Growing Up: Navigating Gen AI’s Early Years
A Closer Look at GBK and Wharton’s New Report on AI’s Role in Transforming Business and Marketing
Today GBK is excited to announce the release of our latest report, Growing Up: Navigating Gen AI’s Early Years, developed in collaboration with AI at Wharton, a research center at the Wharton School of the University of Pennsylvania. Based on a survey with 800 senior leaders from top U.S. enterprises (each with sales over $50M), the report reveals just how rapidly Generative AI (Gen AI) adoption and use cases are accelerating.
The comprehensive study charts the evolution of Gen AI—from its infancy and initial experimentation to now intense focus by enterprises on delivering tangible ROI with more practical use cases and applications. As a second wave to our initial report last year, it offers a deeper perspective than most studies: sharing valuable year-over-year insights on adoption and level of investment by company size, industry and functional area, emerging applications, as well as overall sentiment by business leaders on Gen AI.
“We describe the evolution of Gen AI using a childhood metaphor—moving from its infancy in 2023 to today, where companies are doubling down on more focused implementations aimed at realizing ROI,” said Stefano Puntoni, Sebastian S. Kresge Professor of Marketing at the Wharton School and Co-Director of AI at Wharton. “Companies are only just now scratching the surface of what's possible, as they seek measurable outcomes and reflect on the future of AI, which already has the fastest technology adoption curve in human history.”
GROWING UP: NAVIGATING GEN AI’S EARLY YEARS -> CLICK HERE TO GET THE FULL REPORT
“We describe the evolution of Gen AI using a childhood metaphor—moving from its infancy to today where companies are doubling down on more focused implementations to realize ROI.” - Prof. Stefano Puntoni, Co-Director of AI at Wharton
In this blog, we share a high-level snapshot of some of the most interesting findings from the report, but we encourage you to download the full study linked here, packed with deeper insights and learnings for marketers and other cross-functional leaders.
Before we dive in, let's take a quick look at some of the standout stats from our report:
Nearly 3 in 4 leaders (72%) report using Gen AI at least once a week, up from 37% in 2023.
Spending on Gen AI has increased by 130%, with 72% of companies planning further investment in 2025.
Investment in Gen AI isn’t just in technology: about a third goes to technology, while the rest is allocated to training (a fifth to upskilling existing workforce), onboarding new employees (another fifth), and consultants (about a quarter).
90% of leaders agree that AI enhances employee skills, up from 80% in 2023, while concerns about job replacement have eased, dropping from 75% to 72%.
AI adoption in Marketing and Sales, previously lagging in 2023, has tripled—jumping from the lowest adoption rate of 20% to 62% in 2024, while AI usage in Operations, HR, Purchasing, and Procurement doubled.
These stats tell a clear story. The rapid rise in Gen AI adoption and experimentation has driven a significant increase in AI spending and spreading throughout enterprises. Now, the emphasis is shifting towards identifying scalable use cases that deliver the most impact to the business and measurable ROI. Companies must not only prove Gen AI’s value but also establish the right organizational strategies, data governance, and frameworks to ensure and sustain long-term success.
The Shift from Experimentation to Everyday Use
In 2023, Gen AI was still in its early infancy. Only 37% of respondents were using it weekly, and while 78% of leaders expected AI to impact core functions like data analysis and research, usage remained largely experimental. Companies were just beginning to navigate early challenges, with 57% anticipating a slowdown in AI spending growth as they sought measurable returns on their AI investments.
Fast-forward to 2024, and the landscape has shifted dramatically. Nearly 72% of leaders now use Gen AI weekly, with AI spending up 130% since 2023. The focus has transitioned from initial curiosity to practical application, with 55% of organizations actively employing Gen AI across functions like coding, data analysis, content creation, and legal contract drafting. While challenges around accuracy, privacy, integration, and ethics remain, they have eased slightly compared to last year. Notably, 58% of respondents rated Gen AI’s performance as 'great.'
“This transition from experimentation to widespread usage marks a pivotal moment,” said Puntoni. “Companies are now leveraging AI for tangible business outcomes, but they’re also facing new challenges in governance and integration as they scale AI solutions across the enterprise.”
“The transition from experimentation to widespread usage marks a pivotal moment. Companies are now leveraging AI for tangible business outcomes, but they’re also facing new challenges in governance and integration as they scale AI solutions across the enterprise.” - Prof. Stefano Puntoni
AI Adoption Spikes Across Functions
The 2024 study revealed that AI adoption has surged across various business functions. IT remains a leader in AI usage, but other departments are now catching up. Notably, AI usage in Operations more than doubled —rising from 16% in 2023 to 50% in 2024. Procurement also saw significant growth, with usage increasing from 50% to 94%. Product Development saw AI adoption grow from 40% to 78%, reflecting a trend of broader and deeper integration across the enterprise.
Marketing and Sales Leaders Embrace Gen AI
Our study also found that the fastest adoption rate for Gen AI out of any functional area was Marketing and Sales leaders. Nearly two-thirds (62%) of marketing leaders now use Gen AI multiple times per week, compared to just 20% in our initial report last year.
This shift highlights a fundamental change in how marketing departments view AI’s potential. It’s also a sharp contrast to earlier findings that showed Marketing and Sales lagging behind all other departments, not only in adoption but also in their understanding of Gen AI—a gap Stefano and I explored in our Harvard Business Review article.
At that time, only 21% of Marketing and Sales leaders had substantial knowledge of generative AI, well behind HR (44%), purchasing (57%), and product/engineering (60%)—and far behind IT leaders, 80% of whom were well-versed in the technology.
While this gap was concerning to say the least, the initial caution by marketers has now been replaced with curiosity—and perhaps even overeagerness to catch up—as Marketing and Sales teams quickly integrate Gen AI into their strategies and daily execution.
“As marketers move beyond experimentation to targeted AI use, it's critical to view AI as a tool—not a strategy,” said Jeremy Korst, Partner with GBK. “The focus should be on cutting through vendor hype to discover AI solutions that genuinely enhance brand value and deepen customer connections.”
Evolving Employee Perception on Impact of AI
As AI transforms the way we work across marketing and other functions, employee perceptions are also evolving. In fact, 9 out of 10 of leaders agreed that AI enhances employee skills, up from 80% in 2023 according to our study. Meanwhile, concerns about job replacement have decreased.
“There’s a clear shift in mindset,” said Puntoni. “Leaders are increasingly viewing AI as a tool to augment employee capabilities rather than replace them, with a focus on enhancing productivity and improving work quality.”
As AI gains traction, it's not just about replacing old tools but transforming how teams operate across departments. We're seeing a shift from cautious experimentation to practical application, with AI gradually moving from the edges of individual use to becoming a central part of business strategies.
For instance, marketing leaders are leveraging Gen AI to achieve measurable outcomes—moving from initial applications like data-driven insights, content creation, and personalized customer interactions to custom LLMs and more sophisticated, AI-driven approaches.
“We continue to see investment in Gen AI grow across industries, but ensuring measurable ROI is now a key factor for sustained impact,” said Mary Purk, Executive Director, AI at Wharton. “Businesses must refine their AI strategies not only to integrate AI across functions but also to demonstrate its value. The real competitive edge will come from those who can scale AI effectively and confidently.”
Top-Down Leadership and Bottom-Up Experimentation
As companies refine their AI strategies, it's not just about scaling it effectively, but also creating a holistic strategy for how marketing and other departments can fully tap into its potential. Success with Gen AI requires more than just investment; it demands a cultural shift across the organization, from the top down and the bottom up.
Another interesting finding from our study was the sharp rise in Gen AI usage among senior leaders —with 69% of senior executives or management now using Gen AI weekly, up from just 26% last year.
This increased adoption in Gen AI is helping to drive a broader wave of investment: AI spending has surged by 130%, with 3 in 4 leaders planning additional investments in 2025. But in contrast to last year, these investments are no longer confined to technology alone.
Only about a third of AI budgets go to technology, while a fifth is dedicated to upskilling the current workforce, another fifth to onboarding new hires, and about a quarter to consulting services.
"This is an area I find fascinating because you're seeing pressures in two directions," Puntoni. "There’s top-down leadership—setting the vision and ensuring safe deployment. But that’s not enough. You also need bottom-up energy, where people experiment and discover AI’s potential. It’s about finding the right balance between top-down and bottom-up efforts. That’s the sweet spot."
“Organizations need both top-down leadership—setting the vision and ensuring safe deployment of Gen AI—as well as bottom-up energy, where people experiment and discover AI’s potential. It’s about finding the right balance.. or sweet spot.” - Prof. Stefano Puntoni
Looking Ahead: 2025 and Beyond
As Gen AI continues to mature, companies are gearing up for the next phase. With 72% of respondents planning to boost AI spending in 2025, many are expanding their AI teams, with nearly half appointing Chief AI Officers (CAIOs) to lead these efforts. Future growth hinges on demonstrating clear returns, as businesses refine their AI strategies and aim to drive meaningful impact across departments.
The rapid rise in Gen AI adoption among marketers, coupled with an urgency to catch up with other functional peers, has also unveiled a Pandora’s box of challenges that many firms aren't fully equipped to handle.
While investment in Gen AI is expanding at breakneck speed, we're only just now in the early stages of realizing its potential. Companies face the critical task of creating stronger guardrails around data governance, privacy, and ethical AI use as they aim to tap into Gen AI's transformative abilities.
As Professor Puntoni notes, “striking the right balance between human creativity and AI’s potential is crucial for maximizing ROI and allowing people to concentrate on higher-value tasks. While AI can analyze mountains of data in seconds, human oversight and asking the right questions is vital to ensure accurate and responsible use of AI-generated outputs.”
Looking for more insights on emerging trends with generative AI and how you can maximize impact for your business? Click here to get a complimentary copy of our full report.