New Research from Elastic Finds Conversational Search Could Yield Staggering Productivity Returns

New research by Elastic (NYSE: ESTC), the company behind Elasticsearch, found nearly all (99%) global IT decision makers, regardless of region or industry, recognize generative AI’s (GenAI) transformative potential to influence change within their organizations. However, early adoption continues to be slowed by chaotic data estates, search challenges, and fears around privacy and security, regulation, and internal skills gaps.

Despite these headwinds, the report - The Elastic Generative AI Report: One Year On, Identifying the Impact and Challenges of Early Generative AI Implementation Worldwide - found most IT decision makers (88%) are eyeing increased investments in GenAI in 2024 and beyond. This points to optimism that these technologies are poised to drive operational efficiencies and productivity, accelerate decision-making, improve customer engagement, and bolster security postures.

“In a little more than 12 months, the disruptive potential of GenAI has shifted from reverie to reality, capturing the imaginations and budgets of IT and data leaders,” said Matt Riley, GVP & General Manager of Search at Elastic. “While data may fuel this technology, search is the engine that powers its effectiveness. Unsurprisingly, businesses that adopt search-powered GenAI quickest - grounded by business context - will lead and uncover the insights needed to securely innovate, build more efficient businesses, and pioneer new customer experiences.”

“Generative AI is still an emerging technology, but it already promises to disrupt how organizations operate and engage with customers and employees,” said Jason Bloomberg, Managing Director of analyst firm Intellyx. “In particular, GenAI is transforming the data management, security, and search challenges many businesses continue to face. Thoughtful application of this new technology will help them better anticipate customer needs and differentiate themselves from their competition.”

Key Findings

There’s high enthusiasm for GenAI across regions and industries, but key concerns stifle operationalization strategies

• Across verticals, GenAI is poised to deliver tangible benefits for organizations
  • More than half of respondents (57%) anticipate it will improve resource (i.e., staff time, better costs) and operational efficiency and productivity, improve customer experience (50%), and lead to more accurate decision-making (48%)
• However, despite early interest and planned investment, internal and external roadblocks threaten to slow GenAI adoption
  • Nearly 9 of 10 organizations anticipate budgets for GenAI will increase over the next three years, despite nearly all respondents reporting adoption is being slowed, primarily by fears around the security and privacy of the technologies (40%), regulation issues (37%), and the skills gap to implement the technologies in house (36%)
  • While a skills gap may continue to slow GenAI adoption, 4 of 10 respondents believe it will eventually help upskill and educate employees

Siloed data ecosystems continue to expand in size and complexity, complicating security, visibility, and real-time analysis