Managing Director & Senior Partner
Paris
By Nicolas de Bellefonds, Tauseef Charanya, Marc Roman Franke, Jessica Apotheker, Patrick Forth, Michael Grebe, Amanda Luther, Romain de Laubier, Vladimir Lukic, Mary Martin, Clemens Nopp, and Joe Sassine
After all the hype over artificial intelligence (AI), the value is hard to find. CEOs have authorized investments, hired talent, and launched pilots—but only 22% of companies have advanced beyond the proof-of-concept stage to generate some value, and only 4% are creating substantial value, according to new BCG research.
Our new report yields important insights into what AI leaders are doing to drive real value from the technology, where others fall short, where the value is coming from, how individual sectors are performing, and how companies can change their own AI trajectories.
When it comes to AI, including generative AI (GenAI), companies across all sectors fall into four categories that range from not doing much (25%) to still focusing on proof of concepts (49%) to scaling value (22%) to operating value engines (4%). Companies in the latter two categories—the leaders—are not exclusively digital natives. More than half of the companies in the leader categories are incumbents that have strengthened their capabilities and are using them to drive greater productivity, increased revenue, and even competitive advantage.
Leaders differentiate themselves from other companies in six ways:
Read Chapter 1, including examples of how leaders are using AI to innovate and outperform the competition.
Leaders expect to generate significant value—45% more in cost reduction and 60% more in revenue growth than other firms. They expect their RoI from AI initiatives in 2024 to more than double what other companies expect from theirs.
Leaders are generating 62% of the value of AI in core business processes. (See the exhibit .) They are also reaping success across multiple functions. We look at where companies from different sectors are achieving positive results from AI across a wide range of functions, from customer service to R&D to operations and procurement.
Read Chapter 2, including our assessment of value in core business processes.
Most companies need an effective action plan to create value from AI. Leaders point the way by following a seven-step playbook:
Read Chapter 3 on how you can maximize value from AI, regardless of where your company stands today.
ABOUT BOSTON CONSULTING GROUP
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.
Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.
© Boston Consulting Group 2024. All rights reserved.
For information or permission to reprint, please contact BCG at permissions@bcg.com. To find the latest BCG content and register to receive e-alerts on this topic or others, please visit bcg.com. Follow Boston Consulting Group on Facebook and X (formerly Twitter).