GenAI Early Adopters See High Returns
South Korean corporates see a 41 percent return on investment, while those in Japan get 30 percent.
The icons of ChatGPT and its generative brethren have become a common sight on corporate laptops and consumer tablets. However, no one has yet been able to quantify the exact metrics of their success – or lack of it.
A report released by AI data cloud company Snowflake on Wednesday looks to change that.
Early Adopters Shine
Titled the «Radical ROI of Generative AI», it maintains that early adopters of this new tech have done best.
According to them, 92 percent of those who got in early say their investments are already «paying for themselves», and 98 percent of the report's respondents are planning on investing more this year alone.
Good Data
Snowflake received responses from 1,900 business and IT leaders in nine different countries already actively using AI for one or more so-called use cases.
They maintain that although it has only been a few years since ChatGPT first came onto the scene, there is a key fundamental that has to be met to ensure success: good quality data.
Significant Challenges
«Despite this widespread recognition of data's importance — with 71 percent of respondents acknowledging that effective model training and fine-tuning requires multi-terabytes of data — significant challenges persist in making this data AI-ready,» Snowflake indicated.
Still, the returns are shaping up to be something that nobody can easily ignore, the AI data cloud company indicates.
South Korean Leadership
In South Korea, respondents are already seeing a 41 percent return on their investments, or $1.41 coming back based on each dollar spent. The country also is far along the development path by employing mature AI use cases and having the highest use of open-source models of those surveyed (79 percent).
The second respondent in the region, Japan, saw a lagging return of 30 percent, the lowest among those polled, as organizations there generally had different objectives for AI, using it mostly to directly help in cutting costs and less on customer service and financial performance.
The Oceanic Advantage
Australia and New Zealand, however, in neighboring Oceania, led all the countries surveyed by posting returns of 44 percent, although they tended to use AI to focus on improving customer satisfaction rates and less on internal matters and processes.
Many of the return numbers are likely to be echoed in the financial industry, which is probably a net positive for the institutions that are already leveraging those kinds of tools, something that finews.asia has commented on at length.
Prompt War
In contrast, many of the largest GenAI providers are based in the US or China (as pictured above), and the world has become a dramatically different place than it was even a few months ago, politically and economically speaking.
Given the haphazard nature of Trump 2.0’s economic measures and the rapid, albeit chaotic, unwinding of the postwar international order, let’s just hope that no one gets the bright idea of levying tariffs based on the number of prompts made. That could, at the very minimum, cut into those already very respectable return numbers.
