State of Applied Generative AI Market Report 2023

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<div class="input-group-append"> <button type="submit" class="contact-btn btn btn-block btn-teal px-4" formaction="/contact-us">Contact Us</button> </div> </div> </form> </div> </div> </header> <main id="content" role="main"> <div id="BodyPlaceholder_TC611E213001_Col00" class="sf_colsIn container space-top-md-2 space-bottom-2" data-sf-element="Container" data-placeholder-label="Container"><div class="row" data-sf-element="Row"> <div id="BodyPlaceholder_TC611E213002_Col00" class="sf_colsIn col-lg-12" data-sf-element="Column 1" data-placeholder-label="Main content container"> <article>  <div class="space-1"> <div class="row article-header"> <div class="col-lg-6 mb-7 mb-lg-0 article-image" style="background-image:url('https://isg-one.com/images/default-source/default-album/2023-state-of-applied-generative-ai.tmb-th1903-746.jpg?Culture=en&sfvrsn=854cd431_1');"></div> <div class="col-lg-6 pl-lg-8 d-flex flex-column"> <div class="mb-5"> <h1 class="display-4 mb-3"> State of Applied Generative AI Market Report 2023 </h1> </div> <div class="d-flex align-items-center mt-auto ml-1 mb-4 z-index-2 position-relative noprint"> <span class="d-block small font-weight-bold text-cap mr-2">Share:</span> <button class="btn btn-xs btn-icon btn-soft-secondary rounded-circle ml-2 link-share"> <i class="fas fa-share-alt"></i> </button> <div class="share-popup d-none"> <div class="d-flex align-items-center"> <a class="btn btn-xs btn-icon btn-ghost-secondary rounded-circle mr-2" data-href="https://isg-one.com/research/articles/full-article/state-of-applied-generative-ai-market-report" target="_blank" href="https://www.facebook.com/sharer/sharer.php?u=https://isg-one.com/research/articles/full-article/state-of-applied-generative-ai-market-report&src=sdkpreparse"> <i class="fab fa-facebook-f"></i> </a> <a class="btn btn-xs btn-icon btn-ghost-secondary rounded-circle mr-2" target="_blank" href="https://twitter.com/share?ref_src=twsrc%5Etfw" data-show-count="false"> <i class="fab fa-twitter"></i> </a> <a class="btn btn-xs btn-icon btn-ghost-secondary rounded-circle mr-2" href="#" onclick="window.open('//www.linkedin.com/sharing/share-offsite/?url=' + encodeURIComponent(location.href), 'LinkedIn', 'toolbar=no,scrollbars=no,width=992,height=520', 'yes', 'center');return false;"> <i class="fab fa-linkedin"></i> </a> </div> </div> <span class="d-block btn-sm btn-rounded btn-soft-secondary print-btn ml-auto" onclick="window.print();return false;">Print <i class="fa-solid fa-print"></i></span> </div> </div> </div> <div class="row article-header"> <div class="col-12"> <div class="border-top border-bottom py-2 my-3"> <div class="media align-items-center flex-wrap w-100"> <div class="author-item d-flex align-items-center mx-2 p-1"> <div class="avatar avatar-circle flex-lg-shrink-0 flex-grow-0"> <img class="avatar-img" src="/images/default-source/default-album/kupriyanova-olga-pic-sq.tmb-th100-100.jpg?Culture=en&sfvrsn=7b26d031_1" alt="Olga Kupriyanova"> </div> <div class="media-body font-size-1 ml-2 mr-2"> <p class="m-0"><a href="/who-we-are/people/olga-kupriyanova">Olga Kupriyanova</a></p> </div> </div> <div class="author-item d-flex align-items-center mx-2 p-1"> <div class="avatar avatar-circle flex-lg-shrink-0 flex-grow-0"> <img class="avatar-img" src="/images/default-source/default-album/hamze-ryan-pic-sq.tmb-th100-100.jpg?Culture=en&sfvrsn=9caed731_1" alt="Ryan Hamze"> </div> <div class="media-body font-size-1 ml-2 mr-2"> <p class="m-0"><a href="/who-we-are/people/ryan-hamze">Ryan Hamze</a></p> </div> </div> </div> </div> </div> </div> </div>  <div class="space-bottom-2"> <div class="row"> <div class="mobile-sticky"> <nav class="toc article-toc" data-toc-title="Table of Contents" data-toc-auto data-toc-target=".article-content"></nav> </div> <div class="col article-content px-md-9"> <p><a href="/advisory/ai-advisory/state-of-the-generative-ai-market-report-2024"><em>Read the State of Generative AI Market Report 2024 here.</em></a></p><p>The phenomenon of generative artificial intelligence (AI) has caught the attention of not only technology and business leaders but also the average individual. In fact, according to ISG Research, 85% of enterprises believe that investment in generative AI technology in the next 24 months is important or critical (from the ISG study: <a href="/docs/default-source/default-document-library/2023-workplace-svcs.pdf?sfvrsn=8dcbd731_0">2023 Future Workplace</a>). This technology did not appear out of a vacuum; it leverages decades of work and is distinctly different from predecessor methods. </p><p>Historically, one of the first milestones of functional AI was its ability to recognize patterns via assimilating data into static algorithms. However, the use cases for this learn-only capability are narrow, largely because it requires intensive human management and training. Further advancements in machine learning and neural networks facilitated AI to learn and repeat tasks, enabling it to actively engage, interpret and replicate data inputs. The human role was less burdensome, enabling new business improvements and efficiencies. </p><p>Now, AI has a new, powerful capability: the ability to generate content. </p><p>While generative AI is likely to have a deep and lasting impact, there are many challenges to overcome – from navigating security, copyright data challenges, ethics and legal concerns to fine-tuning enterprise-grade use cases. </p><p>Our aim with this report is to look past the hype and conduct a comprehensive analysis of the current landscape for enterprise adoption of generative AI. It will be followed by further reports and snapshots of the landscape as it evolves. This study has two goals: </p><ol><li>To report our findings of top trends, use cases, solutions, industries and challenges related to adopting generative AI, and </li><li>To share data-driven insights and actionable recommendations to assist businesses in achieving impactful transformations across diverse sectors.<strong style="background-color:transparent;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;"></strong></li></ol> <div id="paywallContent"> <div class="paywall-pre"> <p><strong>Please fill out this form to continue.</strong></p> <div class="paywall-form"> <script src="//app-sjf.marketo.com/js/forms2/js/forms2.min.js"></script> <form id="mktoForm_2750"></form> <script>MktoForms2.loadForm("//app-sjf.marketo.com", "257-STB-379", 2750);</script> </div> </div> </div> <div class="paywall-blur blur"> </div>  <div class="row justify-content-sm-between align-items-sm-center mt-5 noprint"> <div class="col-sm-6 mb-2 mb-sm-0"> <div class="d-flex align-items-center"> <span class="d-block small font-weight-bold text-cap mr-2">Share:</span> <a class="btn btn-xs btn-icon btn-ghost-secondary rounded-circle mr-2" data-href="https://isg-one.com/research/articles/full-article/state-of-applied-generative-ai-market-report" target="_blank" href="https://www.facebook.com/sharer/sharer.php?u=https://isg-one.com/research/articles/full-article/state-of-applied-generative-ai-market-report&src=sdkpreparse"> <i class="fab fa-facebook-f"></i> </a> <a class="btn btn-xs btn-icon btn-ghost-secondary rounded-circle mr-2" target="_blank" href="https://twitter.com/share?ref_src=twsrc%5Etfw" data-show-count="false"> <i class="fab fa-twitter"></i> </a> <a class="btn btn-xs btn-icon btn-ghost-secondary rounded-circle mr-2" target="_blank" href="https://www.linkedin.com/sharing/share-offsite/?url=https://isg-one.com/research/articles/full-article/state-of-applied-generative-ai-market-report"> <i class="fab fa-linkedin"></i> </a> </div> </div> </div>   <div class="border-top border-bottom py-5 mt-8"> <div class="row pb-3"> <div class="col-12"> <h2 class="author-title" data-toc-exclude>About the authors</h2> </div> </div> <div class="author-info"> <div class="avatar avatar-circle avatar-xl"> <img class="avatar-img" src="/images/default-source/default-album/kupriyanova-olga-pic-sq.tmb-th283-283.jpg?Culture=en&sfvrsn=7b26d031_1" alt="Olga Kupriyanova"> </div> <div class="media-body ml-3"> <h4 class="mb-0"><a href="/who-we-are/people/olga-kupriyanova">Olga Kupriyanova</a></h4> <div class="mb-0"> <input type="checkbox" id="expand-olga-kupriyanova"> <span class="bio">In ISG, Olga supports our advisory capability in developing digital solutions with special focus on data and analytics. Olga’s extensive knowledge of analytics and data engineering framework combined with hands on experience in complex transformational projects results in unique insights invaluable for effectively assessing the data analytics solutions for ISG’s clients.</span> <label for="expand-olga-kupriyanova" role="button"><span class="more">read more</span><span class="less">read less</span></label> </div> </div> </div> <div class="author-info"> <div class="avatar avatar-circle avatar-xl"> <img class="avatar-img" src="/images/default-source/default-album/hamze-ryan-pic-sq.tmb-th283-283.jpg?Culture=en&sfvrsn=9caed731_1" alt="Ryan Hamze"> </div> <div class="media-body ml-3"> <h4 class="mb-0"><a href="/who-we-are/people/ryan-hamze">Ryan Hamze</a></h4> <div class="mb-0"> <input type="checkbox" id="expand-ryan-hamze"> <span class="bio"><p>Ryan Hamze is a Principal Consultant in the Smart Manufacturing advisory group under the Americas Consulting. He is a seasoned thought leader and delivers strategic roadmaps to clients across different industries, advising on advanced technology trends, enterprise architecture and digital transformation strategies.</p><p>With over 15 years of leadership and Enterprise IT experience, he joined ISG in the summer of 2023. His expertise spans beyond Industrial Manufacturing technologies, focusing on governance, vendor sourcing, and executive-level digital transformation strategies. His contributions to ISG research have earned him recognition as a thought leader in leveraging GenAI to drive digital innovation, particularly within digital threads and digital twins.</p></span> <label for="expand-ryan-hamze" role="button"><span class="more">read more</span><span class="less">read less</span></label> </div> </div> </div> </div>  </div> </div> </div> </article> <div class="container"> <div class="space-2 mx-lg-auto"> <div class="mb-3 mb-sm-5"> <h3>Related stories</h3> </div> <div class="row mb-3"> <div class="col-sm-6 col-lg-4 mb-3 mb-sm-8">  <article class="card h-100 insight-card transition-3d-hover"> <a href="https://isg-one.com/articles/ai-cuts-costs-by-30---but-75--of-customers-still-want-humans---here-s-why" > <div class="card-body"> <h3 class="h6"> AI Cuts Costs by 30%, But 75% of Customers Still Want Humans – Here’s Why </h3> <span class="font-size-1 link">Learn More <i class="fas fa-angle-right fa-sm ml-1"></i></span> </div> </a> </article>  </div> <div 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