Google Cloud: Gen AI Driving Significant ROI for Businesses

The transformative power of generative AI (Gen AI) is making waves across businesses globally, with a new study from Google Cloud revealing substantial returns on investment for early adopters. However, the research also highlights a critical challenge: many enterprises are struggling to move beyond the pilot phase and fully integrate gen AI into their operations.

The study, which surveyed over 2,500 business leaders globally, paints a picture of technology on the cusp of widespread adoption. In the UK, 62% of businesses have already implemented at least one Gen AI use case in production, with 70% reporting a return on investment for at least one application.

“The UK is clearly embracing the transformative power of Gen AI,” comments Helen Kelisky, UKI MD at Google Cloud, “with many businesses already seeing a significant return on their investments.”

This optimism is reflected in the financial commitments being made when it comes to Gen AI. Nearly three in five UK organisations plan to allocate at least 50% of their AI budget to the technology, signalling a strong belief in its potential to drive business growth and efficiency.

The areas where UK companies anticipate the most significant ROI within the next year are Customer & Field Service (45%), New Products & Services (39%), and Digital Commerce & Enhanced Experiences (38%), suggesting that businesses see Gen AI as a tool not just for internal productivity, but for enhancing customer experiences and driving innovation.

Among UK organisations currently utilising Gen AI, approximately a third are witnessing significant ROI in customer service (30%) and individual productivity (38%). The most common use case for the technology in the UK is Customer & Field Services, with 68% of businesses employing the technology in this area.

Gen AI impacting global business growth

Globally, the impact of Gen AI on business growth is even more pronounced. The study found that 77% of executives reporting business growth attributed improved leads and customer acquisition to gen AI solutions. Moreover, of those reporting increased revenue, 86% estimate gains of 6% or more.

The technology’s impact extends beyond just revenue generation. When it comes to cybersecurity, 56% of organisations leveraging Gen AI say they have seen an improvement to their security posture, with 82% of those reporting an improved ability to identify threats. This suggests that Gen AI could play a crucial role in bolstering defences against increasingly sophisticated cyber threats.

Employee productivity also sees a significant boost from Gen AI. Of those reporting improved productivity, 45% say Gen AI solutions have at least doubled employee productivity. Furthermore, 70% of these respondents saw improved IT processes and staff productivity as a result of generative AI solutions.

However, despite these promising results, the study reveals a significant hurdle: 38% of UK organisations are yet to implement Gen AI in production. This indicates a substantial challenge in scaling this transformative technology from pilot projects to full-scale implementation.

“It's equally clear that successfully scaling Gen AI across the enterprise is a complex journey,” Kelisky notes. “British businesses need a clear strategy, strong leadership and the right technological foundations to navigate this path effectively.”

When it comes to successful gen AI implementation, Google Cloud’s research found that comprehensive C-level sponsorship is a crucial element, with 91% of organisations boasting full C-suite support reporting revenue growth of 6% or more.

The impact of Gen AI is set to be far-reaching. New analysis compiled by Public First for Google shows that almost two-thirds of jobs across the UK (61%) have the potential to be significantly enhanced by AI. Every sector will be impacted in some way, with office workers and roles involving administrative tasks likely to see the most transformation.

As UK businesses continue to navigate the gen AI landscape, the potential for substantial returns is clear. However, the journey from pilot to production remains a critical challenge.

Kelisky concluded with a call to action for UK businesses: “To fully harness the power of gen AI, UK organisations should prioritise strategic alignment, invest in change management and upskilling, and enhance data quality and knowledge management.”

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