Making Generative AI workable: The importance of pilots

Gartner’s research has indicated that over half of organizations have increased Generative AI investment in the last 10 months and 45% of executive leaders have reported that they are in piloting mode.

The enthusiasm surrounding Generative AI across various sectors might be dampened by the relatively low conversion rate of Proof of Concept (POC). According to Peter Bendor-Samuel, CEO of Everest Group, writing for Forbes, around 90% of these pilots are unlikely to advance into production in the near term, and some may never do so at all.

Amidst this backdrop, ensuring a viable return on investment becomes paramount for Generative AI initiatives. This underscores the critical need for meticulous planning. It's essential to discern the practical applications for developing Generative AI solutions, particularly in cases where alternative non-AI technologies may suffice or where existing AI products already address organizational requirements.

Pilot Purgatory and Generative AI

Navigating what's conversationally termed "pilot purgatory" poses a significant challenge for many organizations venturing into the realm of Generative AI. This term encapsulates the scenario where promising proof of concept (POC) projects fail to progress into full-scale production, leaving companies in a state of limbo. A December 2023 report by PwC delves into this phenomenon, cautioning about the risks associated with investing time and resources into pilots that generate more enthusiasm than tangible value

Embarking on Generative AI Projects

Generative AI, despite its potential to revolutionize various industries, isn't immune to this phenomenon. The allure of experimenting with cutting-edge technology can sometimes overshadow the pragmatic considerations necessary for successful implementation. Organizations must move beyond mere fascination with the technology and meticulously assess its real-world applications and potential ROI.

To avoid falling into this trap, organizations embarking on Generative AI projects must adopt a strategic approach. This entails identifying concrete business objectives and use cases where Generative AI can deliver tangible operational benefits. Moreover, constant evaluation and adaptation are essential throughout the pilot phase to ensure alignment with organizational goals and stakeholder expectations.

In essence, while the promise of Generative AI is tantalizing, organizations must navigate the potential pitfalls of pilot purgatory with foresight and strategic planning to unlock its full potential and drive meaningful business outcomes.

Report: Moving Generative AI into Production’

Check out Generative AI Summit report ‘Moving Generative AI into Production’ to better understand how regardless on technological advancements, moving Generative AI projects from pilot to production will continue to involve the buy-in of all people across organisations. Learn more.

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