AI and GenAI – State of Enterprises in 2025

The year 2024 witnessed a significant adoption of the twin powerhouse, artificial intelligence (AI) and generative AI (GenAI), for improving operations, enhancing customer experience, and driving innovation. The Gartner 2024 CIO for Health report revealed that over 90% of CIOs want to deliver superior customer journeys, and 100% believe AI and machine learning (ML) investments will be critical in achieving this goal. Around 88% of the surveyed stressed implementing low-code/no-code development platforms as a crucial step, followed by nearly 80% of CIOs adding GenAI to this mix.

AI and GenAI Performance in 2024: Key Trends and Growth Insights

AI adoption across industries witnessed a massive surge in 2024. According to Accenture, by the end of 2024, the global AI market was valued at over $200 billion, with a growth of 38% projected over the next five years. In the coming months, AI will continue to benefit industries, particularly healthcare, banking, and insurance. Deloitte’s US State of GenAI highlighted that over 60% of large enterprises now leverage AI-driven tools, particularly GenAI, which will account for 15% of AI-generated revenues by 2025.

AI and GenAI for Low-code

According to Forrester, the generative AI market will grow at 36% annually for the rest of the decade, and low-code and workflow automation platforms will benefit the most from this shift. A roughly comparable AI-fueled explosion in citizen development and AI-infused platforms could drive a 33% annual growth in the low-code and workflow automation market, pushing it to $50 billion by 2028.

A December 2022 Gartner report predicted that citizen developers will constitute about 80% of the user base for low-code development tools by 2026. As AI’s influence continues to grow, 2025 will see more emphasis on AI ethics, data privacy, and compliance regulations, particularly within the low-code ecosystems.

AI and GenAI Reshaping Customer Experience for Banking Industry

In 2024, the banking sector’s AI market size exceeded $30 billion, driven by rapid fraud detection, risk management, and customer service automation advancements. As per Accenture’s Banking Top 10 Trends for 2024, banks will benefit more from GenAI than any other industry, indicating a potential to boost productivity by 22-30% and revenue by 6%.

McKinsey’s 2023 State of GenAIinsights showed GenAI could deliver a value worth $200 billion to $340 billion annually across the banking industry if the use cases were fully implemented. Another report predicted that during 2025 AI will play a more significant role in automated compliance, fraud detection, and regulatory reporting.

Data-driven insights and personalization were top priorities (54%) for banking CIO investment, as per the KPMG Future Proofing Banking 2024 Report. AI and GenAI have been critical tools for delivering personalized products and services that drive bank growth and innovation.

A New Era of Automation Unlocked with AI in Insurance

AI has become essential in the insurance sector, finding several enterprise use cases, such as underwriting and workbench automation, intelligent claims processing, smart policy binding, and fraud detection. According to an ISG 2024 State of GenAI report, AI has the potential to contribute to around 24% of use cases in insurance, especially around assisting underwriters to identify risk and design the best insurance solution for their client. Gartner Predicts 2024 report for Insurance CIOs noted that 91% of insurance CIOs will likely implement AI in their ecosystem by the end of 2026, especially deploying AI and machine learning (AI/ML) initiatives, with basic chatbots, computer vision, and natural language processing (NLP) emerging as the closest-to-majority adopted AI techniques.

A recent Deloitte report predicted that AI could add over 10%—or roughly $12.5 trillion—to global GDP by 2032. The global AI in the insurance market will be worth around $91 billion by 2033, up from $5 billion in 2023, growing at a CAGR of 32.7%.

AI and GenAI for the Healthcare Industry

AI in healthcare, especially for payers and providers, saw remarkable growth in 2024. AI-driven diagnostic tools, robotic surgery, and personalized care models have gained significant traction. According to research reports, the market for AI in healthcare reached $16 billion in 2024 and is projected to grow 41% by 2027.

GenAI, specifically, revolutionized areas like patient engagement and healthcare delivery. As per Forrester’s State of Future Fit in Healthcare 2023 report, over 80% of healthcare providers believed that practical usage of AI would lead to higher agility and efficiency, a boost in patient experience, and improved patient outcomes through AI adoption.

The adoption of GenAI in telemedicine, drug discovery, and clinical trial management is expected to accelerate in 2025. PWC Medical Cost Trend 2024 reported that AI-driven diagnostics will capture a 40% market share by 2026, significantly improving early disease detection and preventive care.

The Road Ahead for GenAI and AI for Enterprise

Enterprises across all sectors now view AI and GenAI as critical strategic enablers. The ability to process vast amounts of data, personalize offerings, and automate complex processes will drive sustained growth in 2025 and beyond. According to McKinsey, GenAI adoption is no longer a novelty, with 65% percent of respondents reporting that their organizations regularly use GenAI at their enterprise. IDC GenAI forecasts enterprises will increase GenAI investment to $151 billion by 2027.

The latest buzz in AI is Agentic AI, which represents a leap toward creating brilliant systems capable of reshaping industries. A Forbes article called it the ‘third wave of AI’, with predictive AI and GenAI being the first two. Providing round-the-clock health assistance, Agentic AI could be the booster dose for patient care. It can enhance fraud detection systems, automatically identifying patterns and anomalies that traditional models may miss. Agentic AI can autonomously adjust portfolios based on real-time data and market conditions regarding asset management.

Newgen’s commitment to AI and GenAI

Newgen has been consistently collaborating with global customers on strategies for adopting AI and GenAI to facilitate enterprise-wide commercialization. Our advanced AI & Data Science Platform cuts across industry verticals and adds value to our customers.

Responding to the rising demand for accelerated customer-centric digital initiatives, we introduced NewgenONE LumYn, a GenAI-enabled growth intelligence platform, empowering hyper-personalization at scale. LumYn leverages our data science platform and advanced conversational AI to offer insights that lead to deeper customer engagement while safeguarding data privacy and security.

Additionally, NewgenONE Marvin, our GenAI expert, accelerates application development, effortlessly delivers real-time insights from processes and documents, and enhances customer interactions. We are able to deliver a rapid business app design, refined customer communications, and deep document insights—all integrated into existing workflows.