In 2024, the technology sector moved firmly into the AI phase of computing. Cloud service providers, enterprises, and technology vendors are spending more on AI than ever, and adoption rates are high. But skeptics are wary of AI’s return on investment. What explains the dissonance? Our work with clients suggests that AI, more than other technology disruptions, generates little value from deployment alone. Creating value with AI requires changes in the working processes of hundreds or thousands of employees. Companies need to conduct business diagnostics, redesign processes, set targets, and manage change as they deploy this technology. But early proof points from our client work are encouraging, showing that generative AI initiatives could be worth up to 20% of EBITDA.
