With GenAI, there is a dramatic difference between companies that are digital
at the core and have the tech stacks ready to work, and companies
that are going through rewiring and rethinking of their tech stacks.
The companies that are tech-enabled have,
in the last six months, moved even further ahead.
They had the infrastructure.
They had the data.
And they've widened the gap.
For them, GenAI has immediate benefits to embed into co-development,
enabling release cycles that are 50 to 60 percent faster, automating helpdesk support
or synthetically generating new code
that can be run through cybersecurity scenarios.
On the other extreme, for the companies that are starting to digitize,
GenAI is an opportunity to catch up.
It can be used to refactor applications,
migrate systems to the cloud faster and clean data – their biggest bottlenecks on this journey.
For example, if I'm running a supply chain in a pharma company,
today, I probably need to tap into 10 to 12 different systems
and custom-run reports out of each of them.
Someone has to normalize all the data, clean it,
and it's at least a week-long process.
If I use GenAI and infuse into that process, and I also migrate into cloud
and the data is now usable and clean, I can have that view in real-time.
And, it allows businesses to get from historical reflections
into much more proactive conversations.
And then finally, there are companies that are currently in a swirl over GenAI.
Those are currently in the middle of performance.
They're asking questions like, what should we use GenAI for?
How should we reprioritize all the AI efforts we have?
And, what do we have in the pipeline?
Can the same person be in charge
or do we now need a new leader that is going to be driving GenAI efforts?
But all that aside, overall, when AI and GenAI are deployed at scale,
we're seeing a 20 to 40 percent reduction in technology costs,
and at least 5 to 10 percent improvements in various functional efficiencies.
Now, in the short term, CIOs are going to worry much more because of GenAI.
There are new security questions that are popping up.
They are also sanity checking the outputs coming from these tools.
They're also making sure that it's high-quality output
that is now being used in real-time environments.
But down the line, GenAI is going to make the cost and speed
of these shifts into modern technology vanish to a large extent.