According to the report, a whopping 66 per cent of executives are unhappy or unsure about their progress on AI and GenAI so far. They blame three main reasons for their failure: a shortage of talent and skills (62 per cent), a lack of clear vision and strategy (47 per cent), and a disregard for ethical and responsible use of AI and GenAI (42 per cent).

BCG's boss Christoph Schweizer said: "Almost every boss, myself included, has had a hard time keeping up with GenAI. When technology is changing so fast, it can be tempting to sit back and watch. But with GenAI, the early winners are experimenting, learning, and building at scale."

The report, titled BCG AI Radar: From Potential to Profit with GenAI, is based on a survey of 1,406 top dogs in 50 markets and 14 industries. A staggering 71 per cent of them say they plan to splash more cash on tech in 2024 - an 11-point jump from 2023 - and even more (85 per cent) plan to boost their spending on AI and GenAI. More than half (54 per cent) of them already expect AI to save them money this year, mainly by making their operations, customer service, and IT more efficient.

BCG X and a coauthor of the research Sylvain Duranton said Generative AI is radically reshaping businesses.

"Leading companies on the GenAI front are planning to rake in up to $1 billion in productivity gains, and they are already looking at ways to reinvest into new business models and growth. This is a second chance for companies who missed the first AI wave."

Thile a few smart cookies are already reaping the rewards of AI and GenAI, others are either lagging behind or doing nothing. More than 60 per cent of those surveyed say their firms are still waiting to see how AI-specific rules and regulations will pan out, and only six per cent of companies have trained more than 25 per cent of their staff on GenAI tools so far.

According to the report, "winning" companies recognise GenAI's staying power and its potential for both boosting productivity and growing revenue. It outlines several traits that set the winners apart from the losers, such as:

Winners invest for productivity and top-line growth. Companies that plan to invest more than $50 million in AI and GenAI this year are 1.3 times more likely to see cost savings in 2024 - and 1.5 times more likely to achieve more than 10 per cent in cost savings.

Winners are systematically upskilling. Twenty-one per cent of companies spending more than $50 million on AI and GenAI this year have already trained more than a quarter of their staff.

Winners are vigilant about GenAI cost of use. Cost of use, which has serious long-term consequences, is not getting the attention it deserves. Only 19 per cent of those surveyed consider cost the top concern when choosing an AI and GenAI solution.

Winners build intentional relationships. Only three per cent of bosses consider existing partnerships a priority when looking for AI solutions.

Winners implement responsible AI (RAI) principles. Of the companies surveyed that are investing more than $50 million in AI in 2024, 27 per cent put the boss in charge of their RAI strategy (versus 14 per cent overall).

"To unlock GenAI's full potential, bosses should use it to improve efficiency of everyday tasks, reshape critical functions, and invent new business models," said Schweizer. "Doing so can increase productivity by up to 20 per cent, enhance efficiency and effectiveness by up to 50 per cent, boost revenue, and create long-term competitive advantage."