Generative artificial intelligence (GenAI) is at an inflection point that has refocused enterprise priorities and stands to reshape the role of technology.
This is according to a newly published report, “Generative AI Outlook: From Hype to Value” that is part of S&P Global Market Intelligence’s Big Picture 2025 Outlook Report Series.
S&P Global Market Intelligence’s GenAI analysts highlight that the changes to date are only the first phase of a larger set of shifts that are driving a rethinking of the approaches to GenAI engines – large language models (LLMs), architectures and the data that feeds them.
“While investments in AI companies are surging, enterprises are running into challenges delivering on AI’s promises. Data quality and budget limitations are the leading causes of AI project failures. Greater infrastructure maturity is needed to achieve AI benefits,” says Eric Hanselman, chief analyst for industry and company data with S&P Global Market Intelligence.
Other highlights from the report include:
- According to 451 Research’s recent Voice of the Enterprise: AI & Machine Learning, Infrastructure 2024 study, 18% of organisations currently report to have Generative AI fully integrated across their organisation, a gain of 5 points in only six months.
- Results from the AI and Machine Learning (ML) study show that data quality ties with budget issues as the leading cause of AI project abandonment, followed by infrastructure performance. That’s an indication of the importance of building data management skills, which is new to many organizations.
- GenAI venture funding is also pacing at record highs, with startups securing $20-billion in capital in the first three quarters of 2024, according to data from S&P Capital IQ Pro. Hot new startups in the foundation model space led by AI pioneers have this year achieved unicorn status mere months after announcing their founding, before releasing any shippable products.