Time for businesses to move past generative AI hype and find real value

Organizations must move past the current hype around artificial intelligence (AI), specifically generative AI (GenAI), and work out how to generate real value from the technology.

The industry likely is now at the point of inflated expectations and about to hit the precipice of disillusionment, noted Ngiam Siew Ying, CEO of IT healthcare services provider Synapxe. Referring to the typical hype cycle around emerging technology, she said many statements about the promise of AI are mostly generic, leading to unsustainable hype around the technology.

Also: What is generative AI and why is it so popular? Here’s everything you need to know

There is now a need to move toward identifying the value of AI, urged Ngiam, during a panel discussion held this week at the NCS Impact conference in Singapore. 

There is huge potential if businesses can figure out how to adopt and use AI, she said. 

The application of AI in software engineering, for example, can yield various benefits for organizations, according to a new report from Capgemini Research Institute. The research noted that the adoption of generative AI is still at an early stage, with nine in 10 organizations yet to scale. 

Also: Finding the path toward success as organizations bring AI into the workplace

The Capgemini study polled 1,098 senior executives and 1,092 software professionals across 13 markets, including Australia, Singapore, Germany, India, the US, and the UK.

The report found that 27% of organizations run generative AI pilots, with 11% tapping the technology in their software operations. About 75% of large enterprises, with an annual revenue of at least $20 billion, have adopted the technology, compared to 23% of organizations with an annual revenue of between $1 billion and $5 billion. 

The Capgemini report expects adoption to climb significantly in the next two years, with 85% of software workers using generative AI tools in 2026, up from the current rate of 46%. Generative AI should play a key role in “augmenting” these professionals with better experiences, tools, and governance, supporting at least 25% of software design, development, and tests by 2026. 

The study further revealed that 80% of software professionals believe generative AI tools, which can automate repetitive tasks, will free up their time to focus on tasks that yield higher value. Three-quarters of professionals think generative AI has the potential to improve collaboration with non-technical business teams. 

Among the professionals that have already adopted the technology, 61% say it has facilitated innovation, such as developing new features and services, while 49% point to improvements in software quality. Another 40% point to increased productivity. 

Building the infrastructure to support AI

However, organizations will not be able to fully leverage the gains from emerging technology if they lack the necessary infrastructure, namely digital resilience, to embrace the “transformational potential” of AI, said NCS CEO Ng Kuo Pin.  

Speaking at the conference, Ng said: “To build a safer and more sustainable future, it is crucial that organizations invest to build a foundation in cybersecurity, data governance, and technology that will allow AI to flourish. We believe organizations that master both AI and digital resilience will be the ones that will thrive in this increasingly complex global environment.”

“AI will be a game-changer and companies must learn the new game — the earlier, the better,” he said, as he touted NCS’ experience using AI within its workforce as a knowledge base to help its clientele adopt emerging technology. The systems integrator is a fully owned subsidiary of Singapore telco, Singtel. 

Also: Code faster with generative AI, but beware the risks when you do

NCS launched a range of new services this week, including its AI-Digital Resilience Matrix, which helps enterprise customers establish a roadmap to build AI deployment and digital resilience. The offering provides a framework based on the customer’s maturity levels of AI adoption and digital robustness, enabling the organization to assess its AI readiness and the steps it should take. 

NCS also announced a partnership with Amazon Web Services (AWS) to launch a GenAI Center of Excellence for Public Good, tapping AWS’ GenAI Innovation Center. The new facility is tailored for the Asia-Pacific region’s public sector, according to NCS, and will be supported by AWS’ team of engineers and applied scientists, among others, to drive the use of AI solutions in the sector using AWS’ platforms.  

“AI has captured our imagination with its capabilities in natural language processing, image recognition, and predictive analytics,” said Singapore’s Deputy Prime Minister Heng Swee Keat during his speech at the conference. “Governments, companies, and social organizations are learning to make use of digital technologies and AI to fulfill their missions better.”

Also: AI is changing cybersecurity and businesses must wake up to the threat

Heng noted that Singapore is tapping AI to improve public services, including using smart traffic management systems to reduce congestion and AI-powered chatbots to provide 24/7 access to government services.

He added that potential breakthroughs in frontier technologies, including quantum computing, will offer the ability to solve complex problems and revolutionize fields such as cryptography and pharmaceuticals. 

“But, for us to successfully harness technology for the good of humanity, we must manage the downside risks, while maximizing the upsides,” he noted.

Heng pointed to digital threats such as scams and cyberattacks, which can be costly and undermine public trust in technology, as well as issues related to the ethical and safe use of AI.

Also: Transparency is sorely lacking amid growing AI interest

“Despite the promise of AI systems, they are not perfect. AI systems are trained on data and can produce biased or inaccurate outcomes without good training data,” he said. “Vulnerabilities in AI algorithms can also be exploited by bad actors to manipulate outcomes.”

He underscored the importance of establishing the right guardrails and creating “conditions to innovate safely, responsibly, and for the common good”.