4 Ways to Transform Generative AI Experiments into Real Business Value

4 Proven Ways to Turn Generative AI Experiments into Real Business Value

Generative AI is reshaping industries, offering unprecedented opportunities for organizations to innovate and enhance productivity. Yet, for many businesses, the journey from experimentation to measurable results can be elusive. With predictions that 30% of generative AI (gen AI) projects will stall before reaching production by the end of 2025, it's clear that transitioning from concept to real business impact requires a thoughtful, strategic approach. Here, we explore four key strategies to transform generative AI experiments into tangible value, ensuring that the technology not only boosts productivity but also drives revenue growth.

1. Identify a Real-World Challenge

For AI to provide genuine value, it must address a specific business challenge. Rahul Todkar, Head of Data and AI at Tripadvisor, highlights that a crucial starting point for successful AI implementation is pinpointing the exact needs of users. For Tripadvisor, this meant tackling the complexities of trip planning, a common pain point for travelers. Leveraging generative AI, they developed the Trip Planning Solution to provide personalized recommendations, enhancing the user experience and solving real customer issues.

Pro Tip:
Focus on challenges where generative AI can simplify or add value to existing processes. Generative AI is particularly suited to tasks that involve personalization, recommendation systems, and customer service.

2. Choose the Right Technology Foundation

Building a successful AI solution starts with having the right technological foundation. Tripadvisor’s Trip Planning solution was only made possible through robust data architecture. Their team consolidated all necessary data using Snowflake’s AI Data Cloud, ensuring seamless access to data for AI model training and development.

Key Insight:
Generative AI projects benefit from combining commercial language models (like OpenAI’s GPT series) with internally-developed systems. For Tripadvisor, this approach allowed them to deliver personalized, contextually relevant recommendations.

Pro Tip:
Invest in scalable, cloud-based solutions for data storage and processing to support the demands of generative AI. A unified data platform helps teams more effectively manage and integrate data, speeding up deployment.

3. Transform Use Cases into Revenue

The ultimate measure of an AI project’s success is its impact on revenue. According to Todkar, personalized AI recommendations have tripled user engagement on Tripadvisor, demonstrating a clear link between customization and increased profitability.

For example, when users search for trip ideas, the tool provides tailored suggestions based on user preferences, like vegetarian dining options or family-friendly accommodations. By curating recommendations that resonate with users’ needs, Tripadvisor has significantly boosted engagement—and, consequently, revenue.

Pro Tip:
Identify revenue-generating touchpoints in the user journey and enhance them with AI-driven personalization. This approach not only improves customer satisfaction but also drives higher conversion rates and monetizes your website faster.

4. Make Long-Term Innovation Plans

Generative AI's capabilities are expanding, and Tripadvisor is already working on integrating AI into new areas, like review summarization and image-based recommendations. Summarizing reviews into key points helps users make quick, informed decisions without sifting through countless reviews. In addition, with a library of over half a billion images, Tripadvisor aims to use gen AI to tailor visual content to user preferences, enhancing the user experience even further.

Key Insight:
Businesses need a roadmap for continued AI integration. As generative AI becomes more versatile, companies can look beyond initial deployments to find additional use cases that enrich user interactions and deepen engagement.

Pro Tip:
To maintain momentum, allocate resources for ongoing research and development to explore future applications of AI, including interactive and multimodal experiences.

Conclusion
The transition from generative AI experiments to real business value lies in aligning the technology with business goals, building on a solid data foundation, focusing on revenue-oriented use cases, and planning for long-term innovation. For companies like Tripadvisor, generative AI is already making a measurable impact on user engagement and revenue. As more businesses learn to harness this powerful tool, gen AI’s potential to drive productivity and profitability will continue to grow.