By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
World of SoftwareWorld of SoftwareWorld of Software
  • News
  • Software
  • Mobile
  • Computing
  • Gaming
  • Videos
  • More
    • Gadget
    • Web Stories
    • Trending
    • Press Release
Search
  • Privacy
  • Terms
  • Advertise
  • Contact
Copyright © All Rights Reserved. World of Software.
Reading: Execs shy away from open models and open source AI | Computer Weekly
Share
Sign In
Notification Show More
Font ResizerAa
World of SoftwareWorld of Software
Font ResizerAa
  • Software
  • Mobile
  • Computing
  • Gadget
  • Gaming
  • Videos
Search
  • News
  • Software
  • Mobile
  • Computing
  • Gaming
  • Videos
  • More
    • Gadget
    • Web Stories
    • Trending
    • Press Release
Have an existing account? Sign In
Follow US
  • Privacy
  • Terms
  • Advertise
  • Contact
Copyright © All Rights Reserved. World of Software.
World of Software > News > Execs shy away from open models and open source AI | Computer Weekly
News

Execs shy away from open models and open source AI | Computer Weekly

News Room
Last updated: 2025/06/18 at 11:08 AM
News Room Published 18 June 2025
Share
SHARE

A poll of major businesses from the Capgemini Research Institute has found that while using artificial intelligence (AI) for automating repetitive business tasks offers significant savings, the tasks being improved are relatively simple. A significant number of the business leaders surveyed also say they prefer proprietary AI implementations over open source alternatives.

According to the survey of 1,607 executives from organisations with at least $1bn in global revenue, business leaders are seeing a 40% reduction of customer operations costs thanks to AI and generative AI (GenAI). The executives polled also saw a reduction of 26% in people operations costs, and a 24% reduction of finance and accounting costs. Respondents also achieved a 21% reduction of supply chain and procurement costs.

As an illustration of agentic AI potential in the industry, Capgemini highlighted Yum Brands, the parent company of Taco Bell, which operates 60,000 restaurants worldwide. The company introduced an AI-powered restaurant manager to track crew attendance and plan shift patterns, as well as suggest adjusted opening hours to align with market conditions.

While such examples show the potential of AI and GenAI to improve business efficiency, the research found that a significant portion of the gains reported by respondents tend to be associated with automating straightforward, repetitive tasks. According to Capgemini, this suggests the use of AI and GenAI among the executives polled represents early stage efficiencies rather than long-term transformational impact.

Savings need to be balanced against the cost of running the AI system. Capgemini Research Institute noted that the price of querying a trained model is falling dramatically. For instance, OpenAI’s GPT 3.5 experienced a decrease from $20 per million tokens to $0.07 per million tokens, while GPT-4 had a reduction from $15 to $0.12 in a year.

Techniques such as model pruning, quantisation and distillation can be used to reduce the size and complexity of AI models. As Capgemini Research Institute points out, these optimised models require fewer computational resources, which lowers inference costs. Alongside more efficiency algorithms, Capgemini Research Institute said that efficient hardware utilisation, batch processing of inference requests, dynamic scaling to adjust the number of computing resources based on current demand, and energy-efficient algorithms can significantly reduce the power consumption of AI models.

However, although open-source models such as DeepSeek have been shown to achieve an 11x reduction in compute costs without compromising performance and can address the advanced hardware bottleneck many organisations face, the poll showed that business executives are less enthusiastic about open source AI compared with proprietary AI models.

Despite the increasing performance and cost advantages of open-source AI models, Capgemini reported that a significant majority of executives continue to favour proprietary AI implementations. Three-quarters of the executives surveyed prefer proprietary models, with 43% opting for those developed by hyperscalers and another third choosing models from niche providers.

Capgemini found that the preference for proprietary models and AI systems is particularly strong among organisations that have scaled up their investments in AI and GenAI, which, the report’s authors suggest, indicates a clear trend towards trusted, enterprise-grade AI products that offer robust support, security and integration capabilities.

The findings, published in Capgemini Research Institute’s AI in action report, identifies a number of trade-offs that curb enterprise adoption of open-source models due to the trade-offs IT and business leaders need to make. These include the need for greater technical expertise, potential exposure to security vulnerabilities and reliance on community-driven support that can impact update cycles and documentation quality.

Oliver Pfeil, CEO of business services at Capgemini, said: “GenAI and agentic AI can truly transform business services – enabling the shift from traditional cost-focused models towards an AI-enabled, value- and insight-driven business. Those that adopt an integrated approach with data and AI at its core will be set to achieve a truly connected, frictionless enterprise.”

However, he noted that the research suggests organisations face numerous barriers scaling up the deployment of AI agents. “Adopting a pragmatic approach, fostering trust in AI and creating a strong data foundation will go a long way in transforming business services into a strategic powerhouse to fuel any enterprise,” he added.

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Twitter Email Print
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article You don’t need to wait until Prime Day 2025 to save big on the Powerbeats Pro 2
Next Article WhatsApp blasts 'false' Iranian reports accusing app of spying for Israel
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

248.1k Like
69.1k Follow
134k Pin
54.3k Follow

Latest News

Samsung’s first Android XR headset and smart glasses reportedly coming this fall
News
YouTube is plugging Veo 3 AI videos directly into Shorts
News
Craig Federighi explains why iPad shouldn’t run macOS, more in new interview – 9to5Mac
News
Musk’s X sues to block New York social media transparency law
News

You Might also Like

News

Samsung’s first Android XR headset and smart glasses reportedly coming this fall

6 Min Read
News

YouTube is plugging Veo 3 AI videos directly into Shorts

1 Min Read
News

Craig Federighi explains why iPad shouldn’t run macOS, more in new interview – 9to5Mac

4 Min Read

Musk’s X sues to block New York social media transparency law

4 Min Read
//

World of Software is your one-stop website for the latest tech news and updates, follow us now to get the news that matters to you.

Quick Link

  • Privacy Policy
  • Terms of use
  • Advertise
  • Contact

Topics

  • Computing
  • Software
  • Press Release
  • Trending

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

World of SoftwareWorld of Software
Follow US
Copyright © All Rights Reserved. World of Software.
Welcome Back!

Sign in to your account

Lost your password?