Intelligent CIO Africa Issue 87 | Page 22

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Africa ’ s GenAI winners are upskilling and vigilant about costs

Generative AI , GenAI exploded into the public consciousness in 2023 , promising to transform the way business functions . Despite the potential , however , leaders are struggling to convert hype into reality . According to a new report by Boston Consulting Group , BCG , 66 % of executives are ambivalent or outright dissatisfied with their organisation ’ s progress on AI and GenAI so far , citing three primary reasons for their dissatisfaction : a lack of talent and skills , 62 %, an unclear AI and GenAI roadmap and investment priorities , 47 %, and absence of strategy regarding responsible AI and GenAI , 42 %. investments in 2024 , an 11-point jump from 2023 , and even more , 85 % plan to increase their spending on AI and GenAI . 54 % of leaders already expect AI to provide cost savings this year , primarily through productivity gains in operations , customer service , and IT .

Generative AI is radically reshaping businesses . Leading companies on the GenAI front are planning to realise up to $ 1 billion in productivity gains , and they are already looking at ways to reinvest into new business models and growth . This is a second chance for companies who missed the first AI wave .
This is the year to turn GenAI ’ s promise into tangible business success . Almost every CEO , has experienced a steep learning curve with GenAI . When technology is changing so quickly , it can be tempting to wait and see where things land . But with GenAI , the early winners are experimenting , learning , and building at scale .
The report , titled BCG AI Radar : From Potential to Profit with GenAI , is based on a survey of 1,406 C-level executives in 50 markets and 14 industries . 71 % of executives surveyed say they plan to increase tech
Although a small percentage of companies are already reaping the rewards of AI and GenAI , others are either playing catch up or standing on the sidelines . More than 60 % of executives surveyed say their firms are still waiting to see how AI-specific regulations develop , and just 6 % of companies have trained more than 25 % of their people on GenAI tools so far .
According to the report , winning companies acknowledge GenAI ’ s permanence and recognise its
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