Just 10% of organizations launched generative AI solutions in 2023, according to an Intel company

OpenAI’s ChatGPT had its one-year anniversary on Nov. 30. And generative AI remains a hot topic. But a lot of companies are still just testing the waters. 

Cnvrg.io, an Intel company, released its annual 2023 ML Insider global survey and the findings indicate the majority of organizations are still in the research or testing phase of incorporating generative AI in production. Just 10% have launched generative AI solutions, according to the AI and large language model (LLM) platform provider. Meanwhile, 25% of respondents said they’re building pilot projects for selected use cases. (In this report, a “solution” refers to an application that uses generative AI for a purpose.)

The findings are based on a global survey of 430 AI and ML practitioners, such as data scientists, engineering/DevOps, and software developers across industries including IT, financial services, banking, defense, insurance, education, automotive, and telecommunications. Half of the respondents came from companies with 600 employees or more.

The research also found that 75% of respondents reported that their organization has yet to deploy generative AI models to production in the past year, compared to 25% that have done so. (A “model” refers to generative AI separate from a solution—it’s essentially at an earlier stage of maturity and not yet a part of a solution that has a specific purpose.) The survey shows that U.S.-based respondents (40%) are significantly more likely than those outside the U.S. (22%) to deploy generative AI models.

“While still in early development, generative AI has been one of the most talked-about technologies of 2023,” Markus Flierl, corporate VP and general manager of Intel Cloud Services, said in a statement. “The survey suggests organizations may be hesitant to adopt generative AI due to the barriers they face when implementing LLMs.” 

Intel is among the major companies that joined the “AI Alliance” co-launched by IBM and Meta, according to a Tuesday announcement. The alliance challenges the perceived dominance of OpenAI, Microsoft, Google, and recently Amazon, Fortune reported.

Although generative AI applications like ChatGPT are recent, LLMs are nothing new. So the companies surveyed, for the most part, are approaching generative AI by building their own LLM solutions and customizing it to their use cases, according to the report. But 46% see infrastructure as the greatest barrier to developing LLMs into products. Also, lack of knowledge, cost, and compliance are also seen as barriers.

But those who have deployed generative AI indicated better customer experience (58%), improved efficiency (53%), and cost savings (47%), according to the report. 

Experts warn that you shouldn’t just incorporate generative AI without really assessing how it can add value to your company. Alex Singla, a senior partner at McKinsey and co-leader of QuantumBlack, the AI arm of the firm, said his team first looks across an institution and asks the question: “What are the core business problems you’re trying to solve?” And from there they assess whether or not generative AI can play a role in delivering against that business opportunity, he recently told me. 

Singla said companies also need to assess their existing technology, asking the questions: Do I have good infrastructure in place? Do I have my cloud platforms and cloud relationships already established? Do I have the right data architecture in place? 

Regarding the survey findings, Flierl anticipates increased adoption of generative AI in the coming year as organizations gain greater access to cost-effective infrastructure and services.

Have a good weekend.

Sheryl Estrada
sheryl.estrada@fortune.com

Leaderboard

Some notable moves this week:

Paul Vogel, CFO at Spotify Technology S.A. (NYSE: SPOT), will be leaving the company on March 31. Spotify has launched an external search for his successor. In the interim, Ben Kung, VP of financial planning and analysis (FP&A), will take on expanded responsibilities. Vogel has served as CFO since January 2020. He began at the company as head of FP&A, treasury and investor relations.

Dave Stephenson, CFO at Airbnb since 2019, is stepping into a new role as the company’s first-ever chief business officer. Ellie Mertz, an 11-year veteran of Airbnb, has been promoted to chief financial officer. Stephenson is tasked to drive growth across existing and new businesses, including international expansion and growing global host supply. He will also lead all business and corporate development activities at Airbnb.

David Reeder was named CFO at Chewy, Inc. (NYSE: CHWY), an online retailer of pet food and other pet-related products, effective Feb. 14. Upon Reeder’s arrival, interim CFO Stacy Bowman will continue serving as Chewy’s chief accounting officer. Reeder joins Chewy from GlobalFoundries, Inc., a semiconductor manufacturer, where he has served as CFO since 2020. He previously served as CEO of Tower Hill Insurance Group, as well as president and CEO of Lexmark International Inc.

Nicole Anasenes, CFO and SVP of finance at Ansys (Nasdaq: ANSS), an engineering simulation software provider, will depart the company in the second quarter of 2024. Ansys has launched a search for a new chief financial officer, whom Anasenes will help to transition into the role. She joined the company as CFO in 2020. Before that, Anasenes served as CFO and COO of Squarespace, Inc. She was also previously CFO at Infor.

Jeremy Johnson was named EVP and CFO at Ceridian HCM Holding Inc. (NYSE: CDAY), a human capital management company, effective Jan. 1. Johnson is a former Ceridian executive, returning to a new role. Most recently, he served as CFO at SmartRecruiters, Inc., where he also served as interim CEO. Previously, Johnson spent nearly a decade within Ceridian’s finance team.

Zankhna Vasha was named CFO at Cordillera Investment Partners, an investment management firm, effective Dec. 1. Vasha has over two decades of finance, operations, and accounting experience in private equity and venture capital. She was most recently the CFO of the $8 billion equity business of SVB Capital Management, LLC (formerly SVBCapital, the venture capital arm of Silicon Valley Bank). Before that, Vasha spent 12 years at Oaktree Capital Management where she held various accounting and finance roles.

Lance A. Berry was named CFO at Artivion, Inc. (NYSE: AORT), a cardiac and vascular surgery company, effective Dec. 4. Berry replaces Mr. D. Ashley Lee, who will retire at the end of the year. Berry, 51, most recently served as the EVP, CFO, and operations officer of Wright Medical Group N.V. until Wright was acquired by Stryker in November 2020. Before that, he served as the SVP and CFO for Wright from 2009 to 2018.

Big deal

Robert Half (NYSE: RHI), a talent solutions firm, has released its State of U.S. Hiring Survey that finds 57% of respondents plan to add new permanent positions in the first six months of the year. Meanwhile, 39% anticipate hiring for vacated positions. And about 67% expect to hire contract workers as part of their staffing strategy. Forty-three percent of hiring managers in finance and accounting said they plan to add new permanent roles, according to Robert Half.

The findings are based on an online survey with responses from more than 1,850 managers with hiring responsibilities at companies with 20 or more employees in the U.S.

Going deeper

Here are a few Fortune weekend reads:

"The rise of Joshua Kushner: How the young VC quietly built a $5.3 billion firm, Thrive Capital" by Alyson Shontell

"Soaring mortgage rates hit U.S. cities: Here’s where buying a home is most expensive relative to renting" by Nicolas Rapp and Matthew Heimer

"Women and people of color make up almost half of C-suite leaders—but they’re still locked out of some of the biggest jobs" by Lila MacLellan

"Don’t let your company holiday party turn into a horror story. Here are 7 expert tips to master it" by Alexa Mikhail

Overheard

“Customers generally speaking are really sensitive right now. They’re prioritizing their orders, and they know there’s a chance that prices might be lower right before Christmas or right after Christmas with clearance, so that’s what we expect to happen.”

—Walmart CEO Doug McMillon said in an interview with CNBC on Dec. 6 about shopping habits of consumers.