Generative AI Adoption Surges: New Study by AI at Wharton Reveals Doubling of AI Use Across Key Business Functions

Key Findings:

• Nearly 3 in 4 leaders (72%) report using Gen AI at least once a week, up from 37% in 2023.

• AI adoption in Marketing and Sales tripled, from 20% in 2023 to 62% in 2024, with AI usage in Operations, HR, Purchasing, and Procurement doubling.

• Spending on AI has increased by 130%, with 72% of companies planning further investment in 2025.

• 90% of leaders agree that AI enhances employee skills, up from 80% in 2023, while concerns about job replacement have eased, dropping from 75% to 72%.

A new study by AI at Wharton, a research center at the Wharton School of the University of Pennsylvania, in collaboration with GBK Collective, reveals a dramatic rise in generative AI (Gen AI) adoption across key business functions, as companies move from cautious exploration to rapid integration. The report, “Growing Up: Navigating Gen AI’s Early Years,” surveyed more than 800 enterprise decision-makers across the U.S., highlighting the rapid evolution of AI usage across business functions, even as they navigate challenges around return on investment (ROI) and organizational transformation.

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“Generative AI has rapidly evolved from a tool of experimentation to a core driver of business transformation”

“Generative AI has rapidly evolved from a tool of experimentation to a core driver of business transformation,” said Stefano Puntoni, Sebastian S. Kresge Professor of Marketing at the Wharton School and Co-Director of AI at Wharton. “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.”

Growing Up: Navigating Gen AI’s Early Years

In 2023, Gen AI was still in its infancy. Only 37% of respondents were using it weekly, and while 78% of leaders expected Gen AI to impact core functions like data analysis and research, usage remained largely experimental. Companies were just beginning to navigate early challenges, with 57% anticipating a slowdown in Gen AI spending growth as they sought measurable returns on their investments.

Fast-forward to 2024, and the landscape has shifted significantly. Nearly three in four leaders (72%) now use Gen AI weekly, with companies reporting a 130% increase in AI spending since 2023. The focus has moved from initial curiosity to practical application, and 55% of organizations are now actively using Gen AI across multiple business functions, such as coding, data analysis, idea generation, brainstorming, content creation, and legal contract generation. Despite this progress, challenges around accuracy, privacy, team integration, and ethics persist, though these concerns have slightly eased compared to last year. Notably, 58% rated Gen AI’s performance as ‘great.’

“This transition from experimentation to widespread usage marks a pivotal moment,” continued Puntoni. “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.”

AI Adoption Spikes Across Functions

The 2024 study revealed that AI adoption has spiked dramatically across multiple business functions. While IT remains a leader in AI usage, other departments are quickly catching up. In Marketing and Sales, AI adoption tripled from 20% in 2023 to 62% in 2024. Operations saw usage more than double, rising from 16% to 50%, usage growing from 40% to 78% in Product Development and surging from 50% to 94% in Procurement.

“Gen AI is proving transformative across a wide range of business areas,” said Jeremy Korst, Partner with GBK Collective, a leading marketing strategy, consumer behavior and analytics consultancy that partnered with AI at Wharton on the study. “What we’re seeing is not just a shift in how companies use AI, but a deepening commitment to integrating AI across multiple functions to drive efficiency and innovation.”

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Evolving Employee Perception on Impact of AI

As AI adoption accelerates, employee perceptions have also evolved. 90% of leaders in 2024 agreed that AI enhances employee skills, up from 80% in 2023. Meanwhile, concerns about AI replacing human skills have slightly decreased, with 72% of leaders expressing concern about job replacement, down from 75% in the previous year.

“There’s a clear shift in mindset,” said Puntoni. “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.”

Looking Ahead: 2025 and Beyond

As Gen AI matures, companies are setting the stage for what’s next. With 72% of respondents planning to increase AI spending in 2025, businesses are also expanding their AI teams, with nearly half of organizations hiring Chief AI Officers (CAIOs) to lead strategic initiatives. Growth will depend on the ability to demonstrate measurable returns, as companies increasingly focus on refining their AI strategies and integrating AI across functions to deliver impact.

“We continue to see investment in Gen AI grow across industries, but ensuring measurable ROI is now a key factor for sustained impact,” said Mary Purk, Executive Director, AI at Wharton. “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.”

“The challenge for enterprises going forward will be applying Gen AI responsibly with better data,” said Korst. “Governance, security, ethics, and training around new LLM 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.”

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