Customised Generative AI Emerges as the Key to Operational Success
Generative AI (GenAI) is revolutionizing how Chief Operating Officers (COOs) at billion-dollar enterprises approach their operations. A recent PYMNTS Intelligence report, titled “COOs Find the Key for a Positive ROI on GenAI: Customization”, reveals that 77% of COOs leveraging GenAI report positive returns on investment (ROI). The report highlights the growing importance of customized GenAI tools, which are outperforming standard solutions by providing targeted, efficient results tailored to organizational needs.
From bolstering cybersecurity to streamlining production management, COOs are increasingly turning to GenAI for handling high-stakes, complex functions. Many executives view the technology as a game-changing tool, with expectations of transformative benefits across operations by the end of the decade.
Expanding Use Cases: Generative AI’s Role in Critical Business Functions
Generative AI is quickly becoming a staple in essential operations. Between May and August, the use of GenAI for production monitoring increased from 32% to 57%, demonstrating its value in optimizing workflows and providing actionable feedback. Similarly, its application in automated cybersecurity systems grew exponentially—from 17% in May to 55% in August—highlighting its ability to address evolving cyber threats and manage complex security challenges.
Beyond these critical functions, GenAI is also proving useful in routine operations. For example, its adoption for data visualization jumped from 53% in May to 67% in August, reflecting its growing importance in enabling data-driven decision-making and improving operational efficiency across departments.
Custom AI Solutions Outperform Standard Tools
While off-the-shelf Generative AI tools like large language models (LLMs) remain popular, the report shows that customized GenAI solutions are delivering far greater returns. Among companies using tailored GenAI tools, 46% report highly positive ROI, compared to just 22% of those relying on generic LLMs.
This sharp contrast underscores the value of customization in maximizing GenAI’s potential. Custom tools, designed to meet the unique needs of an organization, align closely with operational objectives and provide more precise solutions. Conversely, generic models often lack the specificity needed to address complex challenges faced by large enterprises.
As a result, COOs are increasingly investing in bespoke AI systems that deliver targeted value, improve efficiency, and position their companies for long-term success.
Challenges Persist Amid Growing Optimism
While the benefits of GenAI are clear, fully integrating the technology into large organizations remains a challenge. COOs project that GenAI will be fully integrated into their operations by 2030. Encouragingly, the expected timeline for achieving positive ROI has shortened, with most executives now anticipating substantial returns within 5.6 years—down from 7.8 years in May.
However, roadblocks persist. The percentage of COOs citing integration challenges has risen from 33% in May to 48% in August. Internal resistance to implementation has also grown, with 42% of COOs reporting pushback, up from 20% earlier in the year. Additionally, short-term ROI concerns have doubled, with 53% of COOs now identifying this as a key issue, compared to 25% in May.
These challenges illustrate the complexities of adopting advanced technology at scale. Despite this, COOs remain optimistic, focusing on strategic planning, resource allocation, and customized tools to navigate hurdles and unlock GenAI’s full potential.
Generative AI is redefining operational strategies for billion-dollar enterprises, from improving cybersecurity to enhancing production efficiency. As adoption expands and organizations address integration challenges, the technology is poised to become a cornerstone of business innovation and success by 2030.
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