Deloitte Davos Survey: Gen AI Projects Face Scale Hurdles
The rapid development of generative AI (Gen AI) has prompted a wave of enterprise experimentation over the past year, with companies across sectors testing applications from content creation to software development. Yet the path from pilot projects to full-scale deployment presents significant challenges, according to new research from Deloitte.
While technology vendors continue to release more capable AI models and tools, organisations face practical hurdles in areas including governance, risk management, and workforce adaptation. This gap between technological capability and operational reality is shaping how businesses approach Gen AI implementation.
These findings emerge from research by Deloitte, indicating organisations are taking longer than anticipated to scale Gen AI projects, even as most report positive returns on investment.
The research, which surveyed 2,773 directors and C-suite executives across 14 countries, reveals that more than two-thirds of respondents expect 30% or fewer of their Gen AI experiments to reach full scale within six months.
The survey, published by the Deloitte AI Institute at the 2025 World Economic Forum (WEF) Annual Meeting in Davos, represents the fourth quarterly edition of the company’s State of Generative AI in the Enterprise report. The research spans six industries: consumer goods, energy and industrial resources, financial services, life sciences and healthcare, technology and telecommunications, and government services.
Cybersecurity and IT Lead Gen AI Implementation
Information technology departments are at the forefront of Gen AI adoption, with 28% of organisations reporting their most advanced implementations in this function. Cybersecurity applications have demonstrated particular success, with 44% of respondents reporting returns exceeding expectations.
- 69% of organisations expect full governance strategy implementation to take over one year
- 28% report their most advanced generative AI initiatives are in IT functions
- 20% of organisations report returns of over 31% on scaled generative AI projects
The findings indicate that 78% of organisations plan to increase their AI spending in the next fiscal year, despite the slower than expected pace of implementation.
The report includes case studies demonstrating how financial institutions are using Gen AI to enhance software security, technology companies are applying it to accelerate sales, and consumer businesses are deploying it for social media content creation.
Regulatory Concerns Hamper Deloitte Survey Respondents
Regulatory compliance has emerged as the primary obstacle to developing and deploying generative AI applications, increasing from 28% in the first wave of the survey to 38% in the fourth wave. The research indicates that 69% of organisations expect to spend more than a year implementing governance strategies.
Joe Ucuzoglu, Deloitte Global CEO, says: “Gen AI use cases are rapidly proliferating in leading enterprises across industries. We are seeing a shift as leaders move past the initial hype to strategically deploying Gen AI in the core of their businesses. Focus is essential, prioritizing demonstrated use cases with measurable return on investment.”
Autonomous Agents Gain Traction In Enterprise
The survey reveals that organisations are exploring autonomous agents, AI systems designed to complete tasks with minimal human intervention. Twenty-six percent of surveyed organisations report significant investment in autonomous agent development, with 42% indicating some level of exploration.
The implementation of autonomous agents faces challenges similar to broader generative AI adoption, including data quality issues, workforce preparation and risk management considerations. These barriers are heightened by the increased complexity of autonomous systems.
Gen AI use cases are rapidly proliferating in leading enterprises across industries. We are seeing a shift as leaders move past the initial hype to strategically deploying Gen AI in the core of their businesses
Almost all organisations report measurable returns on their most advanced Gen AI initiatives, with 20% reporting returns of 31% or more. The survey data suggests organisations are moving from technology catch-up to seeking competitive differentiation through Gen AI applications.
Successful scaling strategies identified in the research include centralised governance frameworks, phased adoption approaches, external partnerships and continuous refinement of implementations.
The survey methodology involved business and technology leaders with direct involvement in piloting or implementing Gen AI within their organisations. Data collection occurred between July and September 2024.
Jim Rowan, Applied AI leader and principal at Deloitte Consulting LLP, says: “Amid the promise of AI agents and the evolution of foundational models, future-thinking organisations are as bullish as ever in building bridges to ROI, all while understanding the need for nuance – and patience – as we embrace this next wave of Gen AI. Anticipation is high, and now is the time for leaders to take the long view of their Gen AI investments, with a focus on governance, collaboration and continued iteration as key accelerators in the race for sustainable value.”
Explore the latest edition of Technology Magazine and be part of the conversation at our global conference series, Tech & AI LIVE.
Discover all our upcoming events and secure your tickets today.
Technology Magazine is a BizClik brand
