Wed Sep 25 08:14:27 UTC 2024: ## Generative AI: Hype Cooling, But Practical Applications Gaining Traction

**London, UK** – Despite the initial hype surrounding generative AI, many businesses are shifting their focus from experimentation to practical applications, according to Steven Webb, Chief Technology Officer for Capgemini UK. While a recent poll found that 31% of organizations increased their generative AI capabilities, Webb stresses that “the resetting of expectations” is crucial for success.

“Companies are realizing that a smart data strategy is essential for generative AI to truly benefit their business,” Webb explained. “We’re seeing a shift from proof-of-concept projects to more strategic deployments where the technology is integrated across departments and impacts productivity and operations.”

This shift is reflected in the growing number of companies rethinking their business models to accommodate generative AI, rising from 15% in 2023 to 35% currently. Additionally, 8.1% of respondents in Capgemini’s poll reported increased productivity, while 6.3% saw operational gains.

Webb emphasized that CIOs need to prioritize ethical considerations, data security, and sustainability when deploying generative AI. He advises choosing models that are tailored to specific needs rather than relying on generic large language models.

Capgemini is currently implementing a diverse range of generative AI projects, from improving customer service through chatbots to aiding complex research in medical biology. Notably, they are collaborating with a consumer goods company to develop a model that suggests recipes based on ingredients, and with Heathrow Airport to enhance customer service using AI.

Looking beyond the initial hype, Webb sees significant potential in the metaverse for business applications, particularly through digital twins. He envisions AI integration with digital twins to analyze and improve the performance of various physical systems, such as airports and production lines.

“The utility of a digital twin, coupled with AI, is incredibly powerful,” Webb stated. “It allows for efficient analysis and optimization of physical processes, giving businesses a significant edge.”

While the hype surrounding generative AI may be waning, practical applications are gaining momentum, emphasizing the need for a strategic and nuanced approach to maximize its potential.

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