Generating Value from Generative AI
What enterprises can learn from the information services sector
AI Growth Projections
Generative AI will heavily influence the value of information services companies in the next half decade, according to a report by Morgan Stanley.
The research suggests that rapid advancements and early adoption by the industry will drive significant market expansion by 2028. According to Morgan Stanley’s projections, companies that leverage generative AI can expect to see a $15 to $30 billion revenue bump in the next 4 years.
“The market is pricing this in. Technical leaders in organizations will be ranked on adoption because that is what will move the share price. The business needs them more than ever to define how technology change will generate value for the business.”
~ Steven Smith, CEO of BaseCap Analytics.
So, how can CIOs and CDOs position their company to reap tangible benefits from AI? We’ve read the full report, so you don’t have to!
Key Findings from the Report
1. Competitive Advantages
“We see 5 key competitive advantages for Info Services companies to monetize Gen AI solutions and capture share: data, distribution, customer relationships, domain expertise, and must-have workflow tools.”
Insight: Information services companies possess critical advantages in leveraging generative AI due to their deep reservoirs of data and established market presence. Other companies looking to follow their model will begin building out their own data reservoirs (with quality data) now—if they haven’t already.
2. Projected Revenue Growth
“Our base case assumes ~100bps of annual revenue growth uplift from Gen AI solutions, generating $15B of revenue in 2028.”
Insight: The report outlines a conservative estimate of the revenue potential that generative AI could unlock within the sector by enhancing existing data-driven services. Importantly, generative AI is seen as a support for service enhancement, not a driver of growth itself.
3. Early Adoption
“Almost all of our Info Services coverage have launched Gen AI solutions or will in the near future.”
Insight: The rapid adoption of generative AI across information services firms indicates a proactive approach to integrating advanced technologies into their service offerings. Early adopters will reap real rewards from a faster go-to-market for AI-enhanced service offerings.
Investing in data health is the best way to avoid feeding AI systems garbage in and getting garbage out.
How to Succeed with Generative AI
As seen in the information services industry, implementing generative AI effectively can be pivotal for enterprise success. Every sector can employ key tactics to see similar results.
5 strategies to capitalize on the generative AI revolution:
- Invest in High-Quality Data: The foundation of successful AI applications lies in robust, high-quality data. Quality in, quality out. Ensure your datasets are clean, comprehensive, and aligned with the specific needs of your industry.
- Keep Good Company: work with software vendors and third parties who are likewise committed to modernizing workflows using generative AI. This will ensure a more efficient tech stack in the long-run.
- Leverage Domain Expertise: Capitalize on areas with deep domain expertise to guide the development and deployment of AI solutions that cater to specific industry challenges and opportunities.
- Integrate AI into Core Workflows: Embedding generative AI directly into existing platforms and workflows enhances efficiency and usability, providing a seamless user experience and maximizing adoption rates.
- Focus on Scalability: Design AI solutions that can scale across different markets and customer segments, ensuring flexibility and adaptability to varying demands and regulatory environments.
- Prioritize Ethical Considerations: As AI becomes more pervasive, maintain a focus on ethical AI practices. Ensure transparency, accountability, and fairness in the deployment and use of AI technologies to build trust with customers and stakeholders.
By following these tips, enterprises can emulate the success stories outlined in the Morgan Stanley Research report and position themselves at the forefront of generative AI adoption.
TLDR
Companies that proactively adopt and integrate artificial intelligence are more likely to grow in value in the coming decade.
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About BaseCap
BaseCap is the intuitive data validation platform that operations teams use to feed quality data to AI algorithms.
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