Businesses Rush to Unlock Generative AI Value Before Losing Competitive Ground

Businesses Rush to Unlock Generative AI Value Before Losing Competitive Ground

A new Harvard Business Review study reveals that while 83% of executives believe companies will fall behind without generative AI, only 48% feel their organizations are truly ready to adopt it. This gap between urgency and preparedness highlights the critical need for strategic planning in the generative AI revolution.

The Stakes Are Clear: Adapt or Fall Behind

According to the HBR Analytic Services survey of 257 global executives, the pressure to implement generative AI is mounting. Goldman Sachs forecasts a $7 trillion increase in global GDP and a 1.5 percentage point productivity boost over the next decade from AI adoption.

"Gen AI is not optional," says Abid Rahman, senior vice president of innovation at Eversana. "Every industry and every company should be looking at gen AI. If they don't, they're going to fall behind."

Key Implementation Barriers Organizations Face

Risk Concerns Top the List: 56% of respondents cite potential ethical, legal, and cybersecurity risks as the primary barrier to scaling AI adoption.

Lack of Clear Strategy: Half of organizations struggle without a clear roadmap for implementation, while 46% lack proper guidelines for AI governance.

Preparedness Gap: Between 32% and 54% of organizations feel prepared across key areas like employee skills, technology infrastructure, and risk mitigation.

Organizations Finding Success Through Strategic Approaches

Companies already seeing results focus on three critical elements:

• Establishing Clear Guidelines - 53% of organizations prioritize developing governance frameworks for AI use
• Managing Change Effectively - Companies like Canva and Restworld invest heavily in employee training and cultural adaptation
• Building Feedback Loops - Successful implementations require continuous evaluation and refinement

Early Results Show Promise Despite Challenges

Organizations implementing generative AI report significant benefits:

• Productivity Gains: 63% of surveyed companies aim to achieve greater organizational productivity
• Cost Savings: Restworld reports potential 20% cost reductions by automating 10,000-12,000 monthly conversations
• Enhanced Innovation: Canva has generated over 1.2 billion images through AI-powered design tools

The survey reveals that 66% of respondents believe AI benefits outweigh the risks, suggesting growing confidence in the technology's potential despite implementation challenges.

🔗 Read the full report: Realizing the Generative AI Opportunity