Enterprises are primarily in a phase of evaluation regarding generative AI adoption. According to a recent CIO/CTO forum hosted by Citigroup, many organizations are assessing the significance of generative AI for their operations. While about 20% of enterprises feel an urgent need to act to avoid disruption, the majority are either exploring use cases or adopting a wait-and-see approach.

Enterprises face several challenges in adopting generative AI, including a lack of clear understanding of the return on investment (ROI) from integrating these tools with their data, legal uncertainties regarding commercial use, and the risk of confidential data breaches. Many organizations are conducting investigations and proof of concepts to address these issues.

To manage risks associated with generative AI, enterprises should centralize governance early in the adoption process and establish a clear risk framework. This includes addressing potential data breaches and ensuring that there is a top-down approach to adopting these technologies. Organizations are encouraged to develop guardrails and maintain open communication about risks as they explore generative AI applications.