The number of businesses that are becoming leaders in artificial intelligence (AI) remains low, according to a new report from Kearney, a global management consulting firm. The company released its 2024 Global AI Assessment last week which reveals that just 4 percent of global businesses qualify as “leaders” in AI and analytics, including in their approach to Generative AI (GenAI).

The report confirms that businesses are not only aware of how big data, AI and analytics will impact revenue generation and enhance business strategies, but are also investing to stay ahead of the curve.

New data finds that 77 percent of organizations anticipate that GenAI will improve customer experience. In comparison, 76 percent believe it will boost future revenue by making processes more efficient, helping organizations make better decisions. 

Following the survey of more than 1,000 leaders from 12 industries and 25 countries, global companies report they have increased their GenAI budgets by 22 percent in the past year. GenAI now constitutes more than a quarter of companies’ total data and analytics budgets.

Despite more businesses integrating AI into their processes, many companies report they are struggling to keep pace. A third of businesses said they have not yet started implementing GenAI technologies, or identified use cases. Meanwhile, 51 percent of companies report they have immature AI and analytics capabilities.

"These findings reveal a critical divide,” said Kearney partner Bharath Thota.

“Many businesses are lagging behind, stuck with immature AI capabilities, struggling with disjointed data and missing out on its benefits as a result. It's time for these companies to act—falling behind is not an option in this fast-evolving landscape.” 

The survey also found that most companies still lack the AI and analytics capabilities needed for meaningful results, with 45 percent of respondents noting their business has a lack of technical expertise as a major barrier to GenAI adoption. This leaves a large portion of businesses unable to fully leverage AI's advantages.

Experts at Kearney are still encouraged by the level of adoption. Survey data revealed that 49 percent of companies enjoy more mature AI and analytics capabilities.

"AI will not replace humans, but it will fundamentally change the way we work, promising a revolution greater than the internet,” said Kearney partner Ramyani. “But remember, this is like 1995, not 2005; we are at the start of the AI journey, and like the early years of the internet, we must be data-informed, leveraging human creativity to expand AI's capabilities.” 

Basu continued, "AI adoption requires a cultural shift toward experimentation. Companies need to prioritize agility, embrace failures and concentrate on practical, real-time results to adapt and sustain growth. Now, with GenAI taking AI to the next level, the opportunities for companies to leverage data to drive innovation and competitive advantage are virtually endless."