Manufacturers are slow to implement planned generative AI initiatives as concerns about accuracy skyrocket
4 mins read

Manufacturers are slow to implement planned generative AI initiatives as concerns about accuracy skyrocket

Lucidworks, Inc.Lucidworks, Inc.

Lucidworks, Inc.

Manufacturers have only implemented 20% of their planned AI initiatives, according to the second annual Gen AI study commissioned by Lucidworks.

  • Fewer than 60% of manufacturers plan to increase AI spending in 2024, down from 93% in 2023.

  • Despite slower-than-expected adoption, nearly half of manufacturers are already reporting financial benefits from AI initiatives

  • Only 1 in 4 companies across all industries have successfully implemented AI initiatives in the last 12 months

SAN FRANCISCO, July 10, 2024 (GLOBE NEWSWIRE) — Lucid’s worka leader in search and end-to-end AI solutions, today released new production discoveries from the second annual Global Benchmarking Study on Generative AI. The study gathered insights from over 2,500 leaders involved in AI technology decision-making around the world. The report examines key areas of generative AI investment and organizations’ progress in adopting generative AI.

While initial excitement about AI was high, actual implementation of planned initiatives has been slow across most industries. In 2023, more than 40% of manufacturing leaders had a positive view of AI, and 93% planned to increase investment. In 2024, only 58% planned to increase their spending. 30% feared they were falling behind the competition, and only one in five successfully implemented initiatives. Despite the slow adoption, manufacturers reported above-average cost benefits (48%).

Concerns about security, accuracy, and cost have forced most companies to slow down planned initiatives and take a more strategic approach to balancing costs and benefits. Security concerns have tripled, accuracy concerns have increased fivefold, and transparency concerns have quadrupled since 2023. Manufacturers have some of the greatest concerns about accuracy (44%) and some of the least concerns about job replacement (3%) compared to other industries.

2024 Global Benchmarking Study on Generative AI also includes the following provisions:

  • Investment slowdown: Global AI spending plans have fallen sharply, with only 63% planning to increase (down from 93% last year). US-based organizations remain above average, with 69% planning to increase AI spending.

  • Slow progress: Delayed implementation and low success rates are common, with only 25% of planned projects being fully implemented. This delay is blocking the expected return on investment, as 42% of companies have not yet experienced significant benefits from generative AI initiatives.

  • Expenditures are stabilizing: Across all organizations, 36% of leaders plan to maintain spending at current levels, up from just 6% in last year’s survey.

  • China’s Rapid Fall:Only 49% of Chinese leaders plan to increase AI spending in 2024, down dramatically from 100% in 2023.

  • LLM studies with a commercial profile dominate: Nearly eight in ten companies use commercial LLM programs, while 21% have chosen to use open source software exclusively.

  • Competition concerns: A third of enterprise leaders feel they are falling behind the competition, even though almost all of them are struggling to implement this new technology.

“While many manufacturers see the potential benefits of generative AI, challenges such as response accuracy and cost are causing them to take a more cautious approach. This is reflected in spending plans, with significantly fewer planning to increase AI investments compared to last year,” said Mike Sinoway, CEO of Lucidworks. “However, the above-average cost benefits reported in 2024 may make them more optimistic about the year ahead. B2B companies and manufacturers have much to gain if they can balance costs and risks to increase efficiency, improve the shopper experience, and reduce operating costs using generative AI.”

Download full version Generative AI Global Benchmarking Study 2024 AND accompanying arrangements focused on production today. Learn more about Lucidworks at Lucidworks.com.

About Lucidworks

Lucidworks customers are more than 2.5 times more likely to successfully implement generative AI initiatives than their competitors. The world’s largest brands, including Crate & Barrel, Lenovo, and Red Hat, rely on Lucidworks’ suite of products to power commerce, customer service, and workplace applications that delight customers and empower employees. Contact us today to develop a strategy for AI success.

CONTACT: Press Contact: Lauren Gill Escalate PR [email protected]