AI Boosts Employee Productivity, But Revenue Gains Lag, New Google Cloud Report Finds
MOUNTAIN VIEW, CA – September 5, 2024 – While widespread hype surrounding artificial intelligence is cooling, a new report from Google Cloud reveals a pragmatic shift towards leveraging AI for tangible workplace improvements. A survey of 3,500 senior leaders at global companies generating at least $10 million in annual revenue and employing over 100 people, indicates that 70% have experienced increased employee productivity thanks to AI, though only 40% report direct revenue growth.
The findings suggest organizations are finding value in AI’s ability to streamline operations and enhance worker output, even as the promise of immediate financial returns remains largely unrealized. The report identifies marketing, security, and customer experience as key areas where AI is making a significant impact, with 55% of respondents citing AI as a useful marketing tool for tasks like data analysis, content generation, and editing. Notably, nearly 60% of executives in the media and entertainment sector reported a positive impact on their marketing efforts.
Google Cloud’s VP of global Generative AI, Oliver Parker, noted the report signals a move away from inflated expectations. “The conversation has shifted to value,” he wrote. This contrasts with recent research from MIT, wich found that despite $40 billion invested in AI by U.S. businesses, 95% have yet to see a return on investment or impact on profits.
