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AI Adoption in 2024: 74% of Companies Struggle to Achieve and Scale Value

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New BCG Research on AI Adoption Identifies Fintech, Software, and Banking as the Sectors with the Highest Concentration of AI Leaders

BOSTON, Oct. 24, 2024 /PRNewswire/ — After years of investing, hiring talent, and launching pilots in artificial intelligence (AI), CEOs are now seeking tangible returns from the technology. But realizing its full value remains difficult. Even with the widespread implementation of AI programs across industries, only 26% of companies have developed the necessary set of capabilities to move beyond proofs of concept and generate tangible value, according to new research by Boston Consulting Group (BCG). 

The report, titled Where’s the Value in AI?, is based on a comprehensive survey of 1,000 CxOs and senior executives from over 20 sectors, spanning 59 countries in Asia, Europe, and North America, and covering ten major industries. Participants were asked to assess their companies’ AI maturity in 30 key enterprise capabilities.

While just 4% of companies have developed cutting-edge AI capabilities across functions and consistently generate significant value, an additional 22% have implemented an AI strategy, built advanced capabilities, and are beginning to realize substantial gains. The report designates these companies as leaders. Seventy-four percent of companies have yet to show tangible value from their use of AI.

“AI leaders are raising the bar with more ambitious goals,” said Nicolas de Bellefonds, a BCG senior partner, managing director, and coauthor of the report. “They target meaningful outcomes on cost and topline and prioritize core function transformation over diffuse productivity gains.”

Leaders Far Outperform the Rest

Over the past three years, AI leaders have achieved 1.5 times higher revenue growth, 1.6 times greater shareholder returns, and 1.4 times higher returns on invested capital. They also excel in non-financial areas like patents filed and employee satisfaction.

According to the report, leaders have six differentiating characteristics:

They focus on the core business processes as well as support functions. In fact, AI’s greatest value lies in core business processes where leaders are generating 62% of the value. Leveraging AI in both core business and support functions gives these companies a competitive advantage. They are more ambitious. Leaders look beyond pure productivity plays and back their ambitions with investment in AI and workforce enablement, making twice the investment in digital, double the people allocation, and twice as many AI solutions scaled. Leaders expect 60% higher AI-driven revenue growth and nearly 50% greater cost reductions by 2027 compared with others.They integrate AI in both cost and revenue generation efforts. Almost 45% of leaders integrate AI in their cost transformation efforts across functions (compared with only 10% of others). More than a third of leaders focus on revenue-generation from AI, compared with only a quarter of other companies. They invest strategically in a few high-priority opportunities to scale and maximize AI’s value. Data on AI adoption shows that leaders pursue, on average, only about half as many opportunities as their less advanced peers. Leaders focus on the most promising initiatives, and they expect more than twice the ROI in 2024 that other companies do. In addition, leaders successfully scale more than twice as many AI products and services across their organizations.They focus their efforts on people and processes over technology and algorithms. Leaders follow the rule of putting 10% of their resources into algorithms, 20% into technology and data, and 70% in people and processes.They have moved quickly to focus on GenAI. Leaders use both predictive AI and GenAI, and they are faster in adopting GenAI, which opens opportunities in content creation, qualitative reasoning, and orchestration of other systems.

Sectors with the highest concentration of AI leaders are typically those that experienced digital disruption early, around a decade and a half ago, giving them a head start in developing robust digital capabilities. These include fintech (49% are leaders), software (46%), and banking (35%).

More than Half of AI Value Is Derived from Core Business Functions

“Contrary to popular belief, the true potential of AI goes well beyond support functions,” said Michael Grebe, BCG senior partner, managing director, and coauthor of the report. “In fact, 62% of AI’s value lies in core business functions, enabling leaders to harness both for a significant competitive advantage.”

The companies surveyed derive more than half of AI and generative AI value from core business functions such as operations (23%), sales and marketing (20%), and R&D (13%). Support functions contribute 38% of the value, with customer service (12%), IT (7%), and procurement (7%) being the top contributors.

Companies stand to gain by pinpointing where AI can drive the most value, with the research revealing significant variations across industries:

Sales and marketing are rapidly becoming a key source of AI value in sectors including software (31% of AI value generated), travel and tourism (31%), media (26%), and telecommunications (25%).AI is making a significant impact in R&D in research-intensive sectors such as biopharma (27% of value created), medtech (19%), and automotive (29%).Customer service is a considerable source of AI-generated value so far in insurance (24%) and banking (18%).Consumer products and retail companies are making big gains with AI-driven personalization (19% and 22%).

Leaning Into the 70-20-10 Principle

The survey reveals that companies face numerous challenges when implementing AI initiatives, with around 70% stemming from people- and process-related issues, 20% attributed to technology problems, and only 10% involving AI algorithms—despite the latter often consuming a disproportionate amount of organizational time and resources. Too many lagging companies make the mistake of prioritizing the technical issues over the human ones.

An analysis of AI leaders’ capabilities, compared with other companies, shows that the key factors for scaling AI are largely people- and process-related, including change management, product development, workflow optimization, AI talent, and governance. Critical technology capabilities include data quality and management, while AI model quality and performance stand out as the top algorithm priority.

“Three-quarters of companies have yet to unlock value from AI,” said Amanda Luther, a BCG partner, managing director, and coauthor of the report. “Without decisive action, they risk falling significantly behind. This research reaffirms our long-held belief that when companies undertake digital or AI transformations, they need to focus two-thirds of their effort and resources on people-related capabilities, and the other third or so split between technology and algorithms.”

Download the publication here.

Media Contact:
Eric Gregoire:
+1 617 850 3783
gregoire.eric@bcg.com 

About Boston Consulting Group
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.

Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

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Bridge Alliance API Exchange (BAEx) Accelerates Regional Network API Adoption with Early Enterprise Customers and Market Expansion

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SINGAPORE, Nov. 3, 2026 /PRNewswire/ — Bridge Alliance, the leading mobile alliance for operators globally, today announced the commercial realisation of regional network APIs through early enterprise customers via the Bridge Alliance API Exchange (BAEx). Companies from the cloud services, mobile gaming and fintech sectors are leveraging network APIs through BAEx to power diverse digital services, demonstrating the growing commercial potential of operator network capabilities across the region.

Number Verify is one of the first APIs adopted by the companies. Number Verify confirms that the phone number a user provides is the same one they are using to access an online service or app. With digital fraud and scams a growing concern in Asia-Pacific, silent network authentication APIs such as Number Verify could authenticate users and enable service providers to build greater consumer trust. These initial deployments are intended as a foundation: as the commercial pilots progress, several of the enterprise customers will evaluate additional BAEx APIs, built on GSMA Open Gateway and CAMARA standards, and telco signals for identity verification and fraud detection.

Mr Loo Boon Chee, CEO of Bridge Alliance, said, “We warmly welcome our new BAEx customers and partners!  There has been a lot of pent-up demand and clear use cases for APIs among enterprises. We’ve worked hard to bring API capabilities together in a single platform that enables them consistent access, backed by our commercial model packaged and priced to market needs. BAEx has thus turned network API potential into a commercial reality, closing the network API demand and supply gap. We look forward to having more enterprise customers on board as we continue to add to the APIs available on BAEx.”

Mr Max Wang, Head of Cloud Communication International Business Operations, Alibaba Cloud, said, “In the era of AI, secure identity is paramount. Just as Alibaba Cloud championed Number Verify in China, Bridge Alliance now leads its adoption across APAC. As one of the original signatories with GSMA to champion this technology, we firmly believe it will eliminate mobile authentication friction and combat artificially inflated SMS traffic. By advancing Number Verify and the broader CAMARA framework, we empower enterprises to deliver seamless, trusted, and efficient digital services.”

New channel partners on board

Meanwhile, Bridge Alliance has inked strategic partnership agreements with new BAEx partners MX Labs, SBTS and TMT ID. These channel partners will connect more enterprise customers to BAEx in the coming months. MX Labs, a Singapore-based messaging infrastructure provider, brings an established enterprise base ready to move beyond SMS-based verification. SBTS, a SoftBank subsidiary, brings extensive identity and fraud detection capabilities. TMT ID, a specialist in network intelligence, uses network APIs to support identity verification and frictionless onboarding.

Mr Xinkai Chua, Managing Director of MX Labs, said, “BAEx gives us a single integration into Bridge Alliance’s member operators, so we can bring network-based number verification to our customers across Asia without building market by market. Silent verification over the mobile network cuts sign-up friction and fraud, and reduces reliance on SMS one-time passwords. We look forward to growing with BAEx as more markets and APIs come live.”

Mr John Tolton, Senior Vice President, Strategic Business Development, SBTS, said, “At SBTS, our ambition is to bring the value of the network closer to the enterprise, turning network intelligence into solutions that address real challenges in identity, trust and fraud prevention. BAEx brings us closer to that goal, creating a path to scale these solutions and make network intelligence an integral part of the digital customer journey.”

Mr Fergal Parkinson, CMO and Co-Founder of TMT ID, said: “We are delighted to collaborate with Bridge Alliance, which provides us the regional infrastructure to scale, ensuring our clients can verify genuine users and block high-risk interactions in milliseconds. By joining forces, we are expanding our operational footprint across Asia, enabling us to deliver secure, frictionless identity verification to enterprises, developers, and leading social media platforms in the region.”

BAEx Partner Programme welcomes Proximus Global

Bridge Alliance also welcomes Proximus Global, a subsidiary of Proximus, to the BAEx Partner Programme. Drawing on its distinct international experience, Proximus Global will share valuable lessons and expertise with fellow participants in technical workstreams. The Programme’s continued expansion and valuable insights from a wide spectrum of members and markets supports greater API innovation, development and standardisation, and market readiness across the region.

New markets, new APIs, new possibilities

BAEx is now expanding its presence to India and the Philippines, in addition to Indonesia, Malaysia, Taiwan and Thailand which Bridge Alliance lighted up in November 2025. API availability in these two new markets will enable proofs of concept and the development of new digital services in the coming months. Singapore and Vietnam will follow in the first quarter of 2027, extending BAEx coverage across most of Southeast Asia.

Meanwhile, Bridge Alliance’s collaboration with Aduna Global is also accelerating  global access to APIs. The combined coverage of BAEx and Aduna enables both organisations’ partners across North America, Europe and Asia to consume network APIs with ease.  Bridge Alliance and Aduna are jointly organising the inaugural Global API Forum in Singapore on 3 November 2026. The event brings together over 300 operators, developers, solution providers, and enterprise customers to discuss the challenges, opportunities, and real-world applications of API adoption.

BAEx already offers silent network authentication APIs such as Number Verify and SIM Swap, which enable secure and seamless verification. By 4Q2026, BAEx will add Know-Your-Customer (KYC) APIs to its portfolio, including KYC Match, KYC Age, KYC Tenure and Number Recycling, which verify user details against operator records. These APIs will add trust and security to digital transactions, helping enterprises prevent mule accounts and seamlessly verify delivery and marketing data.

Enterprises interested to learn more about BAEx can contact Bridge Alliance here: https://www.bridgealliance.com/how_we_help/baex-enterprises/

About Bridge Alliance

Bridge Alliance is the global collective of premier mobile operators, representing nearly 2 billion customers across the world’s most dynamic markets. Founded in 2004, we drive deep strategic collaboration between leading operators and technology partners to unlock enterprise growth. By leveraging group economies and shared innovation, we empower our ecosystem to lead, scale, and thrive in the digital and AI era. 

Visit www.bridgealliance.com for more information. 

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XTransfer and Bank of China (Hong Kong) Announce Partnership at Hong Kong FinTech Week

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Empowering Global Collections and Payments for Foreign Trade Enterprises

HONG KONG, Nov. 3, 2026 /PRNewswire/ — XTransfer, the world’s leading B2B cross-border trade payment platform, and Bank of China (Hong Kong) (“BOCHK”) are pleased to announce the signing of a cooperation agreement. The two parties will work together to expand their international business, providing one-stop cross-border financial services, including global collections, payments, and foreign exchange, for enterprises engaged in international trade in Hong Kong and around the world.

Coinciding with Hong Kong FinTech Week 2026, Mr Martin Liu, Vice President of XTransfer and Ms Winnie Fan, Deputy General Manager of the Global Corporate Banking Department of BOCHK, officially signed the cooperation agreement at the XTransfer booth, witnessed by Mr Bill Deng, Founder and CEO of XTransfer and Mr Liu Chao, General Manager of the Global Corporate Banking Department of BOCHK, marking a new stage in the partnership between the two parties.

Under this cooperation, XTransfer and BOCHK will collaborate in depth across business areas including global collections, payments, and foreign exchange. Leveraging BOCHK’s professional capabilities in cross-border settlement and foreign exchange trading, as well as its unique position as the RMB clearing bank in Hong Kong, combined with XTransfer’s self-built globally unified B2B cross-border settlement network and risk management system, the two parties will jointly create an efficient, lower-cost, and compliant fund collection, payment, and currency exchange experience for foreign trade enterprises. Under this cooperation model, XTransfer is the first corporate partner of BOCHK.

As the cooperation progresses, foreign trade enterprises in Hong Kong and around the world will be able to access global cross-border collection, payment, and foreign exchange services more conveniently, meeting their multi-currency transaction and settlement needs across different markets. Both parties expect that by reducing the handover points in cross-border transaction processes, they can enhance the service experience and capital turnover efficiency, helping enterprises seize global trade opportunities more flexibly.

This cooperation also reflects XTransfer’s continuously deepening Financial Institution Partnership Model. Financial institution partners can act as “Co-builders”, providing cross-border collection, payment, and foreign exchange capabilities; at the same time, through XTransfer’s network covering over one million business customers, they can reach more enterprise customer segments with cross-border financial service needs, achieving complementary capabilities and shared strengths.

Mr Bill Deng, Founder and CEO of XTransfer, said, “We are very honored to sign the cooperation agreement with BOCHK during Hong Kong FinTech Week. BOCHK is one of Hong Kong’s most representative banks, with deep expertise in cross-border settlement and foreign exchange services. This cooperation combines the strengths of both parties, enabling SMEs to enjoy cross-border financial services of the same standard as large multinational corporations. Going forward, we will continue to refine our compliance and risk control capabilities and work with more financial institution partners to build trustworthy cross-border financial infrastructure.

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PATEO Advances In-Vehicle AI with NVIDIA Nemotron and ByteDance Doubao on its AI Box built on NVIDIA DRIVE AGX Thor

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SHANGHAI, Nov. 3, 2026 /PRNewswire/ — PATEO is advancing in-vehicle AI by deploying NVIDIA Nemotron and the 35-billion-parameter ByteDance Doubao language model in its AI Box, built on NVIDIA DRIVE AGX Thor. The solution combines local AI inference with PATEO’s AI Agent platform to support multilingual interaction, understand cabin context and coordinate vehicle functions.

At Auto China 2026 in Beijing, PATEO announced joint development of the solution with ByteDance and a leading new energy vehicle automaker. PATEO has also secured a project nomination for a new-generation vehicle from a leading new energy vehicle automaker, with mass production for that program expected in the second quarter of 2027.

In-vehicle local inference with Nemotron and Doubao

PATEO has integrated NVIDIA Nemotron 3.5 ASR for speech recognition into its in-vehicle model suite. In collaboration with ByteDance, PATEO has also integrated Doubao, a 35-billion-parameter mixture-of-experts language model. The suite includes text-to-speech synthesis and a 2-billion-parameter language model for semantic classification and request rejection.

The integrated suite can run inference locally without a cloud connection, supporting multilingual voice interaction and real-time streaming speech recognition. This enables core AI functions to remain available when connectivity is limited, while connected services and cloud updates extend the system’s capabilities.

The PATEO AI Agent platform combines voice, visual and sensor inputs to interpret user requests and cabin conditions. Within vehicle safety permissions, it can invoke cabin controls and online services, coordinate concurrent tasks and manage longer-running requests. With user authorization, it can remember preferences and habits to personalize future interactions.

AI Box Brings Proactive Intelligence to the Cockpit

PATEO’s AI Box supports practical scenarios throughout the driving experience. Sentinel AI can identify and issue alerts for risks such as parking violations, flooding and fire. On hot commutes, occupants can independently adjust driver and passenger climate settings through voice commands or gestures. During extended highway driving, the AI agent can detect driver fatigue and ask whether the driver would like to open a window or activate seat massage. In areas with poor air quality, it can suggest closing windows and switching to recirculation based on location and learned driving habits.

Built on NVIDIA DRIVE AGX Thor, the AI Box connects perception, reasoning, execution and learning. Sustaining these experiences requires memory bandwidth alongside peak compute measured in TOPS. As context accumulates across conversation turns and agent actions during a trip, the model’s key-value (KV) cache grows, increasing demands on memory capacity and bandwidth. Thor’s accelerated compute and high memory bandwidth help support responsive local inference. Within automotive safety permissions, the AI Box coordinates cockpit controls, connected services and concurrent or longer-running tasks. With user authorization, it remembers preferences and habits, while cloud updates help refine its capabilities.

The AI Box’s modular software architecture and integration with in-vehicle systems and NVIDIA’s edge and cloud AI ecosystem support model deployment, tuning and customization across vehicle programs. By adding dedicated AI computing capacity without replacing the original main control chip, it also offers an upgrade path for existing vehicles whose processors cannot support larger models, concurrent multimodal interactions and proactive agents through software updates alone.

Expanding Beyond Hardware with Tokenomics and Physical AI

PATEO is building on the AI Box to expand from one-time hardware delivery into ongoing AI services and operations. Its in-vehicle Tokenomics strategy aims to create recurring revenue around the deployment and use of AI capabilities, extending the business opportunity beyond the initial hardware sale.

In June 2026, PATEO formed partnerships with Mininglamp Technology, Xunce Technology and Saimo Technology to jointly develop a token-based physical AI world model and TokenOS. The collaboration brings together on-device hardware, simulation testing, data infrastructure, creating a foundation for delivering and operating AI services.

Built on NVIDIA DRIVE AGX Thor, the AI Box provides a reusable platform that PATEO can adapt to different automakers and vehicle programs. The company is also extending its expertise in intelligent interaction and hardware engineering into robotics. PATEO reports a project nomination from a leading domestic robotics computing provider, opening an opportunity to apply its platform capabilities to physical AI applications beyond vehicles.

As on-device models and AI agents move toward broader automotive deployment, PATEO is combining NVIDIA accelerated computing with its cockpit software and hardware expertise to support that transition. Its focus on reusable technology, deployment across vehicle programs and ongoing AI services supports its evolution from a smart cockpit supplier into an AI platform company, with opportunities for growth across automotive and broader physical AI markets.

 

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