Energized by the hype around generative AI, enterprises are aggressively pursuing practical applications of this new technology while remaining cautious about the risks, according to ISG. ISG research shows 85% of companies surveyed believe investments in generative AI within the next 24 months are important or critical. However, rather than taking a “blank slate” approach, companies are asking their providers to devise ways that generative AI can be applied to providers’ existing services, such as call center operations. One of the biggest concerns about generative AI is the potential for misinterpretation. When generative AI can’t generate a correct answer to a question, it starts to invent one in a process called “artificial intelligence hallucination.” Leaders also worry about data quality and the potential for models to get corrupted or poisoned – either intentionally or accidentally – resulting in a bad outcome. Therefore, while organizations see the potential of generative AI, they still don’t yet fully know how to handle the risks. Most organizations today operate in a much more dynamic environment and generative AI opens the door to potential ethical challenges. Most organizations lack full visibility to all the risks and need support beyond technical development. “Our research shows a real sense of urgency in the market,” said Prashant Kelker, partner and chief strategy officer with ISG.

Full research : Companies still don’t know how to handle generative AI risks.