Information Firms Lead in GenAI ROI, With 65% Reporting Positive Results

While the buzz around generative artificial intelligence (GenAI) continues to captivate boardrooms, a new analysis reveals a divergence in its financial impact across industries. In short: some sectors reap substantial returns while others lag despite significant adoption. The latest report from PYMNTS, “Generative AI’s ROI Divide: How Leading Industries Are Innovating While Others Lag,” based on surveys of 540 C-suite executives conducted between March and November 2024, paints a nuanced picture of GenAI’s enterprise application, highlighting key use cases, ROI outcomes and the challenges hindering broader success. The findings suggest that strategic alignment and customization are proving crucial in translating GenAI’s potential into tangible financial gains.

The report underscores the information sector’s commanding lead in realizing very positive ROI from GenAI adoption, with a remarkable 65% of firms reporting such success. This dominance is attributed to the sector’s ability to leverage GenAI for targeted, high-impact applications like content generation (71% adoption) and automated cybersecurity systems (57% adoption), showcasing the technology’s versatility. Information firms are also significantly more likely (49%) to move beyond standard, off-the-shelf solutions, opting for customized tools and even proprietary large language models (LLMs). In contrast, industries like retail, despite widespread adoption of GenAI for customer-facing chatbots (100% of surveyed firms use general-purpose conversational AI), report a significantly lower rate of very positive ROI at just 17%. This disparity is likely due to a heavier reliance on baseline models and underexplored opportunities for customization in areas such as personalized product recommendations and supply chain optimization.

Meanwhile, the manufacturing and construction sectors, often associated with manual labor, are finding success in leveraging GenAI to drive efficiency and innovation, with 37% of construction firms and a significant portion of manufacturing firms reporting very positive ROI. Manufacturing firms particularly excel in optimizing production processes through GenAI-generated feedback (56% adoption).

Key data points from the report include:

The information sector leads in GenAI ROI: 65% of information firms surveyed reported very positive ROI from their GenAI deployments, significantly outpacing other sectors. This success stems from the strategic deployment of GenAI for high-impact tasks like content creation and cybersecurity.

Retail’s chatbot focus yields lower ROI: While 100% of retail firms utilize general-purpose conversational AI for customer engagement, only 17% report very positive ROI, suggesting that reliance on baseline models limits more transformative financial returns.

Manufacturing and construction prioritize efficiency and innovation: These sectors show strong adoption of GenAI for tasks such as production process feedback (manufacturing, 56%) and product innovation (construction, 44%; manufacturing, 59%), highlighting a focus on core operational improvements.

Beyond the ROI figures, the report reveals a pervasive optimism among C-suite executives regarding GenAI’s transformative potential, with over 90% in retail, education, and information saying it increases productivity. This is translating into budgetary plans, with nearly half of surveyed organizations intending to increase their GenAI budgets in anticipation of full integration within seven to eight years.

Higher-performing sectors like information and construction tend to allocate more resources to GenAI, suggesting a correlation between investment in targeted strategies and stronger returns. For sectors currently lagging in ROI, the report suggests that aligning increased spending with more ambitious, customized use cases will be crucial to unlocking similar financial benefits. The findings underscore that while GenAI offers significant opportunities, a strategic and tailored approach, moving beyond basic applications, is essential for converting technological adoption into meaningful financial success.

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