GenAI not shows impact on Profit and Loss of Enterprises, Only increases employee level productivity
- Few transformations in Business with the use of GenAI.
- Only Tech and Media industries show clear signs of structural disruption.
- Job Loss and Mass Layoffs are overrated says MIT Report.
A recent report from the MIT, About GenAI Divide in Businesses offered real situation outlook of use of generative AI in the workplace. From their surveys and analyss of 300 public implementations, things emerged as GenAI Devide. Generative AI shows meaningful structural change in only 2 of 8 major sectors. External partnerships have implementation advantage, See twice the success rate of internal builds. Budgets favor visible, top-line functions over high-ROI back office.
Most organizations fall on the wrong side of the GenAI Divide, adoption is high, but disruption is low. Seven of nine sectors show little structural change. Enterprises are piloting GenAI tools, but very few reach deployment. Generic tools like ChatGPT are widely used, but custom solutions stall due to integration complexity and lack of fit with existing workflows.
Over hyped Job loss and industry disurption
Report stated, only two industries (Tech and Media) show clear signs of structural disruption. Fears of mass layoffs are currently overblown. Instead, the impact on jobs is gradual and selective. Workforce reductions are occurring in roles that were already vulnerable to automation, such as customer service and administrative tasks.
GenAI Adoption
Enterprises are slow in adopting AI solution. Eventhough Enterprises are eager to adapt Generative AI, but transformation is rare. Surprising result uncovered is that 95% of organizations are getting zero return from genAI. Only 5% of enterprises have AI tools integrated in workflows.
GenAI has the learning gap in the work context. A major reason for the failure of enterprise AI systems is their inability to retain memory, adapt to context, and learn from feedback.
