July 24, 2024

AI contracts specifying generative AI (GenAI) jumped from 7% of contracts in the first half of 2023 to 38% in the second half of the year, Omdia’s Enterprise AI Contracts Database reveals. Annually, the number of GenAI-specified contracts increased from just one in 2022 to 96 (23% of contracts) in 2023. The trend suggests enterprises are truly adopting GenAI and that GenAI is rapidly growing share in the AI market. But the contracts also suggest some enterprises are simply in a GenAI exploration phase.

While contracts may surface trends in market activity, they more precisely publicize what vendors and end-users want their investors, customers, and competitors to know. Vendors are eager to showcase new GenAI product sales. End-users want to demonstrate their digital savvy in deploying cutting-edge technologies and appear as leaders in a GenAI revolution. Some of the announcements, especially those related to cloud-service-provider contracts (e.g., Google, AWS), indicate a range of areas where GenAI may be deployed.

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“This approach may suggest some enterprises are taking shotgun aim at GenAI to see where the technology best benefits,” said Neil Dunay, Omdia Principal Forecaster. “Alternatively, it could signal a squandering of investment resources if enterprises aren’t properly scoping GenAI use cases that best fit their needs.”

The contracts data identifies which sectors have the keenest interest in GenAI. Unsurprisingly information technology is the most intensive adopter of GenAI, with more than half of IT industry contract announcements mentioning GenAI. Healthcare, business services, media and entertainment, retail, and financial services also have above-trend interest in GenAI.

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By far, the largest use case for GenAI among these contracts is virtual assistants, to facilitate customer service and engagement. The second largest use case is intelligent process automation, to improve efficiency and productivity. Other GenAI use cases with multiple contracts include sports video and stats analytics (fan engagement), automated report generation, and digital experience marketing (personalized marketing).

Omdia’s Enterprise AI Contracts Database covers approximately 100 contracts and related vendor announcements each quarter. First published in 2020, this Omdia database now contains more than 1700 records. Each record identifies the chief AI use case covered by the contract, the industry of the end user, and their geographic territory. Contract summaries and hyperlinks to the original announcements are provided.

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The post New Omdia data confirms enterprise enthusiasm for Generative AI surged in late 2023 first appeared on PressRelease.cc.

New Omdia data confirms enterprise enthusiasm for Generative AI surged in late 2023 first appeared on Web and IT News.

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