EY: CxOs ramping genAI budgets, skimp on data foundation

CxOs are racing to invest in generative AI but skimping on the data foundation needed to execute, according to an Ernst & Young (EY) survey.

EY's AI Pulse Survey, based on 500 US senior leader respondents, highlights the generative AI enterprise conundrum. Here's a look at some of the moving parts.

Among companies already investing in AI, the number of companies investing $10 million will roughly double from 16% to 30% in the next year.

• But 36% of senior leaders say they're investing in data infrastructure at scale.
• And 34% said they are building on an AI governance framework.
• 37% of senior leaders said their organizations are training and upskilling employees on AI at scale.

These moving parts highlight how some enterprises may be headed to a crap in, crap out wall if they jump into AI without a strong data game.

GenAI’s prioritization phase: Enterprises wading through thousands of use cases

Nevertheless, EY found that CxOs are doubling down on generative AI. Three-quarters of executives said their firms are seeing positive returns across business functions. Indeed, 77% said they were seeing operational efficiencies, 74% saw employee productivity gains and 72% saw improved customer satisfaction.

Other items from the survey:

• Companies investing 5% or more of total budgets on AI are seeing more returns.
• 50% of senior leaders say they will dedicate 25% or more of total budgets toward AI investments.
• 54% of CxOs investing in AI said their organizations are investing in ethical AI over the next year.

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