57% of Information Sector Firms Achieve High ROI From GenAI

You’ve heard of the digital divide. When it comes to generative artificial intelligence (GenAI), there’s also an ROI divide. A recent PYMNTS report, “Generative AI’s ROI Divide: How Leading Industries Are Innovating While Others Lag,” provides a compelling look at the current landscape of GenAI adoption and its impact across various sectors. Drawing from surveys of 540 C-suite executives in the U.S. with annual revenues of at least $1 billion, this study reveals a significant disparity in how industries are leveraging and benefiting from GenAI.

Here are three key takeaways from the report:

1. The Information Sector Leads in GenAI ROI Through Strategic Customization:

The report makes it clear that the information sector is leading the charge in realizing a return on investment (ROI) from GenAI. An impressive 57% of information firms report very positive ROI from their GenAI deployments, a higher rate than any other sector surveyed. This success is attributed to their strategic approach: They are not just using off-the-shelf solutions but are actively customizing and developing proprietary large language models (LLMs) to meet their unique needs. Specifically, 71% of information firms use GenAI for new content generation, and 57% deploy it for automated cybersecurity systems. Information sector executives prioritize innovation and strategic insights as the top benefits of using AI, focusing on building new capabilities rather than just operational improvements.

2. Manufacturing and Construction Find Efficiency and Innovation With GenAI:

While not achieving the same level of ROI as the information sector, the manufacturing and construction industries demonstrate how GenAI can enhance efficiency and innovation, even in sectors known for manual labor. Manufacturing firms leverage GenAI to generate feedback on production processes (56%), and both sectors are using it to identify fraudulent behavior and inconsistencies. Furthermore, 59% of manufacturing firms and 44% of construction companies report that GenAI contributes to product or service innovation. These industries are seeing strong adoption of GenAI for high-impact tasks, which leads to significant returns when deployments are aligned with core operations.

3. Retail Faces Customization Challenges Despite Embracing GenAI for Customer Engagement:

The retail sector is heavily invested in GenAI, primarily using it for customer-facing chatbots, with 71% of firms using it for this purpose. These chatbots are seen as vital for managing high volumes of customer interactions. While this focus on customer engagement is essential, the retail sector is heavily reliant on existing, general-purpose tools. The report indicates that 61% of retail firms are using just existing baseline models, limiting their ability to achieve more transformative ROI. Sectors like information and manufacturing are ahead in building or developing their own proprietary solutions, with 70% and 69% doing so respectively. While 100% of retail firms use general purpose conversational AI, the report emphasizes the need to expand beyond basic chatbots for more customized applications.

In conclusion, the report underscores that strategic alignment, customization, and a focus on high-impact tasks are the key ingredients for unlocking GenAI’s full potential. While many industries see the potential, the report emphasizes the importance of moving beyond baseline applications to achieve substantial ROI. As more and more organizations plan to integrate GenAI fully, matching budget increases with innovation and efficiency will be critical for success.