Dive Brief:

• Only 8% of companies surveyed by consulting firm Protiviti reported being in a stage of artificial intelligence adoption where the technology is driving significant business transformation, according to findings released Tuesday.
• The study grouped companies according to where they fell on an AI adoption curve, with “transformation” being the peak level of maturity. Thirty-two percent of organizations were in the experimentation stage, the largest category. 
• “To move beyond the experimentation phase and realize the value potential of AI, executives must radically redefine what success looks like, shifting their focus from immediate cost savings to strategic growth, revenue enhancement, and innovation,” Christine Livingston, global leader of Protiviti’s AI practice, said in a press release.

Dive Insight:

Firms are making bigger financial and talent commitments to generative AI in particular, with annual budgets now averaging about $10 million, an increase of 102% over February 2024 levels, according to a May report by Bain & Company.

While AI adoption is growing, organizations across all maturity levels face barriers that can slow or stall progress, Protiviti said. The most cited challenges include data availability and access issues as well as conflicting regulatory guidance.

The Protiviti study segmented respondents by level of AI maturity across five stages:

• Initial: The organization recognizes AI's potential benefits but has limited understanding of the technology and no strategic initiatives, and key performance indicators have not yet been defined.
• Experimentation: The organization has initiated small-scale AI projects and pilot programs to assess feasibility and benefits.
• Defined: The organization has integrated AI solutions into existing business processes, enhancing operational efficiency and decision-making.
• Optimization: The organization has enhanced AI systems for performance and scalability, with continuous improvements based on data feedback.
• Transformation: AI drives significant business transformation at the organization, creating new opportunities.

The survey findings show a clear link between AI maturity and return on investment, according to the report. “Organizations often do not see quantifiable returns in very early stages but after advancing capabilities and fully integrating AI, organizations see demonstrable value,” the release said.

Protiviti polled more than 1,000 respondents across industries and geographies.