In Graphic Detail: AI adoption increases, but U.S. consumers are still wary

For better or worse, generative AI has become a tech the industry can’t escape. Whether it’s taking over processes, agentic assistants or a way to scale productivity and creativity, AI is usually involved somehow. Now that generative AI is in its hype mode, the next stage of the AI journey is anyone’s guess.

To understand how we got here, Digiday has charted the rise of generative AI, big tech’s investment into AI as well as top use cases and consumer sentiment.

AI was always important, but generative AI has changed the game

While AI is having a moment right now, let’s not forget the actual tech was being used for a long time. Think trend predictions, sorting data, improving marketing or even algorithms — all things most agencies relied on, but never thought twice about how it was actually done. The tech was used by experts, but adoption across entire companies was still relatively slow.

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Confessions: How an indie agency’s over-reliance on AI drove it out of business

Despite success stories at Unilever and Kellanova, skepticism about generative AI is mounting across the wider business world. An MIT study published last week, which estimated that 95% of organizations that tried to implement generative AI into their workflows found zero return on their investment, sent AI-related stocks tumbling.

Small businesses, including agencies of every stripe, are most at risk from the negatives of AI adoption, from rogue use of tools (a recent IBM study found only 37% of organizations are tracking employee use of AI) to the consequences for their business models. Clients have always wanted more work for less money; now they expect agencies to deliver on that promise through technology. But when tools like ChatGPT aren’t up to the task, it’s up to overworked agency staff to fill in the gaps.

In this candid conversation, an indie agency exec talks us through the collapse of their agency, which slid into administration in July after its founder and creative figurehead became convinced that generative AI tools would provide a silver bullet solution for existential business threats.

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