Enterprises are rapidly adopting Generative AI (Gen AI) in various business functions, with its use in operations, purchasing, and procurement doubling since 2023, according to a study by the University of Pennsylvania. The research, titled “Growing Up: Navigating Gen AI’s Early Years,” surveyed more than 800 enterprise decision-makers across the United States. Stefano Puntoni, Professor of Marketing and Co-Director of AI at the University of Pennsylvania, stated that Gen AI has quickly evolved from an experimental tool to a core driver of business transformation.
Companies are now embedding AI into their strategies to scale growth, streamline operations, and enhance decision-making. The study found that nearly 3 in 4 leaders (72 percent) report using Gen AI at least once a week, up from 37 percent in 2023. AI adoption in Marketing and Sales tripled from 20 percent in 2023 to 62 percent in 2024, while usage in Operations, HR, Purchasing, and Procurement doubled.
Spending on AI has increased by 130 percent, with 72 percent of companies planning further investment in 2025. Businesses are actively using Gen AI across multiple functions, such as coding, data analysis, idea generation, content creation, and legal contract generation.
Gen AI reshapes business operations
Nearly half of organizations are hiring Chief AI Officers (CAIOs) to lead strategic initiatives. A banking leader told the surveyors that the biggest impact of Gen AI will be to augment capabilities, automate routine tasks, and provide 24/7 customer support, allowing employees to focus on customer empathy and complex problem-solving. Mary Purk, Executive Director of AI at the University of Pennsylvania, emphasized that businesses must refine their AI strategies to integrate AI across functions and demonstrate its value.
The real competitive edge will come from those who can scale AI effectively and confidently. The study predicts that the Gen AI market for IT compute, storage, and networking infrastructure suppliers is becoming stronger and will be sustained. Gen AI budgets are expected to rise across all functional areas over the next 2 to 5 years, highlighting the need to show tangible value from products used in Gen AI applications.
Today, Gen AI receives the highest performance scores for data analysis, idea generation, legal contract generation, fraud detection, and email generation. The study forecasts that these areas will be where Gen AI product proliferation is most likely to occur. The leading AI vendors in three to five years are predicted to be Microsoft/Azure and Google GCP in equal first place (47 percent), AWS third (33 percent), followed by OpenAI, Apple, IBM, and Meta.
