Manufacturing and healthcare industries lag in genAI expertise: report

Leaders in manufacturing, healthcare and the public sector are most likely to highlight insufficient internal expertise as a barrier to implementing generative AI, according to a July survey.

The research, conducted by data and AI solutions provider SAS in collaboration with Coleman Parkes, surveyed decision-makers in genAI strategy or data analytics across a range of countries and sectors – from banking and insurance to telco, retail, and the public sector.

Close to half (48%) of decision-makers in manufacturing reported that a lack of internal expertise was holding them back from implementing the tech, compared to the cross-sector average of 39%. Healthcare and the public sector followed on 43%.

This skills gap may be having a demonstrable knock-on effect on genAI adoption, with these three sectors also reporting the lowest levels of usage among the industries surveyed.

Just 2 in 5 manufacturers are implementing genAI

When surveyed on the extent to which their organisation is using genAI, just two-fifths (40%) of decision-makers at manufacturing companies said that they were employing it: the lowest level of usage among all industries.

Public sector decision-makers reported similarly low levels at just 44%, followed by healthcare at 46%, several percentage points below the average of 54% of all organisations surveyed.

Conversely, telco organisations had the highest level of genAI adoption at 70% – and were also the industry least likely to cite internal expertise as a barrier to adoption, with just 24% reporting this as an issue. This indicates a clear link between internal skills and confidence with regard to genAI and how well companies have integrated the technology.

Image: SAS & Coleman Parkes

Even in companies that are using genAI, decision-makers lack expertise

SAS also found that many decision-makers admit to a low personal understanding of genAI: just 7% of respondents say that they “completely” understand it and its potential impacts on business processes, while a further 12% understand it “well”. Two-fifths (42%) have a “moderate” understanding, while 40% cite little understanding at all.

According to SAS’ research, even within companies that say they have fully implemented genAI more than a quarter (27%) of decision-makers cite insufficient internal expertise as a barrier. The figure rises to 29% among organisations that are using genAI but have yet to fully implement it – and 51% among organisations that plan to implement genAI within the next two years.

This may have knock-on effects when it comes to realising the potential benefits. For example, 47% of respondents say that they foresee, or have encountered, challenges in transitioning genAI from a conceptual phase to a practical use. Having a thorough understanding of the technology is no doubt valuable in identifying how it can best be applied and deliver business returns.

As the report author writes, “For many organizations, it really comes down to this: In-house GenAI expertise is lacking. As HR departments encounter a scarcity of suitable hires, organizations worry that they do not have access to the necessary skills to make the most of their GenAI investment.

“…As organizations continue to experiment with GenAI, real business value will come down to identifying real-world use cases that deliver trusted and scalable value.”

Sales and marketing report the highest level of genAI usage

The research also sheds light on which internal departments have the highest level of genAI integration.

According to the report, sales departments are seeing the greatest deployment, with a “massive” 86% of respondents either already deploying genAI within sales departments or planning to do so. The adoption within marketing departments ranks a close second at 85%.

Adoption within IT departments is also high at 81%, and finance departments at 75%. The report notes that, “Even in those departments where GenAI adoption is least likely, the majority are still either using or planning to bring it on board; 59% in HR and 49% in legal departments. A fifth of the workforce (20%) currently use GenAI tools to generate text, images or video every day.”

Close to half (46%) of respondents to SAS’ survey say that they are planning to enlist third-party support to integrate and scale genAI within their organisation. Even with this in mind, it’s important for businesses to bridge the gap in skills and understanding that exists with genAI – including at the highest levels of senior leadership – in order to ensure that organisations can make a solid business case for implementing the tech, measure practical outcomes, and generate a true return.