Generative AI exploded onto the scene, forcing organizations to scramble to identify opportunities, build a strategy fast and find partners to execute on pilots and use cases. Last year, our research found that many organizations were still highly immature when it came to governance for AI, architecture for building AI into the operating model, and solving for the nuts and bolts of where AI should live.
In this year's State of Generative AI report, our advisors and analysts dive into where we're seeing the market move, including use cases, spend, and adoption. We also look at where we're seeing it falter, including scaling challenges and achieving ROI. The full report is coming soon; fill out the form below to be notified when it is released. Until then, we're sharing a sneak peak of some of our top findings - check it out below.
1. First, let's look at the scale of GenAI penetration today.
- Between the third quarter of 2023 to the second quarter of 2024, there were roughly $10.7B of AI-related projects initiated by service providers. This represents a 60% trailing twelve months (TTM) growth.
- Organizations that we interviewed have on average 151 GenAI applications today, and on average estimate that they will have 356 by year-end of 2025.
- We are seeing 4.3% of IT spending on GenAI for 2024, and expect that to grow to 6.5% by year-end of 2025.
- The largest spending per use case is $2.6 million to date, impacting over 3,000 individuals per enterprise.
- Overall, GenAI adoption, spending and scaling is increasing rapidly and will continue to grow in 2025 and beyond.
2. We asked organizations which GenAI use cases they have already invested in.
Let's take a look at the top use cases that we're seeing today. In our full report, we'll also share which use cases we expect organizations to invest in during 2025 and 2026 based on the perceived value each will deliver. 
- A closer look at the "why" behind the top GenAI use cases: Efficiency was the number one motivation identified for organization's GenAI initiatives and investments.
- A closer look at the performance of the top GenAI use cases: 2025 is the year that we expect a lot of the heavy lifting will occur in terms of adoption and implementation.
- How different organizations are approaching the top GenAI use case: The largest quantity of our respondents are using a mix of off-the-shelf and custom, built in-house AI, supported by a service provider. Here's how the rest of the GenAI approaches break down:
3. We also took a look at the top inhibitors of GenAI adoption today.
Respondents were allowed multiple options, and in this preview we are simply giving the top 5 inhibitors that were chosen as the number one challenge. 
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