

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 32
Generative AI Adoption | The Lessons from Early Adopters

5
Riding the Wave
Early adopters witness revenue
gains and cost reductions

33
Generative AI Adoption | The Lessons from Early Adopters

Early adopters already ahead with Gen AI • For a third of leaders (33 %), Gen AI increases revenue
by 20% or more

As organizations grow acquainted with Gen AI, they are increasingly

recognizing the multitude of benefits it offers. Notably, 28% of leaders
have discovered that leveraging Gen AI results in an improvement in
operational efficiency, ranging from 20% to 40%. In comparison, only
14% of moderate adopters experience this level of enhancement.

Extensive adopters observe a significant positive impact on their

bottom line, further highlighting the value and potential returns this
technology brings. 80% of leaders see Gen AI increase revenue by 5%
47% or more. For 33%, revenue grows by at least 20%. According to the
44%
39% 40% survey, a third (33%) of organizations reported a decrease in costs by
30% less than 5%, while 55% experienced a decrease between 5% and
24% 23%
20% 20%, and 8% witnessed a substantial 20% to 40% decrease in costs.
Notably, experienced Gen AI users saw even greater savings, with
11%
10%
19% reporting a 20% to 40% decrease in financial outlay.
1%

• US sees costs decrease 20% more than UK and Continental

Less than 5% increase 5% - 20% increase 20% - 40% increase More than 40% increase
Europe and the Nordic regions

Analysing the regional impact, it is apparent that regions with higher

We have limited experience We have moderate adoption We have extensively adopted
investment in Gen AI are experiencing more pronounced positive
of using generative AI in of generative AI in specific generative AI across multiple
pilot projects areas or departments functions or the entire organisation outcomes. While companies across all regions have observed cost
reductions, a significant 72% of US businesses reported a decrease
of 5% or more, compared to 55% in UK and Continental Europe
and 52% in the Nordic region. This discrepancy reflects the greater
Q. Which of the following do you believe to be the key factors for successful adoption investment in Gen AI technologies made by organisations in the
and implementation of generative AI in your organization?
United States.

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 34
Generative AI Adoption | The Lessons from Early Adopters

• 80% of Gen AI leaders are exploring additional

Charting the future with collaborations and partners
use cases

Having experienced these benefits, leaders in Gen AI

• 71% of leaders are upskilling the workforce to support the • Five advantages of collaborating with vendors on Gen AI
usage demonstrate an eagerness to further explore
futureuse of Gen AI
and invest in the technology. Among those who have There are five clear reasons why half of leaders and moderate
not yet adopted Gen AI models, 75% are investing Early adopters are giving us a glimpse into what the future of adopters are choosing to develop Gen AI solutions in collaboration
in research and development. In contrast, 80% of work may look like. It seems that, in the wake of this seismic with vendors.
Gen AI leaders are actively exploring new use cases, technological shift, workforces will not be replaced, but reskilled.
Expertise: Collaborating with vendors allows companies to
indicating a strong commitment to expanding the 71% of leaders are preparing the workforce for Gen AI by
upskilling existing talent. Meanwhile, 46% are collaborating with combine their domain-specific knowledge with the technical
technology’s applications. This trend is more prevalent
tech vendors to augment their workforce – rather than investing in expertise of their partner.
in the United States than in Continental Europe or the
permanent hires in the early stages of development
Nordic regions. However, the UK and Contiental Europe
Cost efficiency: Research and development costs can be
stands out as a front-runner in scaling up existing Gen • Over half of leaders co-develop Gen AI solution
distributed between companies and vendors to make the process
AI initiatives, demonstrating its proactive approach to with partners
more affordable.
leveraging the technology’s potential.
Leaders who have already embraced Gen AI, and reaped
significant benefits, are allocating sizable resources to developing Risk mitigation: Working with experienced partners can reduce
their use of the technology. A notable 37% of leaders are the potential risks in the development phase.
dedicating 10–25% of their IT resources to generative AI projects,
recognising it as a worthwhile investment. Additionally, 52% of Speed customization: Vendors may have tools and frameworks

75%
leaders and moderate adopters are choosing to co-develop Gen in place to accelerate the deployment process. They can apply
AI solutions with tech partners or vendors, particularly in the US. their specialist capabilities to a business’ specific needs, creating a
Open-source tools are also gaining popularity, with 48% of leaders tailored solution.
and 44% of moderate adopters opting for this user-friendly
of US businesses software. Late adopters are following suit, with 81% planning to Continuous support: Companies can rely on ongoing support,
reported a cost reduction co-develop Gen AI solutions in the next 12-18 months, and 61% maintenance, and updates from their partner, ensuring that the
of 5% or more opting to use open-source tools over the same period. technology functions well over time.

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 35
Generative AI Adoption | The Lessons from Early Adopters

Navigating the Gen AI Roadmap: From Efficiency to Creativity

Innovation is the lifeblood of a business. The arrival of generative AI of early adopters. For a study called The State of Generative AI Once these early adopters have tasted success, they use Gen AI to
(Gen AI) heralds a new and exciting chapter in innovation. With its Adoption – The Current Landscape and Lessons from Early Adopters, improve personalization, enhance customer experience, and aid
ability to generate new data indistinguishable from existing data, LTIMindtree surveyed 450 decision-makers in large organizations product design.
the technology—with Large Language Models at its core—delivers across the US, Europe, and the Nordics that were early adopters
new ideas, processes, designs, content, and code. It is, therefore, of Gen AI. The survey results provide an interesting panorama of
no surprise the technology has captured the interest of businesses insights for organizations waiting to create a Gen AI roadmap.
across industries.
Our study shows that organizations widely using Gen AI improve
In the fashion industry, Gen AI has surprised us by using the style operational efficiency by 20 to 40%. By contrast, those who have
of legendary fashion designers to create a realistic catwalk with adopted it in a partial and limited manner enhance operational
futuristic clothes and environments1; it is helping research legal efficiency by a mere 14%. Shoring up operational efficiency around
libraries, summarize cases, and draft legal documents using natural procurement, production/maintenance, distribution, sales and
Deepak Khosla
VP and Business Head, Enterprise AI,
language conversations2; it can generate characters, dialogues, and marketing, communication, fraud/anomaly/leakage detection,
LTIMindtree
movie scenes (as was done for Everything Everywhere All at Once sustainability, customer experience, and decision-making enables
that won 7 Oscars in 20233); it can optimize component placement scalability and profitability. Our study also showed that 8% of Gen
in semiconductor chip design.4 AI users who had embraced it quickly and widely also saw a 20 to
40% decrease in costs. The study reaffirmed our belief that the most
These are eye-popping examples of transformation. They capture our extensive adopters begin their journey by targeting improvements in
imagination but are not illuminating when determining how the new operational efficiency.
technology can be leveraged to solve common, everyday problems.
To understand this, LTIMindtree decided to follow the breadcrumbs

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 36
Generative AI Adoption | The Lessons from Early Adopters

A major fallacy around Gen AI is that the technology is used the most sought-after roles currently is that of a prompt engineer.
to generate creative content. Our study shows that two in five These experts can “talk” to Gen AI platforms to deliver the required 1
Hyper-Realistic Meta Catwalk, Fashion Innovation Agency: https://www.fialondon.
com/projects/hyper-realistic-meta-catwalk/
companies have reported this as a key reason to adopt the results. Salaries for the role can range between US$250,000 and
technology—with retail, CPG, travel, transport, and hospitality US$375,000.5 The task of a prompt engineer is becoming even more 2
Generative AI for Lawyers: What It Is, How It Works, and Using It for Maximum
Impact, LexisNexis, May 22, 2023: https://www.lexisnexis.com/community/insights/
leading the trend— but streamlining creative content is a low sophisticated with the emergence of new applications that improve
legal/b/thought-leadership/posts/generative-ai-for-lawyers
priority for leaders. There is considerable wisdom in making content prompts iteratively. Called Promptbreeders6, they use a self-referential
3
generation a low priority. The creative process is fueled by freedom loop to trigger a prompt mutation. The result is specialized high- How AI tools are creating new possibilities for movies and visual design, according
to this AWS-powered startup, Amazon, March 29, 2023: https://www.aboutamazon.
and experimentation, not by rules and algorithms. It should remain performance prompts for specific applications outperforming state-
com/news/aws/how-ai-tools-are-creating-new-possibilities-for-movies-and-visual-
in the hands—and heads—of humans. Using Gen AI for content, of-the-art prompt strategies. design-according-to-this-aws-powered-startup
however, may benefit smaller organizations that may not have the 4
Beyond ChatGPT: The Future of Generative AI for Enterprise, Gartner, January 26,
budgets to create the large volume of content required to feed Early adopters are shedding light on where the Gen AI roadmap
2023: https://www.gartner.com/en/articles/beyond-chatgpt-the-future-of-generative-
today’s marketing and business programs. should lead. Organizations that are considering Gen AI as a business ai-for-enterprises
tool should examine the trends they are setting (download The State 5
Anthropic, last retrieved October 4, 2023: https://jobs.lever.co/Anthropic/e3cde481-
The survey shows that 81% of organizations that have adopted Gen AI of Adoption of Generative AI – Lessons from Early Adopters now) to d446-460f-b576-93cab67bd1ed
extensively across multiple functions or the entire organization use it to guarantee faster returns. But the supply of talent to help follow the 6
Promptbreeder: Self-Referential Self-Improvement Via Prompt Evolution, Fernando,
improve customer experience. In comparison, 68% use it to optimize roadmap has, unfortunately, not kept pace. Organizations have two C., Banarse, D., Michalewski, H., Osindero, S., & Rocktäschel, T., September 28, 2023
processes and enhance efficiency. A mere 36% of these organizations options: wait for universities to offer formal courses in Gen AI that [2309.16797] Promptbreeder: Self-Referential Self-Improvement Via Prompt Evolution

use technology to streamline creative content generation. create the talent pool or leverage the existing talent available with (arxiv.org)

their technology partners. It does not take much to place a bet on

The inability to logically place Gen AI in the technology roadmap is the fact that practical and ambitious organizations will choose the
the primary barrier to harvesting the potential of the technology. latter option for the next several years.
However, the lack of Gen AI skills and capabilities can also hinder the
creation of a well-rounded roadmap.

The challenge is in being able to use Gen AI applications and

frameworks. These require natural language processing and deep
learning expertise—skills that are in short supply. However, one of

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 37
Generative AI Adoption | The Lessons from Early Adopters

6
Beyond the Code
Leaders champion ‘Mindful AI’ with 79%
carrying out regular Gen AI usage audits

38
Generative AI Adoption | The Lessons from Early Adopters

100% early adopters have some checks in place to counter bias

79%
leaders consistently
We regularly monitor 62% We have implemented 32%
audit their Gen AI usage
and evaluate AI systems bias detection and
for potential biases and 67% mitigation techniques 25%

take corrective actions during the development

60% 40%
where needed of AI models
The behaviour of leaders does not just serve as a harbinger of shifts
in work culture but also of the rise of ‘mindful AI.’ An impressive
79% of leaders consistently audit their Gen AI usage for ethical
33% 5%
We have established compliance. Early adopters seek to address potential issues of bias
We do not have any
inter disciplinary teams 49% 1% and discrimination. As organisations progress in their use of Gen AI,
checks in place right
to develop AI solutions they continue to monitor the technology for reliability, safety, and
now
to minimise bias 54%
ethical usage. For companies who find themselves at the beginning
of their Gen AI journey, one clear question emerges: How to ensure
reliability, security, and ethical use of this emerging technology?

Limited experience of using Moderate adoption of Extensively adopted generative AI

generative AI in pilot generative AI in specific across multiple functions or the
projects areas or departments entire organisation

Q. Which of the following do you believe to be the key factors for successful adoption
and implementation of generative AI in your organization?

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 39
Generative AI Adoption | The Lessons from Early Adopters

The Need for Ethical and Mindful Use of Gen AI

“Trust is the currency of interactions,” says Rachel Botsman1, author There are several instances where Gen AI has proven to be To unravel how businesses were approaching Gen AI and the
of Who Can You Trust? and the creator of the first course on trust in problematic. In a recent incident, a lawyer in the US reportedly challenges around its use, LTIMindtree surveyed 450 early adopters of
the digital world at Oxford University’s Saïd Business School. When used ChatGPT for case research. The judge found that six cases the technology across the US, UK and Continental Europe, and the
the interactions and relationships with a business cannot be trusted, being referred to did not exist and had bogus judicial citations. The Nordics. Called The State of Generative AI Adoption, the study found
it can lose as much as 30% of its value2. The arrival of generative lawyer was unaware that the contents created by ChatGPT could that leaders were focusing on developing “mindful” AI. As many as
AI (Gen AI) throws a curved ball into the management of trust. be inaccurate or even false3. This is not an isolated incident. Parents,
Although Gen AI makes the tantalizing promise of revolutionizing teachers, and administrators are worried that children will use Gen AI
business productivity, there are deep concerns around its ethical applications to create their college assignments and pass them off as
use, which can affect trust if not handled correctly. Understanding their own. Truthfulness and accuracy are at stake.
ethical issues and using that wisdom to keep the trust of customers,
Another clear problem is associated with the data being used to train
partners, and society is an immediate responsibility that businesses
LLMs. The data could have originated anywhere (mostly the internet), Nachiket Deshpande
must fulfill.
and using it without permission can result in copyright violations. This Whole Time Director and COO,

Gen AI uses multi-modal large language models (MLLMs) to

September, 17 authors and the Authors Guild in the US sued OpenAI LTIMindtree
for copyright infringement, claiming that OpenAI used the authors’
understand human language and for self-supervised learning.
work to train its AI tools without permission4. Designer and educator
Algorithms, neural networks, and deep learning methodologies
Steven Zapata, who is fighting to protect artists’ rights, says, “The
are then used over this model to generate new text, summarize
performance of the model would not be possible without all of the
documents, carry out translations, create code, conduct chats, and
data fed into it – much of it copyrighted.”5
produce music, video, and images that did not exist before. This
process is not without gray areas, bringing common ethical principles
For now, the most widely felt ethical problems revolve around
under the crosshairs of business. These ethical issues concern
using biased or false information as input, data laundering or using
data provenance and bias, copyright violations, transparency,
someone else’s data to manufacture your content to run your systems
accountability, and data privacy.
and applications, and passing off Gen AI content as your own.

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 40
Generative AI Adoption | The Lessons from Early Adopters

60% of the organizations that had extensively adopted Gen AI across endanger their privacy or safety.
multiple functions, or the entire organization said they regularly
monitored and evaluated AI systems for potential biases and took Organizations will do well to consider the early creation of a body
corrective action where needed. Those with moderate adoption of such as the Department of Digital Trust with a full-time Digital Ethics
the technology (67 %) were also doing likewise. Across the surveyed Officer at its head. Deploying Gen AI cannot be considered successful
group, 79% regularly audited their usage of Gen AI. These leaders until a structured approach to ethics is in place.
and early adopters tell us a story: If standards of safety, reliability,
security, and ethics are not maintained, there will be trouble ahead;
there will be a loss of trust. Besides brand erosion, legal penalties
may be expensive.

Using generative AI to advance business and the cost of creating

ethical policies go hand in hand. Organizations that solve ethical
challenges will move ahead with confidence. They will engage
AI practitioners and researchers to help build models that filter
misinformation; they will use ethically sourced and non-biased 1
Rachel Botsman: An Economy of Trust, Mike Sturm, NORDIC Business Report,
data for training their models; the usage of these models will be February 4, 2018: https://www.nbforum.com/nbreport/rachel-botsman-economy-trust/

controlled; regulatory bodies will be welcomed to examine their 2

Good News for Disgraced Companies: You Can Regain Trust, Lane Lambert, Working
systems; and these organizations will remain transparent to their Knowledge, Harvard Business School, July 7, 2021: https://hbswk.hbs.edu/item/good-
customers, clearly providing indicators of where Gen AI is used in news-for-disgraced-companies-you-can-regain-trust

their processes. 3
ChatGPT: US lawyer admits using AI for case research, Kathryn Armstrong, BBC
News, May 27, 2023: https://www.bbc.com/news/world-us-canada-65735769
Businesses must create strategies – backed by talent – to build trust
4
George R.R. Martin Among 17 Authors Suing OpenAI for Copyright Infringement,
models when using Gen AI. They must have safeguards for the use
Charlie Wacholz, IGN India, September 21, 2023: https://in.ign.com/news/194577/
of data and their self-learning algorithms. They must create processes george-rr-martin-among-17-authors-suing-openai-for-copyright-infringement
that identify and stop the use of misinformation. They must 5
The End of Art: An Argument Against Image AIs, Steven Zapata Art, October 18,
proactively inform customers and users of flaws and breaches that
2022: https://www.youtube.com/watch?v=tjSxFAGP9Ss&t=1831s

Key Findings 1 | Key Findings 2 | Key Findings 3 | Key Findings 4 | Key Findings 5 | Key Findings 6 41
Generative AI Adoption | The Lessons from Early Adopters

About this research

In July and August 2023, a survey was conducted by LTIMindtree, which included 450
decision-makers from organizations with annual revenues exceeding $250 million,
focusing on Gen AI adoption. Respondents were evenly split between the United States
and Europe, with 18% in the Nordics. Of these organizations, 85% were actively using
Gen AI, with 32% having limited usage and 53% moderate to extensive adoption.

The study encompassed various sectors, including ‘Travel, Transport and hospitality,’
‘Banking, Financial Services, and insurance,’ ‘Retail and Consumer Packaged Goods
(CPG),’ ‘Manufacturing, Energy and utilities, Oil and gas,’ ‘Communications, Media and
technology,’ and ‘Healthcare and Lifesciences.’ Respondents held senior positions like
Head of IT, Director of Strategy, Head of Finance, and Director of Digital. The survey
employed a phone-to-web methodology, with respondents initially contacted via phone
and later completed the survey online at their convenience.

42
About LTIMindtree

LTIMindtree is a global technology consulting and digital solutions company that enables enterprises across industries to reimagine business models, accelerate innovation, and maximize growth by harnessing
digital technologies. As a digital transformation partner to more than 700 clients, LTIMindtree brings extensive domain and technology expertise to help drive superior competitive differentiation, customer
experiences, and business outcomes in a converging world. Powered by 83,000+ talented and entrepreneurial professionals across more than 30 countries, LTIMindtree — a Larsen & Toubro Group company —
combines the industry-acclaimed strengths of erstwhile Larsen and Toubro Infotech and Mindtree in solving the most complex business challenges and delivering transformation at scale. For more information,
please visit https://www.ltimindtree.com/.
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