Gen AI has attracted more than $1.37 billion in venture capital in 2022

Overnight, generative artificial intelligence (gen AI) has become a global sensation. Predictions of its potential impact on society, employment, politics, culture, and business fill the media and the internet. Business leaders are intrigued by the possibilities and are convinced that generative AI is truly a game-changer.

KPMG launched its 2023 KPMG Generative AI Survey in March to look beyond the hype and understand how enterprises can make progress toward real, meaningful generative AI results. The chief finding: Across industries and functions, more than three-quarters of executives (77%) see generative AI as by far the most impactful emerging technology they will use, and 71% plan to implement their first generative AI solution within two years.

The report is based on survey data from 300 executives from across industries and geographies, as well as the insights of KPMG advisers in artificial intelligence, technology enablement, strategy, and risk management. With the potential to be used across a variety of business use cases to save time, money, and effort, new applications of generative AI are being researched, developed, and adopted at an astonishing pace. Generative AI technology attracted more than $1.37 billion in venture capital dollars in 2022 — more than was invested in the previous five years combined.

Robust growth is expected to continue as big tech companies like Microsoft, Alphabet, and Amazon, as well as newer generative AI startups like OpenAI, Synthesia, and Jasper AI continue to fund innovation and push the envelope.

Generative AI stands apart

Business leaders are highly interested in the capabilities and opportunities generative AI can unleash and believe it has the potential to reshape how they interact with customers, run their workplaces, and grow their revenue. Regardless of sector or function, 77 percent rank generative AI as the emerging technology that will have the biggest impact on the business over the next three to five years, ahead of other trending technological capabilities like advanced robotics, quantum computing, augmented reality/virtual reality (AR/VR), 5G, and blockchain. Sixty-four percent of respondents expect the impact of generative AI on their organization in that timeframe to be medium.

Our survey shows that corporate leaders perceive generative AI as a capability that could give companies an edge in these crucial strategic and operational areas. According to our research, more than 60 percent of respondents view generative AI as an opportunity to drive greater efficiencies, grow market share and revenue, and gain a competitive edge.

Businesses recognise generative AI’s potential

Generative AI technology is amid a meteoric rise and is now reaching an inflection point. The market has matured to the point that large companies in basically every industry can no longer ignore it and are now spurring into action.

While only nine per cent have already adopted generative AI, a large majority of enterprises (71%) plan to implement their first generative AI solution within two years or less 

When asked which application areas will be most relevant at their companies, automating routine tasks (31 percent) and language generation (24%) top the list. While prioritisation varies by sector and function, the overall value potential for applying generative AI seems to be highest in areas where bots can handle routine tasks, freeing up humans to focus on skill-driven activities. For instance, chatbots and virtual assistants can handle routine IT help desk tasks and inquiries, using text created automatically, while trained IT professionals help users solve more complex technical problems.

Generative AI changes the game. Processes do not need to be broken down because generative AI tools can apply the large variety of human knowledge, experiences, and common sense embedded into their models to fill the gaps. This creates an immense opportunity to apply and scale the technology across real-world, enterprise-wide business processes.