Gen AI Success: Need For Governance, Infrastructure & Talent

Generative AI (Gen AI) has emerged as a transformative technology with the potential to revolutionise industries across the board. From process automation and predictive analytics to fraud detection, organisations are increasingly recognising the value of Gen AI in driving operational efficiency and innovation. However, as enterprises rush to adopt this cutting-edge technology, a critical gap is emerging between ambition and readiness.

Gen AI's appeal is undeniable. A recent report from Enterprise Strategy Group (ESG) and Hitachi Vantara has found that 97% of organisations with Gen AI projects in progress consider it a top-five priority. The technology’s ability to generate human-like text, images, and other content has captured the imagination of business leaders, with 63% of surveyed companies having already identified at least one use case for Gen AI.

However, the road to successful Gen AI implementation is fraught with challenges. The same study revealed that less than half of organisations have well-defined and comprehensive policies regarding Gen AI use. This lack of governance, the report highlights poses significant risks, particularly in areas such as data privacy, security and ethical AI use.

Organisations cite security, infrastructure and data management as top barriers to adoption

Another critical challenge lies in the realm of infrastructure readiness. Only 37% of organisations believe their current infrastructure and data ecosystem is well-prepared for implementing Gen AI solutions. This disconnect is particularly pronounced between C-level executives and those on the ground, with the former being 1.3 times more likely to express confidence in their company's preparedness.

The reality is that Gen AI demands a robust and flexible infrastructure capable of handling vast amounts of data and complex computations. Many organisations are finding their existing systems inadequate, with 71% of respondents agreeing that infrastructure modernisation is necessary before pursuing Gen AI projects.

Addressing the talent gap

Perhaps the most pressing issue in the Gen AI landscape is the shortage of skilled professionals. The study found that 61% of respondents believe most users don't know how to capitalise on Gen AI, while 51% report a lack of employees with Gen AI expertise. This skills gap is not just about technical knowledge; it extends to the strategic understanding of how to plan and execute Gen AI projects, with 40% of respondents admitting they are not well-informed in this area.

To truly harness the power of Gen AI, organisations need to focus on three key areas:

Robust IT Governance: Developing comprehensive policies and guidelines for Gen AI use is crucial. This includes addressing data privacy concerns, ensuring compliance with regulations, and establishing ethical frameworks for AI development and deployment.

Infrastructure Modernisation: Investing in scalable, flexible infrastructure that can support the demands of Gen AI is essential. This may involve a mix of on-premises and cloud solutions, with 78% of organisations citing a hybrid approach as their preferred strategy.

Talent Development and Acquisition: Organisations must prioritise upskilling their existing workforce and attracting new talent with Gen AI expertise. This includes not just technical skills but also strategic competencies in AI project management and implementation.

The path to Gen AI maturity

As organisations navigate these challenges, they're likely to evolve in their approach to Gen AI. While 96% of survey respondents currently prefer non-proprietary models, the use of proprietary models is expected to increase six-fold in the long term. This shift indicates a growing sophistication in Gen AI utilisation, as businesses seek to achieve competitive differentiation through custom AI solutions.

“Enterprises are clearly jumping on the Gen AI bandwagon, which is not surprising, but it’s also clear that the foundation for successful Gen AI is not yet fully built to fit the purpose and its full potential cannot be realised,” comments Ayman Abouelwafa, Chief Technology Officer at Hitachi Vantara. “Unlocking the true power of Gen AI, however, requires a strong foundation with a robust and secure infrastructure that can handle the demands of this powerful technology.”