BCG AI RADAR

From Potential to Profit with GenAI

JANUARY 2024
Survey of 1,406 executives provides insights into AI and GenAI sentiment in 2024
Executive roles Respondents from 50 markets (the 13 markets in green have >25 respondents) Industries and key functions
Norway Sweden
TMT 252
14% CEO Canada
Netherlands
UK
Denmark
Germany
Belgium
France
Austria
Switzerland
Consumer 177
Spain Azerbaijan
US Italy
Turkey Japan
14% CFO
Portugal
Morocco
Malta Greece
Israel
UAE
Pakistan
Bangladesh
Industrial goods 169
Egypt
Mexico Hong Kong
Saudi Qatar India

Nigeria
Arabia Thailand Manufacturing 164
Philippines
14% CIO Togo Ethiopia
Colombia
Kenya Sri Lanka Malaysia
Financial institutions 156
Singapore Indonesia
Tanzania

10% COO Brazil Angola Health care 138

Botswana
Australia

10% CTO
Chile
South Africa Energy 81
Argentina

Transportation 68
18% CXO1 Public sector 63
Company revenue
Insurance 59
9% 24% 18% 18% 32%
20% Other2 Travel/tourism 41

$101M–$500M $501M–$1B $1B–$2B $2B–$5B >$5B Marketing 38

Source: BCG AI Radar (2024); n = 1,406 in 50 markets.

Note: Because of rounding, not all percentage totals add up to 100%. TMT = technology, media, and telecommunucations.
1
“CxO” represents executives who directly report to the CEO (e.g., CMO, CSO, CISO).
2
“Other” executive titles include chair of the board and president.
 71%
of executives surveyed say that they plan
to increase tech investments in 2024—an

Generative AI
11-point jump from 2023

will revolutionize
the world—and
executives want
to capitalize
89%
rank AI and GenAI as a top-three tech
priority for 2024, and 51% put it at the top of
their list (cybersecurity and cloud computing
are the other two top priorities)

Source: BCG AI Radar (2024); n = 1,406 in 50 markets.

A global wave of rising tech and AI/GenAI investment

Executives planning to increase Executives planning to increase

their tech investment in 2024 71% their AI/GenAI investment in 2024 85%
overall overall

Middle East 85% Middle East 93%

Asia-Pacific 80% Europe 86%

Africa 77% Asia-Pacific 85%

Europe 68% North America 85%

North America 65% Africa 82%

South America 63% South America 75%

Source: : BCG AI Radar (2024); n = 1,406 in 50 markets.

Note: In Asia-Pacific, n = 308; in North America, n = 303; in Europe, n = 647; in the Middle East, n = 28; in South America, n = 51; in Africa, n = 69.
However, most organizations are Top three reasons for dissatisfaction
not doing enough to realize the
benefits of the technology.
1 Lack of talent and skills

66% 2 Unclear AI and GenAI roadmap

and investment priorities
of executives are ambivalent or
outright dissatisfied with their
organization’s progress on AI and No strategy for responsible
generative AI so far. 3 AI and GenAI

Source: BCG AI Radar (2024); n = 1,406 in 50 markets. For executives reporting dissatisfaction, n = 310.
 62%
46%
say their firms are
still waiting to see
how AI-specific

Executives
regulations develop
of their workforce,
on average, will need

across the board to undergo upskilling

in the next three

face pressing
years due to GenAI

6%
challenges
of companies have
managed to train
more than 25% of
their people on
GenAI tools so far
Source: BCG AI Radar (2024); n = 1,406 in 50 markets.
 Executives who report that more than 25% of
their workers have trained on GenAI tools

Middle East 11%

North America 8%
Executives worldwide must
boost upskilling, as Europe,
Africa, and South America Asia-Pacific 7%

are falling behind.

Europe 5%

Africa 3%

South
Source: BCG AI Radar (2024); n = 1,406 in 50 markets. America 2% 6%
Note: In Asia-Pacific, n = 308; in North America, n = 303; in Europe, n = 647;
in the Middle East, n = 28; in South America, n = 51; in Africa, n = 69.
overall
90%
are either waiting for These are the observers. They
GenAI to move beyond the are opting for a wait-and-see
hype or experimenting in approach.
small ways.
That’s not an option with
generative AI.

Source: BCG AI Radar (2024); n = 1,406 in 50 markets.

 Winners invest for productivity and topline growth.
1 They target 10%+ productivity gains and reinvest for revenue uplift.

Winners are upskilling systematically.

2 They are scaling their learning muscle—and that extends to
Winners are executives as well.

acting now— Winners are vigilant about cost of use.

here’s how they’re 3 They understand that cost of use has long-term implications and
must command attention now.

staying ahead
Winners build strategic relationships.
4 They develop an ecosystem of partners to manage complex and rapidly
evolving challenges.

Winners implement responsible AI (RAI) principles.

Source: BCG AI Radar (2024); n = 1,406 in 50 markets.

5 They put RAI on the CEO agenda and proactively plan for emerging
policies and regulations.
 Percentage of companies expecting cost savings
in 2024

One of the biggest benefits

that GenAI promises is 1.3x 1.5x
productivity gains.

The potential benefit is

even greater for companies
that invest more—they’re 70% 67%
54%
1.5x more likely to 46%

anticipate upward of 10%

in cost savings. Any cost savings More than 10% cost savings1

All companies Companies expecting to invest more than

$50 million in AI/GenAI in 20242
Source: BCG AI Radar (2024); n = 1,406 in 50 markets.
1
Of companies expecting cost savings.
2
For companies expecting to invest more than $50 million, n = 122.
 Key goals for growth with AI and GenAI investments

1.3x
1.4x

The key is to invest

in productivity—and
topline growth. 80%
62% 66%
48%

Expand market access Build business adjacencies

All companies Companies expecting to invest more than

$50 million in AI/GenAI in 20241

Source: BCG AI Radar (2024); n = 1,406 in 50 markets.

1
For companies expecting to invest more than $50 million, n = 122.
The imperative to
provide GenAI training
is clear.

Executives believe that

46%
of workers, on average, Overwhelming majorities
will need to be reskilled believe that GenAI will
in the next three years. create new roles (81%) and
require significant change
management (74%).
Source: BCG AI Radar (2024); n = 1,406 in 50 markets.
 Companies with more than 25% of their
workforce trained on GenAI tools

3.5x
Companies that invest
more are ahead on
reskilling their workers—
and on building their
learning muscle at scale. 21%

6%

All companies Companies expecting

to invest more than
$50 million in
Source: BCG AI Radar (2024); n = 1,406 in 50 markets.
1
For companies expecting to invest more than $50 million, n = 122.
AI/GenAI in 20241
 Confidence in the executive team’s GenAI proficiency
The need to upskill
extends to the C-suite. Completely confident 1%

59%
Very confident 11%

Confident 29%
of leaders surveyed say
they have limited or no Limited confidence 40%
confidence in their
executive team’s
No confidence 19%
proficiency in GenAI.

Source: BCG AI Radar (2024); n = 1,406 in 50 markets.

 Most important consideration when choosing
an AI and GenAI solution

Cost of use, which IP and data protection 39%

has serious long-term
implications, is not
commanding the Quality and performance 32%

attention it should
Cost 19%

Source: BCG AI Radar (2024); n = 1,406 in 50 markets.

 Potential partners seen as a trusted source
of information

Winners are
Big tech platforms 71%
building strategic
relationships
with an evolving Software providers 49%
ecosystem of
partners
GenAI companies 38%

Source: BCG AI Radar (2024); n = 1,406 in 50 markets.

 Companies investing more are getting a head start

Company is already
preparing for AI-specific 38% 72%
regulations
The sheer speed of
GenAI adoption makes
RAI more important than Company has
ever, and organizations guardrails in place for 50% 68%
using AI/GenAI at work
must be proactive in
addressing this.

CEO is in charge of RAI 14% 27%

Source: BCG AI Radar (2024); n = 1,406 in 50 markets. All companies Companies expecting to invest more than $50 million in AI/GenAI in 20241
1
For companies expecting to invest more than $50 million, n = 122.
 Deploy GenAI in everyday
tasks to realize 10% to 20%
productivity potential.

Three value plays Reshape critical functions for

to maximize GenAI’s 30% to 50% enhancement in

potential efficiency and effectiveness.

Invent new GenAI business

models to build a long-term
competitive advantage.