Organizations are increasingly adopting Gen AI in business functions, according to research – with its use in operations, purchasing and procurement doubling since 2023.
This is shown by the “Growing Up: Navigating Gen AI’s Early Years” study by The Wharton School of the University of Pennsylvania, which surveyed more than 800 enterprise decision-makers across the US.
Stefano Puntoni, Sebastian S Kresge Professor of Marketing and Co-Director of AI at the Wharton School, said in a statement: “Generative AI has rapidly evolved from a tool of experimentation to a core driver of business transformation.”
“Companies are no longer just exploring AI’s potential – they are embedding it into their strategies to scale growth, streamline operations, and enhance decision-making. The novelty phase is over. We’re now starting to see the integration of AI into various business processes, as companies look to unlock its long term value across the enterprise.”
The study, which was carried out in collaboration with GBK Collective, found that:
- Nearly 3 in 4 Leaders (72 percent) report using Gen AI at least once a week, up from 37 percent in 2023.
- AI adoption in Marketing and Sales tripled, from 20 percent in 2023 to 62 percent in 2024, with AI usage in Operations, HR, Purchasing, and Procurement doubling.
- Spending on AI has increased by 130 percent, with 72 percent of companies planning further investment in 2025.
- 90 percent of leaders agree that AI enhances employee skills, up from 80 percent in 2023, while concerns about job replacement have eased, dropping from 75 percent to 72 percent.
The surveyed businesses are now actively using Gen AI across multiple functions, such as coding, data analysis, idea generation, brainstorming, content creation, and legal contract generation. Nearly half of organizations are hiring Chief AI Officers (CAIOs) to lead strategic initiatives. Such CAIOs are now in 46 percent of companies. Challenges around accuracy, privacy, team integration, and ethics persist, though these concerns have slightly eased compared to last year.
90 percent of leaders in 2024 agreed that AI enhances employee skills, up from 80 percent in 2023. Concerns about AI replacing human skills have slightly decreased.
A banking leader told the study surveyors: “The biggest impact of Gen AI will be to augment my capabilities. [It will] automate routine tasks and provide 24/7 support to our customers, freeing me up to focus on [customer] empathy and more complex problem-solving.”
Puntoni said: “There’s a clear shift in mindset. Leaders are increasingly viewing AI as a tool to augment employee capabilities rather than replace them, with a focus on enhancing productivity and improving work quality.” The small percentage changes here, even though 10 percent is statistically significant, may not actually be viewed as “a clear shift in mindset” by some folks though.
Mary Purk, executive director, AI at Wharton, said: “Businesses must refine their AI strategies, not only to integrate AI across functions but also to demonstrate its value. The real competitive edge will come from those who can scale AI effectively and confidently.”
Puntoni talked of a “pivotal moment,” saying: “Companies are now leveraging AI for tangible business outcomes, but they’re also facing new challenges in governance and integration as they scale AI solutions across the enterprise.”
GBK Collective partner Jeremy Korst said: “Governance, security, ethics, and training around new LLM (Large Language Model) applications and use cases are critical. We’re only now at the start of this journey and the companies that get this right will lead the next wave of AI innovation and transformation.”
What this Wharton study predicts for IT compute, storage and networking infrastructure suppliers is that the Gen AI market for their products, particularly the inference market, is becoming stronger and will be sustained. The study found that Gen AI budgets will rise across all functional areas over the next 2 to 5 years.
As we understand it, the key need, will be an ability to show tangible value from products used in Gen AI applications, such as x percent lower cost in Gen AI-assisted purchasing compared to traditional purchasing.
Today, Gen AI receives the highest performance scores for data analysis/analytics, idea generation/brainstorming, legal contract generation, fraud detection and email generation. The study reckons that it’s in these areas where Gen AI product proliferation will most likely occur.
The study says the predicted leading AI vendors in three to five years from now will be Microsoft/Azure and Google GCP in equal first place (47 percent), with AWS third (33 percent), followed by Open AI, Apple, IBM and Meta.
