Now and Next Report - en
Now and Next Report - en
Executive summary 5
Artificial intelligence 9
Productivity 16
Scalability 21
Automation works! 25
Survey demographics 29
Key terms 31
The report is also unmatched in its breadth, providing a unique and comprehensive look at the actions,
experiences, and projections of more than 1,000 decision-makers from across industries and regions.
Respondents by industry
11% 14%
Retail/consumer Financial/insurance
11% 13%
Telecom Services/consulting
Industries
12% 13%
Technology Industrials/materials/manufacturing
13% 13%
Transportation Healthcare & life sciences
NOW NEXT
June 2022 to May 2023 June 2023 and beyond
The survey behind Automation Now & Next 2023 was conducted in May and June 2023. Respondents were
instructed to consider “now” as the preceding 12-month period of June 2022 to May 2023 and “next” as
June 2023 and beyond.
To see the demographic breakdown of survey respondents, jump to the report appendix.
Key takeaways
Why are organizations so eager to invest in AI and generative AI solutions? The pressing need to increase
productivity across the enterprise. Since 2005, U.S. productivity has slowed significantly. A recent study
by The Harris Poll found that 72% of business leaders from Fortune 500 companies plan to incorporate
generative AI within 3 years specifically to address productivity gaps. Boosting productivity growth to
the historic average—a daunting 50% increase over the current growth trend—could add $10 trillion in
output to just the U.S. economy by 2030, according to McKinsey.
With ever-increasing growth and profitability levels expected from businesses, this massive productivity
gap has become a top concern for executives and boardrooms around the globe. Many forward-looking
businesses are combining process automation, AI, and generative AI to transform operations, streamline
how work happens, improve customer service, and enable improved performance to power steep
growth trajectories.
But to impact productivity gaps quickly, effectively, and securely, organizations must scale automation
efforts by enabling business users to build automations that support organizational goals. This requires
leaders to accelerate their identification and targeting of processes ripe for productivity improvements,
and then leverage customized and industry-specific AI and generative AI technologies to ensure data
privacy and security.
NOW NEXT
We expect AI investments to continue
17% increase in year-over-year
growth in average Intelligent their acceleration as organizations adopt
Automation investment. purpose-built AI and generative AI and
overcome any internal resistance. With the
majority of respondents already investing
88% of respondents say AI is key to
successful automation. in AI/ML, we expect Intelligent Automation
investments to accelerate, too.
70% of respondents say security
concerns will stop them
from using AI.
AI continues to be a transformational force and a topic of mainstream conversation. From 2017 to 2022, the
McKinsey Global Survey on AI found that AI adoption more than doubled. Now, generative AI is accelerating
these workforce transformations, with McKinsey estimating that half of today’s repetitive work tasks could be
automated within the next 20 years.
The mainstream hype around generative AI is also leading executives to increase AI investments in general,
according to research by Gartner. Organizations now see AI, and generative AI specifically, as essential for
process automation success, and investments in Intelligent Automation (automation + AI) continue
to increase. Last year, 78% of respondents said they would somewhat or significantly increase automation
budgets in the coming 12 months. That proved to be true, with the average respondent now investing
$5.6 million in 2023 in Intelligent Automation for a 17% increase over 2022 spending. In 2022, the average
automation ROI was 6.3x, up from 2.5x in 2021, indicating that organizations are confident in the value
of automations.
50%
28%
22%
$5.6M
is the average investment in
Intelligent Automation.
70%
30%
14% 11%
Last year, 84% of respondents said their automation programs were actively scaling or deploying broadly,
and 52% said that Intelligent Automation was a key focus for the next 12 months. That has proven true
this year as the focus on RPA-based automation has given way to Intelligent Automation. Today, 75% of
respondents say they are deploying Intelligent Automation broadly (44%) or actively scaling enterprise-
wide (31%). This is likely due to organizations wanting to quickly replicate successes realized in smaller or
departmental Intelligent Automation deployments.
31%
15%
10%
88%
12%
Nearly two-thirds of respondents (63%) have already deployed AI/ML, and 40% have already deployed
generative AI—nearly as much as the 46% that have already deployed RPA. We expect adoption of generative
AI and Intelligent Automation to happen faster than that of RPA, therefore automation leaders must make AI
a core capability across an automation program.
Enterprise-wide
Generative AI 16% 24% 4%
Limited deployment
Natural language
10% 14% 3%
processing (NLP)
Last year, 72% of respondents said they had simply prioritized Intelligent Automations. This year,
organizations are moving forward with vigor as 72% of respondents say their organizations are actively
investing in AI/ML automation technologies in the next 12 months—far eclipsing the 53% of respondents
who say their organizations are investing in RPA over the next 12 months.
Generative AI 45%
Natural language
28%
processing (NLP)
Most respondents (82%) are looking for specialized and industry-specific automation technologies, such as
custom large language models for generative AI. We expect these specialized AI apps to require increased
input from the business users and SMEs who are deeply familiar with business goals and strategies at various
levels. We also expect organizations to retain this SME “human-in-the-loop” to enable governance and
reduce risks by involving those most familiar with the business processes.
NOW NEXT
With 72% of respondents investing in AI/ML
78% of respondents say
productivity gains are over the next 12 months, we expect to see
desired impact of automation, more AI-driven innovations and automation
surpassing all other KPIs. use cases, especially as generative AI
deployments increase. To coordinate,
govern, and scale these efforts, we expect
68% of respondents see virtual
assistants as AI use case, far organizations will standardize on a unified
greater than the other use automation platform.
cases listed.
The desire to increase productivity is the primary driver of most automation initiatives, with 76% of
respondents choosing productivity as the top KPI used to measure the impact of Intelligent Automation
investments. In 2022, respondents cited cost reductions, improved employee experiences, and business
continuity as the top three goals driving automation projects. ROI remains a lagging KPI, selected by 68% of
respondents, as it was last year when 53% of respondents said they strongly agree they were more focused
on near-term performance benefits than on ROI. Again, we believe this is due to the impressive 6.3x average
ROI from automation efforts realized by respondents last year, which eliminated any doubt about the value
of automation.
76% Productivity
73% Quality 69% Customer
satisfaction
Automation and generative AI are already unlocking myriad new use cases across organizations and serving
as a crucial catalyst in changing how people work—the operating model—so organizations can increase
worker productivity. When combined with generative AI, automation works faster across every system, team,
and process to accelerate those productivity gains and provide additional speed and confidence.
87%
13%
Why productivity?
Why is productivity such a concern? The number of working-age people across
the globe is on the decline, according to The World Bank, which is adding to
decreasing productivity and an increasing number of job vacancies. It’s clear we
are in a global productivity crisis. To reattain historical growth levels, McKinsey
estimates organizations need a 50% increase in worker productivity. That’s a tall order
considering the breadth of technology and productivity investments enterprises have
already made: a study by Mulesoft and Deloitte found that today’s average enterprise
runs over 1,000 applications.
Most respondents (84%) say a single, complete, and connected automation platform is required to scale
enterprise-wide productivity. A unified automation platform is one that integrates a variety of capabilities
that connect across multiple systems and processes for comprehensive functionality, and drives easier and
faster scalability, drives faster impact and ROI.
84%
16%
Last year, 52% of respondents strongly agreed on the value in intelligent assistants. That confidence generated
a rapid rise in generative AI investments and deployments, as reflected in virtual assistants being the number-
one use case for Intelligent Automation technology, cited by 68% of respondents—up from just 49% from
last year. Customer service and intelligent document processing are tied for the next most-mentioned uses
cases for Intelligent Automation, both of which will be greatly improved with generative AI technologies. We
expect the use cases for Intelligent Automation to continue expanding as generative AI advances and more
organizations develop innovative applications.
Intelligent document
54%
processing
Other use cases selected by more than one-third of respondents include risk management,
predictive maintenance, real-time decision-making, and human resources.
NOW NEXT
We expect generative AI to be the catalyst
85% of respondents say automations
must support business objectives. of automation scalability as automation
moves from routine tasks to supporting
strategic business objectives. IT has been
82% of respondents actively
support citizen development. taking the lead in enabling business users
to develop automations, and we expect IT
of respondents say security to continue leading those efforts.
49% and governance concerns are
barriers to citizen development.
Productivity needs are driving automation investments, which are being accelerated by advances in AI and
generative AI technologies. But true transformation requires automation at scale, and automation at scale
requires automation development at scale. Business users are crucial to the citizen development efforts that
will drive automation scale because business users are most familiar with the business goals automations
must be designed to support, and 84% of respondents say that automation initiatives must be developed
with business objectives in mind.
84%
16%
Citizen development, or empowering business users to build their own automations, is encouraged at most
companies, which is a good sign for future scalability. Today, 40% of respondents say citizen development is
broadly encouraged, and another 41% say it is encouraged in select business areas.
14%
5%
Citizen developers are having a difficult time adopting and succeeding with highly complex tools and
automations, however. Plus, respondents say the lack of technical skills (49%) or lack of training (40%) are
preventing automation leaders from encouraging widespread citizen development, among other issues.
We expect generative AI and virtual assistants to unlock automation scalability by helping business users
participate in citizen development to automate processes faster, with more accuracy, providing embedded
guardrails to adhere to governance, compliance, and consistency rules. It’s critical to empower these
business users because, as mentioned, business users are more familiar with business objectives than
centralized automation developers.
As mentioned above, virtual assistants have become the number-one use case for Intelligent Automation,
and organizations see generative AI as the path to expanding automation scale and development
by business users. We expect citizen developers will use generative AI-powered virtual assistants to
simplify, add consistency and governance, and improve quality in automation development, and to turn
conversational requests into accurate automations. Supporting those AI efforts for business users will be
IT, since 78% of respondents say IT teams already enable business users to create automations because it
alleviates automation development backlogs.
78%
41% 41%
34% 34%
29%
Predictions
Using the insights provided in this and previous
Automation Now & Next reports, we expect the following to
occur in the coming 12 months:
• Start all new initiatives on the cloud and by leveraging a complete and
connected Intelligent Automation platform.
Regions represented
25%
25% Europe
North America 15% 20%
India
Asia Pacific
15%
LATAM
38%
Director
17%
C-level
Job level
25%
20% Executive VP, Senior VP
VP
Functional role
10% Software/application 6%
Accounting/finance
development
54%
Average revenue
$3.8B
20% 21%
4%
53%
2000-4,999
18% 29%
10,000+ 5,000-9,999
Industries
Automation leaders
Automation leaders are individuals who are charged with overseeing the development, management, and
scale of a company’s automation program—sometimes referred to as an automation center of excellence
(CoE). They may sit inside of an IT organization or in a line of business and may lead one of multiple
automation programs across an enterprise. They may be charged with implementing automation programs
that drive business objectives, which may include creating process efficiencies, reducing costs, or improving
the employee experience—all of which lead to broader enterprise transformation goals.
Business leaders
Business leaders seek to adopt Intelligent Automation to drive specific business objectives such as creating
process efficiencies, eliminating costly human error, reducing costs, or improving the employee experience
by offloading tasks—all of which lead to broader enterprise transformation goals. Business leaders will
partner with automation leaders to develop automation initiatives that will help meet these goals and lead
change management initiatives to drive adoption among teams.
Business users
A business user refers to a non-technical professional within an organization who actively participates in the
automation process. These individuals are typically from various business departments and possess in-depth
knowledge of their specific workflows, tasks, and processes.
Centralized CoE
A centralized CoE operates as the singular governing automation CoE within an organization, supporting
automation initiatives across every team or line of business. Benefits of a centralized approach include
tighter governance and security controls and a consistent methodology and processes that can be
replicated across automation initiatives. Centralized CoEs can run into barriers to scale as demands from
business units can outweigh the resources that a centralized CoE may be able to provide.
Federated CoE
A federated CoE operates as a distributed network of automation teams and programs across various lines
of business, working with the singular governing body that sets standard operating procedures and generally
sits within central IT. Benefits of a federated approach include the ability to scale quickly, the proximity to
the business (and therefore a deeper understanding of business goals), and the ability to pivot quickly as the
business shifts. Limitations include difficulties with maintaining governance and security controls and the high
potential for redundant initiatives that can cause inefficiencies across the organization.
Generative AI
Generative AI is a subset of artificial intelligence that focuses on enabling machines to generate new and
original content, such as images, text, music, or videos, that is not directly copied from existing data.
Intelligent Automation
Intelligent Automation is the combination of various automation technologies like RPA, AI, machine learning
(ML), intelligent document processing (IDP), and process discovery to assist human workers and automate
processes that deliver a high ROI and ultimately business transformation. RPA is the core technology
and root of the broader Intelligent Automation category that has since expanded to include adjacent
technologies, as well as human-in-the-loop processes that empower business users.
Virtual assistant
A virtual assistant is an AI program or software application designed to perform tasks and provide services
to users through conversational interfaces, typically voice-based or text-based. Virtual assistants can assist
with a wide range of tasks, such as answering questions, providing information, setting reminders, managing
schedules, and executing various other tasks based on user commands and queries.
August 2023