Generative AI Adoption Surges: A Game Changer for Businesses and Society, Survey Finds

The rise of generative AI, epitomized by ChatGPT’s debut in November 2022, has taken the world by storm, with adoption rates soaring faster than previous technological revolutions like personal computers (PCs) and the internet. According to new survey data from researchers at Harvard, Vanderbilt, and the Federal Reserve Bank of St. Louis, nearly 40% of U.S. adults aged 18 to 64 have used generative AI tools as of August 2024, underscoring the rapid integration of this technology into everyday life.

The survey revealed that 28% of employed adults are using AI-powered tools such as ChatGPT in the workplace, while nearly 33% use them outside of work, for personal tasks. These figures suggest that generative AI is spreading faster than the personal computer, which took three years to achieve a 20% adoption rate, and the internet, which hit that milestone after two years. The findings suggest that generative AI is more than just a passing trend—it’s poised to have a long-term impact across industries and society.

Generative AI: Riding on the Coattails of PCs and the Internet

David J. Deming, Harvard professor of political economy and one of the co-authors of the study, pointed out that the fast adoption of generative AI can be attributed to the foundation laid by earlier technologies. “Generative AI builds on the infrastructure created by the personal computer and the internet. Those technologies were revolutionary, but they were also expensive and exclusive when they were first introduced. Today, people have easier access to digital tools and the internet, making it far simpler to adopt innovations like AI,” Deming said.

The research team, including Deming, Alexander Bick from the Federal Reserve Bank of St. Louis, and Adam Blandin from Vanderbilt University, structured the survey to mirror earlier studies on technology adoption, specifically using questions from the Current Population Survey (CPS). By replicating the questions that were used to track the adoption of PCs in 1984 and internet usage in 2001, the researchers were able to directly compare generative AI’s adoption curve with that of earlier technology milestones.

The result? Generative AI, with a 39.4% adoption rate among adults in just under two years, has outpaced both the personal computer and the internet during their early product cycles. This is significant not just for tech enthusiasts but for businesses and policymakers looking to understand the potential economic and social impacts of this technology.

Who’s Leading the Charge? Young, Educated, and Tech-Savvy Users

The survey also revealed demographic patterns in the use of generative AI. Younger adults, men, those with higher levels of education, and individuals in STEM (science, technology, engineering, and mathematics) fields or management positions are more likely to use AI tools like ChatGPT. Deming pointed out that this pattern aligns with the adoption of previous technologies like PCs and the internet, where younger and more educated users led the charge.

“The fact that younger people and those with more education are adopting this technology faster is not surprising. It’s a common trend with most new technologies,” Deming explained. “What was interesting, however, is how the adoption pattern differs slightly from earlier tech revolutions, particularly in terms of gender. During the 1980s, women used PCs in the workplace more than men because many held administrative or office jobs that required computer use. But generative AI use, particularly in jobs like STEM and management, skews more male.”

The survey also found that generative AI is not confined to white-collar industries. While usage rates are highest in STEM and managerial roles, 22% of blue-collar workers reported using AI in their jobs. In fact, AI usage exceeded 20% in nearly every occupational category except for personal services. This suggests that AI’s applications are broad and diverse, cutting across different sectors and job types.

Generative AI’s Informal Role in the Workplace

One of the more intriguing findings of the survey is that, while a growing number of people are using AI tools at work, relatively few companies have formally incorporated the technology into their operations. Instead, employees are using AI informally for tasks such as drafting emails, conducting research, or finding documentation on how to complete certain tasks. This points to a grassroots level of AI adoption in the workplace, where individuals are experimenting with the technology even in the absence of formal company policies or guidance.

“People are using generative AI on their own initiative to make their jobs easier or more efficient,” Deming noted. “It’s not necessarily something that companies are formally rolling out, but they’re also not discouraging its use. This is something we plan to track in future surveys, to see how businesses begin to incorporate AI tools into their workflows more systematically.”

A Call to Action for Businesses

For businesses, the implications of this rapid AI adoption are clear: now is the time to act. According to Deming, companies that are quick to embrace and integrate generative AI into their operations stand to gain a significant competitive advantage. “If you had known in 1984 what personal computers would become, you would have done a lot differently. The same is true now with generative AI,” Deming said. “This technology is versatile, and while it hasn’t yet found its ‘killer app,’ similar to how the internet revolutionized communication, those who figure out how to use it effectively will be the big winners in the next decade.”

The researchers believe that much like the internet became the foundation for many of today’s innovations, generative AI will serve as a platform for new applications and business models. As companies begin to experiment with AI-powered tools, the potential for economic disruption—and opportunity—is vast.

AI’s Next Frontier: Searching for the “Killer App”

Despite its broad appeal and rapid adoption, generative AI has yet to find its definitive “killer app”—the single, transformative application that would make it indispensable across industries. While tools like ChatGPT have demonstrated the ability to generate text, assist with coding, and offer customer service solutions, experts believe the technology’s full potential has yet to be unlocked.

Deming predicts that the next five to 10 years will be critical as companies and entrepreneurs seek to harness generative AI for more specialized and impactful uses. “We’re not at the point yet where generative AI is a fully developed product, but it’s already incredibly versatile. The companies that figure out how to use this technology in a way that adds significant value to their operations will profit enormously.”

Looking Ahead: Tracking the Evolution of Generative AI

As the generative AI landscape continues to evolve, Deming and his colleagues plan to conduct follow-up surveys to track usage trends, dig deeper into how AI is being used in different sectors, and assess the broader economic implications. Their current research provides a valuable benchmark for understanding the technology’s early impact, but the story of generative AI is far from over.

For businesses, the message is clear: those who act now to integrate AI into their operations are positioning themselves for success in the next wave of the digital revolution. Much like the internet before it, generative AI is set to become a foundational tool for communication, productivity, and innovation. The future belongs to those who can harness it first and best.

As Deming puts it, “The opportunity is immense, and the time to act is now.”