Tuning in to AI: More than a dozen reasons media and entertainment is already seeing ROI on gen AI

The media and entertainment world is undergoing a disruptive transformation, fueled by the advances and innovations in generative AI over the past 24 months. From the biggest studios to the smallest creators, from production to distribution to consumption — both how and what people are tuning into — AI is playing a role.

Far from a passing trend, companies are not only actively using AI in their day-to-day operations, they’re also seeing a positive and tangible impact on top-line and bottom-line growth. That’s what hundreds of senior leaders from across the industry and world revealed in a new study, "The ROI of Gen AI in Media and Entertainment," from Google Cloud and National Research Group.

The new research surveyed 263 senior leaders from global companies, providing valuable insights into the real and immediate benefits of this transformative technology. Whether it’s streamlining customer service interactions, augmenting content creation through automation, or personalizing consumer engagement, gen AI is proving its worth across various areas.

As more organizations adopt AI — and our research has found the majority are already there — they will be looking for strategies to stand out. You can find more than a dozen in our full report linked above, and we’ve gathered three of the most important trends here.

1. 64% of organizations are already leveraging gen AI

We're already seeing rapid and widespread adoption of gen AI across the media and entertainment industry, with nearly two in three actively using the technology.¹ This high adoption rate demonstrates that gen AI is no longer an experimental technology, but is being actively deployed, signifying a significant shift in how content is created and delivered.

The widespread use of gen AI extends into the enterprise and across the media supply chain to increase operational and employee productivity, competitiveness and product differentiation, and data-driven decision making. For most (83%) companies, the path from ideation to execution is less than 6 months.²

“As one of the leading global media brands, our highest priority is to always provide an informative and engaging experience for our audience,” says Burhan Hamid, CTO of publisher TIME. “Generative AI has allowed us to create new experiences for our readers, making it easier for them to find the content they want to consume.”

2. 72% are seeing ROI on at least one gen AI use case

More than a buzzword or a theoretical concept, gen AI is delivering tangible results and contributing to the bottom line of a significant portion of media and entertainment companies. Organizations that embraced gen AI early on are now reaping the benefits, suggesting that those who haven't yet adopted may be falling behind in terms of efficiency, innovation, and profitability.

Among the media and entertainment organizations leveraging gen AI, 72% are already seeing ROI on at least one use case.³ This signals a positive trend, as wider adoption is likely to follow as more organizations successfully implement gen AI and experience its value.

The emphasis on ROI suggests that media and entertainment companies are increasingly guided by data-driven decision making, looking for measurable results from their technology investments, leading to more strategic and effective adoption of gen AI. While some may be struggling to achieve value from AI investments, those who are, demonstrate that the technology is maturing, delivering real value and driving wider adoption.

3. More than half are leveraging gen AI for customer service, digital commerce, or productivity

While AI is playing a role in pretty much every part of media and entertainment organizations, it is telling how many have yet to fully embrace the technology in real-world applications.

The leading areas where gen AI is in production in the industry are customer service (57%), digital commerce (56%), and productivity (53%).³ This means nearly half of organizations are missing out on the benefits others are seeing from AI in these areas. Companies that are leveraging gen AI for customer- and employee-centric purposes are likely gaining a competitive edge, delivering better experiences and improving overall efficiency, leading to greater customer satisfaction and a stronger market position.

We are seeing the significant impact of gen AI on the core business operations of media and entertainment companies, though it also is important for media and entertainment companies to explore how AI can be effectively integrated into other areas of the business, such as content creation, marketing, and monetization.

As the media and entertainment industry continues to embrace gen AI, we're witnessing a transformation not just in the underlying technologies but in how AI can responsibly augment creativity, content creation processes, and employee productivity. The widespread adoption of gen AI, evidenced by its integration into core operations and the tangible ROI it's delivering, underscores its potential to reshape the industry landscape.

While challenges remain, the path forward is clear: organizations that leverage gen AI effectively stand to gain a competitive advantage, driving innovation, boosting efficiency, and ultimately delivering richer, more personalized experiences to their audiences.

¹Total market - media and entertainment (global): n=263
²Total market - media and entertainment organizations with at least one use case in production: n=256
³Media and entertainment organizations currently leveraging gen AI in production: n=169