Generative AI adoption ramped up in 2024; accelerates as businesses scale up

Generative AI is gaining momentum in 2024, with nearly one-third of organisations now deploying it in production, as per a recent Enterprise Strategy Group (ESG) survey. Involving over 800 IT and business leaders, the survey highlights the rise of generative AI applications in software development and IT operations, as organisations seek productivity and efficiency gains through automation.

According to ESG, enterprise AI budgets have surged as companies gain confidence in AI’s ROI and race to keep pace with competitors. This shift marks a contrast from last year when only 18% of organisations had moved generative AI from pilot to production. Now, nearly all survey respondents reported an increase in generative AI use within their companies.

The survey also reveals that generative AI has so far thrived primarily in technical fields where structured data, like codebases and performance logs, can support faster integration and automation. For example, developers leverage AI to streamline code-writing and testing, while IT teams report success with automated ticket triaging and incident response. Meanwhile, less technical areas, like sales and marketing, face greater challenges with subjective data and brand-specific tasks.

Challenges to further adoption remain. Forty-one percent of respondents reported difficulties in finding skilled AI professionals, while others cite data quality and regulatory compliance as significant hurdles. Many organisations are investing in infrastructure modernization, with 65% saying updates are needed to support generative AI applications. Heightened concerns about privacy and compliance with new regulations, like the EU AI Act, have also emerged.

As businesses continue scaling AI, navigating the regulatory landscape and addressing data quality will be critical to maintaining AI momentum in the coming year.