Current Trends in Generative AI Corporate Spending

You may like or dislike all the buzz, but it is a fact that there is a massive increase in companies investing in generative AI. It is hard to deny the potential of gen AI to enhance efficiency and companies are massively flocking to the technology. At MetaMarketing we have seen this trend for a while, and now it is confirmed in a recent study analyzing card spending in the US. The study showed that companies are significantly increasing their spending on AI vendors by 375% (!!) year-over-year in Q2 2024. Retention rates with AI vendors are high, indicating growing confidence in AI's value, particularly in foundation models like those from OpenAI, Anthropic and Mistral. Despite some AI solutions becoming more established, companies continue to experiment with new tools, evidenced by a doubling of card spend with new AI vendors.

Corporate individuals are putting the cost of an AI app on their personal credit cards. They can see it hugely benefits their work and are willing to pay for it themselves. And they are increasingly convincing their bosses to put it on AP.

What are companies spend their money on?

So what are the trends we are witnessing? The main findings are as follows:

1. Increased Investment and Retention:

• Companies are making larger and longer-term investments in AI. Specifically, the mean accounts payable (AP) spend for AI vendors rose by 375% (!) year-over-year in Q2. While many employees were initially using their personal credit cards for AI apps, they have now convinced their companies to classify it as an accounts payable expense.

• Retention rates with AI vendors are also up, with 70.4% of companies that began spending on AI in 2023 continuing to do so after 12 months. This indicates that companies are increasingly committed to their AI investments.

2. Adoption of General AI Models:

• General AI models, such as those from OpenAI, Anthropic and Mistral, are leading the list of first-time AI purchases. This suggests that teams or individuals at companies are actively using AI models into their work, both for work use and for personal use. 

3. Growth in Task-Specific AI Tools:

• Companies are increasingly purchasing AI tools for specific functions, including data analysis, reporting, and ad generation. Tools like MetaMarketing, BrandTech and Midjourney are among the AI vendors reflecting a growing reliance on AI to scale creative and analytical tasks. 

4. Experimentation and Vendor Diversity:

• Even as certain AI solutions become more entrenched, companies continue to experiment with different AI tools. This is evident from the doubling of card spend with AI vendors year-over-year, which indicates ongoing exploration of new and diverse AI technologies. At MetaMarketing we see an even faster growth with individuals in companies, prosumers, who use the app for improving their work and saving time accomplishing their jobs.

Why is spend increasing?

So, what are the reasons companies are spending more on generative AI? Let us dive into the main reasons. 

1. Efficiency Gains and Cost-Effectiveness:

   • Companies are investing more in AI primarily to unlock efficiency gains and improve productivity. AI tools such as those from MetaMarketing enable businesses to automate tasks, optimize workflows, and reduce operational costs. This is particularly appealing in an environment where companies are seeking to maximize output without necessarily increasing headcount. It is the main reason why companies work with MetaMarketing. It saves time generating reports and discovering insights. 

2. Competitive Advantage and Innovation:

   • AI is seen as a critical driver of innovation. By adopting AI technologies, companies can be faster than their competitors, develop new products, and enhance customer experiences. 

3. Scalability of Creative and Operational Functions:

   • The ability of generative AI to scale tasks —such as data analysis, content creation, and customer interactions—is another key factor. Businesses are leveraging AI to handle large volumes of creative work more quickly and consistently than human teams alone could achieve. 

4. Data-Driven Decision Making:

   • This is where MetaMarketing leads. We provide businesses with powerful tools for data analysis, insights and action generation, enabling more informed decision-making. Companies are spending on MetaMarketing and its competitors to automatically generate insights from their data, formulate action points and predictions, which leads to better strategies and improved outcomes.

Has your company evaluated the potential of generative AI to enhance your operations? At MetaMarketing, we can help with benchmarking the use of generative AI in your business, providing insights into how your organization compares to industry leaders. Have your trials with generative AI resulted in measurable successes, or are you still exploring its possibilities? We invite you to reflect on your current position and consider the strategic impact of generative AI to drive productivity and growth in your business.