Enterprises look to Third-Party providers for Generative AI Solutions: Report

A report by Everest Group, supported by WNS, reveals that 62% of enterprises plan to rely on third-party providers for Generative AI solutions and enhanced technical capabilities.

The tech industry is rapidly evolving, with Generative AI solutions gaining traction across enterprises. According to a report by Everest Group supported by WNS, 62% of enterprises plan to depend on third-party providers for Generative AI solutions and enhanced technical capabilities. This trend underscores the growing importance of Generative AI in Customer Experience Management (CXM) and the transformative potential it holds for businesses.

The report, titled ‘Generative AI in CXM: Assessing Enterprise Readiness for this Disruptive Transformation,’ surveyed CXM, digital transformation, and innovation leaders from 200 companies worldwide with annual revenues exceeding US$ 500 million. The findings highlight a significant awareness of Generative AI and its applications, particularly in text (75%), code (62%), and image generation (52%). Despite this awareness, challenges such as robust technology infrastructure, cultural inertia, data privacy, and security concerns are inhibiting its adoption.

Advertisement

Generative AI is seen as a key driver of innovation, productivity, and improved customer experiences, with around 80% of enterprises confident that using Generative AI applications in CXM will enhance operational efficiency and Customer Satisfaction (CSAT) scores. The report also reveals that enterprises are strategically investing in Generative AI initiatives, with 14% planning to allocate between US$ 5-10 million for Generative AI technology within the next 12-18 months.

To leverage the full potential of Generative AI, enterprises are turning to third-party providers for support. These providers play a crucial role in aiding in-house technical teams, assisting with maintenance and troubleshooting, and supervising the functioning of Generative AI solutions. Additionally, enterprises seek strategic support from third-party providers in activities such as designing the Generative AI adoption strategy and implementing privacy, security, and regulatory compliance measures.

Despite the readiness of enterprises in terms of technology infrastructure, a shortage of internal technical expertise remains a significant challenge. Less than half of the surveyed enterprises feel they possess adequate capabilities for roles such as AI/ML engineers and data scientists, highlighting the need for upskilling and reskilling efforts.

The report underscores the growing importance of Generative AI in CXM and the need for enterprises to collaborate with third-party providers to successfully implement Generative AI solutions. By addressing challenges and leveraging the transformative potential of Generative AI, enterprises can drive innovation, enhance productivity, and deliver superior customer experiences.