77% of COOs Using GenAI Report Positive ROI, With Customized Tools Leading the Way

Chief operating officers (COOs) at large firms with more than $1 billion in revenue are turning to generative artificial intelligence (GenAI) for complex tasks like production management and cybersecurity.

According to a PYMNTS Intelligence report, “COOs Find the Key for a Positive ROI on GenAI: Customization,” COOs are customizing GenAI to maximize its impact. With expectations for substantial returns on investment by the decade’s end, COOs view GenAI as a key driver of future success.

Expanding Use of GenAI for High-Impact Tasks

COOs are using GenAI for more critical operations, such as production feedback and cybersecurity management. According to the report, there has been significant growth in adoption, with 57% of COOs using GenAI to monitor production in August, up from 32% in May. Similarly, the use of GenAI for automated cybersecurity systems rose from 17% to 55% in the same period, highlighting growing confidence in its ability to manage complex systems and protect against cyber threats.

In addition to high-impact functions, COOs rely on GenAI for tasks like data visualizations, workflow management and routine automation. The share of COOs using GenAI for visualizations grew from 53% to 67% between May and August, underscoring its role in improving operational efficiency across departments.

Custom GenAI Software Drives Higher ROI

Customization is key to unlocking the full potential of GenAI, with COOs who tailor software to their company’s needs reporting significantly higher returns on investment. According to the report, 46% of companies using customized GenAI tools report very positive ROI, compared to just 22% of those relying on off-the-shelf large language models (LLMs). This highlights the effectiveness of bespoke solutions in increasing GenAI’s impact.

According to the report, the trend is clear: tailored GenAI applications yield superior results. While 77% of COOs using LLMs see some positive ROI, those who customize and integrate GenAI within their operations achieve greater returns. This growing realization is driving COOs to develop systems that align with their specific business goals, increasing the chances of long-term success.

Expectations for Full GenAI Integration by 2030

Despite the growing confidence in GenAI’s capabilities, many COOs still face challenges in fully implementing the technology within their organizations. On average, COOs expect GenAI to be fully integrated into their operations by 2030, with ROI expectations rising steadily. The typical COO anticipates a very positive ROI within the next 5.6 years, a noticeable improvement from May, when the timeline was estimated at 7.8 years.

But as adoption increases, so do concerns. From May to August, the percentage of COOs reporting implementation challenges climbed from 33% to 48%, with organizational hurdles also becoming a more significant concern — up from 20% to 42%. Additionally, the proportion of COOs citing limited short-term ROI as a challenge has more than doubled, rising from 25% to 53%. These issues suggest that while expectations for GenAI’s future remain high, the road to achieving widespread, impactful deployment is challenging, requiring careful planning and resource allocation.