Conversations for Tomorrow #9: Generative AI

Generative AI today is at the threshold of an outburst of creative exuberance. The coverfor this edition of Conversations for Tomorrow represents the myriad possibilities thatarise at the intersection of light and shadow – not too dissimilar to the possibilities thatgenerative AI creates. At the same time, it also highlights fleeting patterns and darkspots which one must bear in mind as they move forward. The content and design ofthis issue reflect the opportunities, the challenges, and the risks that generative AI isnow throwing up in front of organizations. But adopters have also had to acknowledgeAI’s significant carbon footprint. Overone-third of organizations in our researchare already tracking their Gen AI carbonemissions. At Capgemini, wehelp organizationsprepare for tomorrowby distilling the Foreword unique insights and perspectives of leadersfrom global business, academia, the startupcommunity, and wider society. Organizations globally are rapidlyembedding Gen AI across functions, witha ripple effect for wider society. In thisedition of Conversations for Tomorrow wefocus on this AI-generated future. Gener(AI)ting the Future In Conversations for Tomorrow, theCapgemini Research Institute identifiesthe strategic imperatives for the future ofbusiness and the society it serves. In thisninth edition of the journal, among otherareas, we explore: We would like to thank all the leaders andexperts who have enriched this edition ofthe journal with their insights. By sharingthe perspectives of such a diverse range ofaccomplished individuals, we aim to presenta comprehensive overview of Gen AI and itscontribution to generating a new future. •The rapid rise of generative AI (Gen AI)•The rate at which organizations acrossindustries are adopting the technology•The use cases that it enables•Its impact on sustainability journeys•How it is likely to change work and theworkforce•How and why it needs to be regulated •The CEO of one of the hottest AI startups•One of the most-respected AI scientistsglobally, who is also a board member atAmazon•A former member of the EuropeanParliament who played a key role in theEU AI Act•A leading professor at Stanford•Senior executives from Adobe,Salesforce, OECD, Telefónica, and ItaúUnibanco•Capgemini’s own subject-matter experts Our annual research into the state of GenAI shows that organizations are embracinggenerative AI, this is reflected by an uptick ininvestment levels. The vast majority (80%) oforganizations in our survey increased theirinvestment in 2023; 20% maintained theirinvestment levels; and no organization hasdecreased its investment in Gen AI from lastyear. Pulling together such a wide range of viewswas an extremely instructive exercise forus. We hope you enjoy reading this editionas much as we enjoyed putting it togetherfor you. In the past year, every organizationaldomain, from sales and marketing to IT,operations, R&D, finance, and logistics, hasseen an increase in the rate of adoption.Early adopters are seeing benefits fromimproved operational efficiency toenhanced customer experience. Moreover,generative AI adoption among employeesis robust in most organizations, with themajority allowing its use. Contents P.16Arthur MenschCEOMistral AI P.16Aiman EzzatCEOCapgemini P.26P.26EXECUTIVECONVERSATIONSWITH… P.64Clara ShihCEO, Salesforce AI P.28Erik BrynjolfssonProfessor, Stanford P.76Andrew NgCEO, LandingAI P.36 Audrey PlonkDeputy Director, Directoratefor Science, Technology andInnovation (STI), OECD P.86Chema AlonsoChief Digital Officer,Telefónica P.44 Dragoş TudoracheFormer MEP, EU AI Actco-rapporteur, EuropeanParliament P.54Scott BelskyChief Strategy Officer,Adobe P.94 Ricardo GuerraChief Information Officer,Itaú Unibanco P.104P.104PERSPECTIVESFROM CAPGEMINI GENERATIVE AI FORMANAGEMENT P.106Elisa FarriandGabriele Rosanifrom The Management Labby Capgemini Invent P. 130P. 130INSIGHTSFROM THE CAPGEMINIRESEARCH INSTITUTE P.131Gen AI in enterpriseThe rise of generative AI investments inorganizations GENERATIVE AI: THEART OF THE POSSIBLE P.138Gen AI in software engineeringHow software engineering is beingshaped by generative AI P.116Robert EngelsHead of Generative AI Lab,Capgemini OPERATIONAL AI ISCHANGING HOW WE LOOKAT DATA P.124 Anne Laure ThibaudExecutive Vice President, Data,AI & Analytics Group OfferLeader, CapgeminiandSteve JonesExecutive Vice President, DataDriven Business & Gen AI,Capgemini ExecutiveSummary Generative AI (Gen AI) is making rapidinroads into organizational structures,transforming them rapidly from the insideout. As businesses across industries beginto implement Gen AI, several key themesemerge that highlight its potential to impactorganizations, workforce, and society. Andrew Ng, CEO, LandingAI, emphasizes theboost to productivity: “For many jobs, AI willonly automate or augment 20-30% of tasks.So, there's a huge productivity boost, butpeople are still required for the remaining70% of the role.” Gen AI has th