90% of CEOs are Waiting for GenAI to Move On

• A brand new BCG survey of over 1,400 C-Suite executives in 50 markets reveals that whereas 66% of world leaders are ambivalent or dissatisfied with their corporations’ AI and GenAI progress, the Middle East displays a contrasting pattern in adopting these applied sciences.
• Middle East Surpasses Global Trends in AI and GenAI with a 93% Increase in Investments for 2024.
• Region Leads in Productivity Gains from AI and GenAI, with 61% of Executives Anticipating Over 10% Improvement.

GenAI burst into the general public consciousness in 2023, promising to revolutionize enterprise operations. The Middle East reveals a definite method to AI and GenAI adoption, differing notably from broader world tendencies. According to the Boston Consulting Group (BCG) survey, whereas 66% of world leaders report dissatisfaction or ambivalence concerning their AI and GenAI progress, the state of affairs within the Middle East is totally different. 61% of executives anticipate over 10% productiveness positive aspects from AI and GenAI in 2024.  54% of Middle Eastern Executives point out that their AI/GenAI capabilities are at present centered on sensible software, going past restricted experimentation to embody extra complete and scaled initiatives.

“The Middle East is making significant progress in the field of GenAI by developing essential AI capabilities and recognizing the importance of data as a key asset for immediate and strategic value,” says David Panhans, Managing Director and Senior Partner at Boston Consulting Group. “The region’s focus on leveraging data for AI and GenAI solutions to various business challenges, combined with a digital-first, data-driven mindset, sets the region apart in GenAI and enables substantial productivity gains and innovation.”

The BCG AI Radar: From Potential to Profit with GenAI report relies on a survey of 1,406 C-level executives in 50 markets and 14 industries. Seventy-one % of executives surveyed say they plan to extend tech investments in 2024—an 11-point bounce from 2023—and much more (85%) plan to extend their spending on AI and GenAI. In workforce growth, the Middle East is main in upskilling efforts associated to GenAI. However, regardless of this progress, there’s room for enchancment, as at present, solely 11% of Middle East executives report that greater than 1 / 4 of their staff have acquired coaching in GenAI instruments. This signifies a centered but ongoing effort within the area to equip the workforce with the mandatory expertise for the AI panorama.

“As the Middle East continues to excel in AI and GenAI, a key focus is on building the necessary AI muscle to support and advance this area,” states Mark Zaleski, Managing Director and Partner at BCG X. “Our region is committed to advancing technology and developing our workforce through comprehensive change management, starting with leadership. We have made significant progress in training our workforce in GenAI, but the journey towards achieving comprehensive AI proficiency is ongoing. We believe our commitment to developing technology and human capital is critical.”

This Is Not the Time to Wait and See   

Although a small proportion of corporations are already reaping the rewards of AI and GenAI, others are both taking part in catch up or standing on the sidelines. More than 60% of executives surveyed say their companies are nonetheless ready to see how AI-specific laws develop, and simply 6% of corporations have educated greater than 25% of their individuals on GenAI instruments thus far. 

According to the report, “winning” corporations acknowledge GenAI’s permanence and acknowledge its potential for each enhanced productiveness and topline progress. It outlines a number of traits that set the winners other than observers, together with: 

• Winners make investments for productiveness and top-line progress. Organizations that plan to speculate greater than $50 million in AI and GenAI this yr are 1.3 occasions extra prone to see value financial savings in 2024—and 1.5 occasions extra prone to obtain greater than 10% in value financial savings. 
• Winners are systematically upskilling. Twenty-one % of organizations spending upward of $50 million on AI and GenAI this yr have already educated greater than 1 / 4 of their individuals. 
• Winners are vigilant about GenAI value of use. Cost of use, which has critical long-term implications, will not be commanding the eye it ought to. Only 19% of these surveyed think about value the highest concern when selecting an AI and GenAI resolution. 
• Winners construct intentional relationships. Only 3% of executives think about preexisting partnerships a precedence when in search of AI options. 
• Winners implement accountable AI (RAI) rules. Of the businesses surveyed which can be investing greater than $50 million in AI in 2024, 27% put the CEO answerable for their RAI technique (versus 14% total). 

“In the Middle East, AI can redefine company operations, creating significant value for individual businesses and the broader economies. This shift towards AI-driven transformation demands a ‘Value-first’ approach and ’Tech + Change Management’ mindset to succeed across various sectors,” says Robert Xu, Managing Director and Partner at BCG X. “Integrating GenAI into our business ecosystems will not only improve operational efficiencies and bring topline impact but also encourage the development of new business models, fostering economic growth and regional development.”