Study: The Main Advantage of Generative Artificial Intelligence is Not Cost Reduction, but Increased Ambition

The consulting firm Deloitte has published its annual report ‘Technology Trends’, which aims to identify existing, new, and future trends among technology companies, and in this, the 15th edition, the emphasis is placed on the growing need for companies to reconcile their existing tactical needs with future strategic ambitions.

Additionally, the report highlights that artificial intelligence, including generative artificial intelligence, can free employees from mundane daily tasks and allow them to focus on future-oriented tasks that will produce greater value, stating that in the age of creative machines, creative people are more important than ever.

– New technology is at the center of events, but to fully leverage the benefits of this revolution, we must not stop at just one technological domain as the sole future hero. Generative artificial intelligence, combined with advances in spatial networks, industrial metaverse, and specialized hardware, fundamentally changes the possibilities for transforming industries. However, in this case, it is not just about technology; it is about empowering engineers, fostering responsible innovation, and constantly staying one step ahead of next-generation cyber threats. These are not isolated trends; they are a united force that will launch us into a new era of technological growth. Leaders will seize this moment to lay deep foundations that will remain resilient even as the environment continues to change, says Sanjin Katinić, a partner in Deloitte’s business consulting department.

As they stated, augmented and virtual reality for consumer purposes have attracted much attention, but these technologies have the most impact in the industrial environment. Namely, companies are using the industrial metaverse for digital twins, space simulations, augmented reality work instructions, and shared digital spaces that make factories and businesses safer and more efficient. Available, high-quality 3D products will enable the emergence of a business spatial network, where an additional digital dimension of reality will accelerate existing ways of working. Over time, autonomous machines, advanced networks, and increasingly simpler ways of interaction will translate into a future ‘that goes beyond the screen’.

What is sought is what is profitable

Companies are quickly moving from words to actions regarding generative artificial intelligence and are largely experimenting. Consequently, leaders are no longer opting only for what is possible but for what is profitable. Furthermore, they are laying solid foundations and prioritizing data modernization, identity management, access and consumption, hybrid architectures, and monitoring and measurability. Leaders conclude that the main advantage of generative artificial intelligence, in a strategic sense, is not cost reduction but increased ambition.

Although cloud computing services still provide more than enough functionality for most regular business operations, their latest use cases such as deep learning, complex simulations, and digital twins require highly sophisticated coding and computing power. Leaders among companies are using a heterogeneous mix of hybrid architectures, private and public clouds, very large, niche, and edge platforms to maximize their existing investments. The next step: classical computing further enhanced by rapidly evolving ‘post-digital’ paradigms such as quantum and neuromorphic computing.

Technology plays an increasingly differentiating role among most companies, but today, more than ever, the emphasis is placed on people. However, current ways of working are not fully effective. Specifically, the time spent on developing functions is declining. When it comes to companies that want to attract, retain, and employ the best people, a new trend has emerged: emphasizing the experience of development engineers, or DevEx (developer experience). This is a mindset aimed at increasing daily productivity and satisfaction of development engineers by considering all their contact with the organization. DevEx hints at a future where the offering of integrated platforms, intuitive programming tools, small project teams working together on product delivery, and cultural changes will collectively enable traditional development engineers and beginners to produce technological value.

First, the basics must be addressed

Given the increase in the number of AI-based tools, it is now easier than ever for malicious actors to impersonate others and deceive their victims. Specifically, they can use deepfakes to deceive voice and facial recognition-based access control systems and for identity theft. However, there is good news: a large number of AI and machine learning-based tools, and even quantum tools, can help in defense. Leading organizations are responding to these challenges with a combination of policies and technologies designed to enable active detection of harmful content and to educate employees about emerging risks.

After years of investing in once cutting-edge innovations, companies are faced with an increased number of core technologies, namely mainframes, networks, data centers, and other systems that urgently need modernization. Future leaders must abandon reactive and unstructured approaches to technical assignments and commit to a comprehensive framework – technical well-being. Preventive assessments of well-being allow teams to identify areas where they can continue to service their business needs and those that immediately require changes. This will enable movement towards a personalized and cost-effective response, even technologies that will help companies reduce consumption in the future.

– This year’s report reminds us of two well-established investment principles. The first is portfolio theory. Over-investing time, people, and resources in any new technology, no matter how attractive it may be, results in concentration risk and opportunity cost. It is no surprise that leaders do not put all their eggs in one basket but diversify. The second principle is the basics. We all like exponential returns, but next-generation technology requires particularly solid foundations. Today, ongoing efforts in data modernization, risk management, cloud computing, and user experience are more important than ever as they are the springboard for all future ambitions of companies. If we do not first address the basics, we risk poor final products, concludes Anamarija Mlinarić, head of Deloitte’s regional sector for technology, media, and telecommunications.