Generative AI grows 17% in 2024, however information high quality plummets: Key findings from Appen’s State of AI Report

A new report from AI information supplier Appen reveals that firms are struggling to supply and handle the high-quality information wanted to energy AI techniques as synthetic intelligence expands into enterprise operations.

Appen’s 2024 State of AI report, which surveyed over 500 U.S. IT decision-makers, reveals that generative AI adoption surged 17% up to now 12 months; nonetheless, organizations now confront important hurdles in information preparation and high quality assurance. The report exhibits a ten% year-over-year improve in bottlenecks associated to sourcing, cleansing, and labeling information, underscoring the complexities of constructing and sustaining efficient AI fashions.

Si Chen, Head of Technique at Appen, defined in an interview with VentureBeat: “As AI models tackle more complex and specialised problems, the data requirements also change,” she stated. “Companies are finding that just having lots of data is no longer enough. To fine-tune a model, data needs to be extremely high-quality, meaning that it is accurate, diverse, properly labelled, and tailored to the specific AI use case.”

Whereas the potential of AI continues to develop, the report identifies a number of key areas the place firms are encountering obstacles. Under are the highest 5 takeaways from Appen’s 2024 State of AI report:

1. Generative AI adoption is hovering — however so are information challenges

The adoption of generative AI (GenAI) has grown by a powerful 17% in 2024, pushed by developments in massive language fashions (LLMs) that enable companies to automate duties throughout a variety of use instances. From IT operations to R&D, firms are leveraging GenAI to streamline inner processes and improve productiveness. Nonetheless, the fast uptick in GenAI utilization has additionally launched new hurdles, significantly round information administration.

“Generative AI outputs are more diverse, unpredictable, and subjective, making it harder to define and measure success,” Chen informed VentureBeat. “To achieve enterprise-ready AI, models must be customized with high-quality data tailored to specific use cases.”

Customized information assortment has emerged as the first methodology for sourcing coaching information for GenAI fashions, reflecting a broader shift away from generic web-scraped information in favor of tailor-made, dependable datasets.

2. Enterprise AI deployments and ROI are declining

Regardless of the thrill surrounding AI, the report discovered a worrying development: fewer AI tasks are reaching deployment, and those who do are displaying much less ROI. Since 2021, the imply share of AI tasks making it to deployment has dropped by 8.1%, whereas the imply share of deployed AI tasks displaying significant ROI has decreased by 9.4%.

This decline is essentially because of the growing complexity of AI fashions. Easy use instances like picture recognition and speech automation are actually thought-about mature applied sciences, however firms are shifting towards extra formidable AI initiatives, reminiscent of generative AI, which require personalized, high-quality information and are far tougher to implement efficiently.

Chen defined, “Generative AI has more advanced capabilities in understanding, reasoning, and content generation, but these technologies are inherently more challenging to implement.”

3. Information high quality is important — but it surely’s declining

The report highlights a vital problem for AI improvement: information accuracy has dropped practically 9% since 2021. As AI fashions develop into extra refined, the info they require has additionally develop into extra advanced, typically requiring specialised, high-quality annotations.

A staggering 86% of firms now retrain or replace their fashions no less than as soon as each quarter, underscoring the necessity for contemporary, related information. But, because the frequency of updates will increase, guaranteeing that this information is correct and numerous turns into tougher. Firms are turning to exterior information suppliers to assist meet these calls for, with practically 90% of companies counting on outdoors sources to coach and consider their fashions.

“While we can’t predict the future, our research shows that managing data quality will continue to be a major challenge for companies,” stated Chen. “With more complex generative AI models, sourcing, cleaning, and labeling data have already become key bottlenecks.”

4. Information bottlenecks are worsening

Appen’s report reveals a ten% year-over-year improve in bottlenecks associated to sourcing, cleansing, and labeling information. These bottlenecks are immediately impacting the flexibility of firms to efficiently deploy AI tasks. As AI use instances develop into extra specialised, the problem of getting ready the suitable information turns into extra acute.

“Data preparation issues have intensified,” stated Chen. “The specialized nature of these models demands new, tailored datasets.”

To handle these issues, firms are specializing in long-term methods that emphasize information accuracy, consistency, and variety. Many are additionally searching for strategic partnerships with information suppliers to assist navigate the complexities of the AI information lifecycle.

5. Human-in-the-Loop is Extra Important Than Ever

Whereas AI know-how continues to evolve, human involvement stays indispensable. The report discovered that 80% of respondents emphasised the significance of human-in-the-loop machine studying, a course of the place human experience is used to information and enhance AI fashions.

“Human involvement remains essential for developing high-performing, ethical, and contextually relevant AI systems,” stated Chen.

Human consultants are significantly vital for guaranteeing bias mitigation and moral AI improvement. By offering domain-specific data and figuring out potential biases in AI outputs, they assist refine fashions and align them with real-world behaviors and values. That is particularly vital for generative AI, the place outputs could be unpredictable and require cautious oversight to stop dangerous or biased outcomes.

Try Appen’s full 2024 State of AI report proper right here.