Generative AI: Tailored for Every Industry

The emergence of Generative AI (GenAI) has unlocked advanced AI capabilities for businesses that were once considered distant possibilities and enterprises across sectors are empowered with innovative working methods that are transforming the global business landscape. According to a recent SAS study, while China leads in adoption rates with 83% of organizations using GenAI, the United States leads in maturity, with 24% of organizations fully implementing GenAI technologies. This disparity underscores a crucial insight: higher adoption rates do not necessarily translate to effective implementation or improved returns.

However, this discrepancy gap is expected to be narrowed significantly with the rapid evolution of GenAI, which will reshape how businesses operate in the coming years. By 2027, Gartner projects that over 50% of the Generative AI models utilized by enterprises will be tailored specifically to an industry or a particular business function. This represents a dramatic increase from the mere 1% of such specialized models in 2023.

The current shift indicates a growing acknowledgment of the significance of domain-specific AI solutions. These solutions will be specifically crafted to tackle the distinctive challenges and opportunities within individual industries and business sectors. As these customized models become more prevalent, they are anticipated to enhance operational efficiency, accuracy, and ingenuity and drive innovation, enabling businesses to harness AI more precisely and effectively. For Instance, especially in taxation, a language model trained on GST laws and regulations can automate the creation of show-cause notices for tax violations.

The system examines specific tax infractions and generates precise, demand letters by referencing relevant GST acts and rules. This approach streamlines tax enforcement processes, reduces manual effort, and enhances the scalability and transparency of tax administration.

Industry-Specific Applications

The recent survey conducted by SAS and Coleman Parkes surveyed 1,600 decision-makers across key global markets and industries, including banking, insurance, the public sector, life sciences, healthcare, telecommunications, manufacturing, retail, energy and utilities, and professional services, revealed the diverse ways GenAI is being integrated into business processes.

The telecommunications industry is at the forefront of GenAI adoption, with our study reflecting that 29% of enterprises in the telecom sector already use GenAI in their daily operations.  

Large Language Models can also accelerate responses to public inquiries about historical government department orders. By automating information extraction and interpretation from scanned PDF documents, response times are minimized, errors are reduced, and resource allocation is optimized. This enhances governmental transparency and efficiency in public communication and fosters greater engagement and trust.

The banking and insurance sectors have adopted GenAI to revolutionize their operations. According to the survey, 17% of banks worldwide have incorporated GenAI into their core business processes, while 11% of insurance companies have integrated GenAI into their core business processes.

AT SAS, we are helping a health insurer that mandates comprehensive diagnostic tests for insured individuals at age 40, impacting around 4 million customers. This initiative focuses on extracting and analyzing data from diverse diagnostic reports to classify health parameters. It enables personalized health communication, proactive risk management, and targeted discount strategies. This data-driven approach enhances customer engagement, improves health outcomes, and informs underwriting and actuarial decisions to manage emerging risks effectively.

Challenges and Future Outlook

Despite the promising applications and benefits, organizations face several challenges in implementing GenAI. A significant barrier is the lack of a clear GenAI strategy, with only 9% of leaders familiar with their organization’s adoption of GenAI. Data privacy, data security, and regulatory compliance are also major concerns. Only a tenth of organizations feel fully prepared to comply with upcoming AI regulations. However, the potential benefits are compelling. According to SAS study, Early adopters report improved employee experience (89%), cost savings (82%), and higher customer retention (82%). As organizations navigate the complexity of real-world implementations, it becomes crucial to purposefully implement and deliver repeatable and trusted business results from GenAI.

Conclusion

Generative AI is reshaping industries by offering unparalleled efficiency, personalization, and strategic foresight opportunities. It is crucial, therefore, for enterprises to understand the unique applications and benefits of GenAI across different functions and roles to better position themselves to harness its full potential, driving innovation and growth in an increasingly competitive market.

By Prashant Rai, AI & ML Specialist, SAS