New HFS Research and Tech Mahindra Report on Generative AI Adoption Finds Most Significant Risk is Doing Nothing

By Business Wire On Jul 16, 2024

90% of enterprise leaders consider GenAI a strategic priority, and essential for staying competitive.
GenAI will be integrated into IT programs within the next 12-18 months, with 39% expecting it in more than half of their IT initiatives.
Only 35% of respondents are actively implementing GenAI, 36% are working on POC or pilot stage, while 17% are still in the planning stages.
About a third of businesses currently possess a practical “doer” mindset for GenAI adoption, while the rest are still in the planning or “dreamer” stages.

HFS Research, a leading global research and analysis firm, in collaboration with Tech Mahindra, a leading technology consulting and digital solutions to global enterprises across industries, has released a report titled “Stop Dreaming and Start Doing—Your Practical and Urgent Guide to Winning with GenAI.” The study underscores the transformative potential of GenAI for businesses and offers key insights on how enterprises can shift from a visionary “dreamer” mindset to a practical, implementation-focused “doer” mindset.

“GenAI is transforming businesses by automating tasks, enhancing content creation, and boosting productivity. At Tech Mahindra, we exemplify how integrating GenAI into core operations drives profound outcomes and fosters innovation to scale at speed. This report underscores the strategic imperative for businesses to embrace GenAI and unlock limitless possibilities.”

The survey-based study, including a series of intensive interviews, of 260 enterprise leaders with GenAI experience across North America, the United Kingdom, Europe, and Asia-Pacific tells us the time to hold back on GenAI initiatives is over. Every leader surveyed stated GenAI would be deployed within their IT programs within the next 12-18 months and that its application will be widespread, with 39% saying it will be in more than half of their IT programs in the same timeframe.

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The report emphasizes that adopting a proactive “doer” mindset can propel enterprises beyond proof-of-concept (POC) stages and pilot projects, enabling full operational deployment of GenAI. Compared to those still in planning stages, enterprises embracing this approach are five times more likely to achieve functional GenAI deployment, showcasing tangible benefits of practical strategies.

Furthermore, the report urges enterprise leaders to grasp GenAI’s substantial potential while managing associated risks, costs, and compliance considerations. It stresses the urgency of proactive engagement in a rapidly evolving technological landscape, reinforcing the message: “Stop dreaming, start doing.”

Mohit Joshi, CEO and Managing Director, Tech Mahindra, “GenAI is transforming businesses by automating tasks, enhancing content creation, and boosting productivity. At Tech Mahindra, we exemplify how integrating GenAI into core operations drives profound outcomes and fosters innovation to scale at speed. This report underscores the strategic imperative for businesses to embrace GenAI and unlock limitless possibilities.”

According to the study’s author, David Cushman, Executive Research Leader at HFS Research, “New technologies such as GenAI take us into the territory of unknown unknowns. Best practices have yet to be discovered, let alone established. The best way through such uncertainty is to get on and try things – and learn from doing. This research is a ringing endorsement for that approach.”

HFS Research CEO and Chief Analyst Phil Fersht, agrees, “GenAI represents a seismic technological shift, offering unparalleled capabilities to transform business operations. The era of maintaining outdated processes and technologies is over. The choice is clear: innovate or be left behind.”

Other insights from the study include:

Close to 2/3 of “Doers” are investing in new sources of value and operational improvements.
Accelerating adoption of GenAI will come down to clarity on ROI, addressing risk, and getting data and people prepared.
A practical approach to business value, cost, and technical expertise and support were ranked as the top three most important attributes when engaging with GenAI and AI service providers.
“Dreamers” are nearly 50% more likely to seek a strategic vision from service providers, while doers demand critical delivery capabilities and a willingness to share risks and rewards.

Tech Mahindra offers technology consulting and digital solutions to global enterprises across industries, enabling transformative scale at unparalleled speed. With 145,000+ professionals across 90+ countries helping 1100+ clients, TechM provides a full spectrum of services including consulting, information technology, enterprise applications, business process services, engineering services, network services, customer experience & design services, AI & analytics, and cloud & infrastructure services. It is the first Indian company in the world to have been awarded the Sustainable Markets Initiative’s Terra Carta Seal, in recognition of actively leading the charge to create a climate and nature-positive future. Tech Mahindra is part of the Mahindra Group, founded in 1945, one of the largest and most admired multinational federation of companies.

Also Read: Survey Reveals Only 20 Percent of Senior IT Leaders Are Using Generative AI in Production

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