Organizational Investment Strategies for Generative AI
Organizational Investment Strategies for Generative AI
There is vast potential with generative AI tools and businesses are deciding how to best allocate funds for this technology. How are finance leaders beginning their organization’s Generative AI investment journeys, and what are they prioritizing?
One minute insights:
IT is the most common team receiving funding
Most respondents consider budgeting for GenAI as a medium or high priority, and expect this priority level to rise
Ethical implications and data security are the most commonly selected risks associated with GenAI
About one-third of respondents report personally using GenAI for their job function
Driven by CEO and board pressure, finance teams are experimenting with GenAI to improve growth and risk management
When it comes to GenAI usage, 43% of respondents report that their finance team is experimenting with isolated projects (28%), have integrated into some processes (9%) or are fully integrated across operations (6%).
Which of the following best describes your finance team’s approach to providing budgets for investments in GenAI tools or solutions?
Question only shown to those who answered “Yes” to the question “In your current role, do you have visibility into organizational strategy for providing budgets for generative AI (GenAI) tools or solutions?”
n = 85
Note: May not add up to 100% due to rounding
Among finance professionals whose organization’s have fully/partially integrated GenAI into their investments budget or who are experimenting with it (n=37), the top reported reason for allocating resources for GenAI tools or solutions is for risk management (47%), followed by growth (28%).
Broadly, what is the primary reason your organization is allocating resources for GenAI tools or solutions?
None of these 0% | Not sure 0%
Other response: “Efficiencies”
n = 37
Question only shown to those who answered “Experimenting with isolated projects”, “Integrated into some processes”, or “Full integrated across operations” to the question “Which of the following best describes your finance team’s approach to providing budgets for investments in GenAI tools or solutions?”
Note: May not add up to 100% due to rounding
The three most commonly selected motivators behind allocating resources for GenAI tools or solutions are the board (62%), the CEO (59%) and CFO (57%).
Who is the primary motivator behind allocating resources for GenAI tools or solutions? Select all that apply.
None of these 0%
n = 37
Question only shown to those who answered “Experimenting with isolated projects”, “Integrated into some processes”, or “Full integrated across operations” to the question “Which of the following best describes your finance team’s approach to providing budgets for investments in GenAI tools or solutions?”
IT is the most common team receiving funding and seeing an impact with GenAI, but few are utilizing GenAI for personal use in finance
49% of respondents report IT has, or will receive, funding specifically for investing in GenAI tools or solutions. 43% report finance.
What teams have received, or will receive, budget specifically for investing in GenAI tools or solutions? Select all that apply.
Product 22% | Supply chain 22% | Not sure 8% | Legal 8% | HR 0% | Other 0% | None of these 0%
Question only shown to those who answered “Experimenting with isolated projects”, “Integrated into some processes”, or “Full integrated across operations” to the question “Which of the following best describes your finance team’s approach to providing budgets for investments in GenAI tools or solutions?”
n = 37
GenAI investments in IT (24%) have the most tangible impact.
From the same list, where have GenAI investments made the most tangible impact on financial performance?
Supply chain 5% | Marketing 5% | Legal 3% | Sales 3% | HR 0% | Other 0%
Question only shown to those who answered “Experimenting with isolated projects”, “Integrated into some processes”, or “Full integrated across operations” to the question “Which of the following best describes your finance team’s approach to providing budgets for investments in GenAI tools or solutions?”
n = 37
About one-third (32%) of respondents reportedly use GenAI personally for their work functions.
Have you personally adopted GenAI for any of your work functions (i.e. Using ChatGPT to help compose an email or report)?
Note: May not add up to 100% due to rounding
n = 37
Question only shown to those who answered “Experimenting with isolated projects”, “Integrated into some processes”, or “Full integrated across operations” to the question “Which of the following best describes your finance team’s approach to providing budgets for investments in GenAI tools or solutions?”
Despite the potential negative ethical implications of GenAI, many finance teams report budget allocation is an increasing priority
Respondents cite ethical implications (70%) and data security (62%) as the most common risks associated with investing in GenAI tools or solutions
What benefits of design-led engineering have you seen in your organization? Select up to 3.
Other 0% | Not sure 0%
n = 37
Question only shown to those who answered “Experimenting with isolated projects”, “Integrated into some processes”, or “Full integrated across operations” to the question “Which of the following best describes your finance team’s approach to providing budgets for investments in GenAI tools or solutions?”
59% of respondents say allocating a budget for GenAI investments is a medium or high priority.
What is the current priority level for allocating budget for GenAI investments?
It’s our top priority 0%
Note: May not add up to 100% due to rounding
Question only shown to those who answered “Experimenting with isolated projects”, “Integrated into some processes”, or “Full integrated across operations” to the question “Which of the following best describes your finance team’s approach to providing budgets for investments in GenAI tools or solutions?”
60% say this priority level will increase slightly (49%) or strongly (11%) in the next 12 months.
How do you see this priority level changing in the next 12 months?
n = 37
Note: May not add up to 100% due to rounding
Question only shown to those who answered “Experimenting with isolated projects”, “Integrated into some processes”, or “Full integrated across operations” to the question “Which of the following best describes your finance team’s approach to providing budgets for investments in GenAI tools or solutions?”
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Respondent Breakdown
Note: May not add up to 100% due to rounding
Respondents: 85 finance Directors, VPs, and C Level professionals