Hilary Carter | 05 December 2024
Innovation and GenAI: Open source, cloud-powered, and transforming industries
Since ChatGPT became a household name just over two years ago, it’s indisputable that Generative AI (GenAI) has ushered in a new era of technological transformation, challenging businesses and governments to harness its full potential while managing certain limitations and risks. While AI has long been used by organizations, GenAI as a more recent technology is just beginning to demonstrate its impact, enabling businesses across industries to unlock unprecedented levels of efficiency, accelerated innovation, and perhaps most importantly, economic value.
While GenAI may be in its cradle stages, new data shows that GenAI is widely embraced, and that open source and GenAI go hand in hand. As organizations fully leverage the potential of this groundbreaking technology, LF Research is proud to support their decision making with new insights into the open source value proposition as it relates to GenAI adoption and deployment.
In our second report on GenAI in less than 12 months in partnership with LF AI & Data, we were fortunate to this time join forces with CNCF. Together, we explored the role of open source in organizational GenAI activity, focusing on its role in ensuring transparency, scalability, and trust, and diving into how cloud native technologies are being leveraged in both GenAI development and deployment. What we have uncovered validates the significance of both cloud native as a driver of GenAI, and the significance of open source itself in this burgeoning domain, and that’s an exciting development.
First, to understand just how significant GenAI is, the report reveals that 94% of surveyed organizations are using GenAI, with applications ranging from process automation to content and code generation. 92% of respondent organizations ranked GenAI important, with 51% considering it extremely important.
Importantly, 41% of the infrastructure supporting these initiatives is open source, reflecting its critical role in accelerating adoption. Organizations recognize the advantages of transparency, cost efficiency, and regulatory alignment, with 71% affirming the positive influence of open source on their decision-making processes.
Cloud Native Technologies: Powering Scalability
Cloud-based infrastructure dominates GenAI development, with 65% of organizations relying on the cloud to build and train their models. Kubernetes, a cornerstone of cloud native technology, has emerged as a critical enabler for hosting scalable workloads. Half of the organizations surveyed use Kubernetes to manage some or all of their GenAI inference tasks, streamlining operations while reducing complexity. The flexibility of cloud and hybrid environments ensures organizations can scale their AI initiatives efficiently while meeting data security and latency requirements.
Productivity, Creativity, and Innovation
One of the interesting findings of the report demonstrates the impact of GenAI extending beyond technological transformation alone, changing how people work, and doing so for the better. An impressive 79% of organizations report improved productivity through GenAI, with many noting gains in creativity and the development of new skills, allowing teams to spend more time in areas of differentiation and personalization of work. These benefits underscore why businesses across industries are eager to embrace GenAI to stay competitive.
Open Source: A Catalyst for GenAI Adoption
For organizations leveraging GenAI, open source is more than a tool; it’s a strategic advantage. On average, 41% of the code supporting GenAI infrastructure is open source. Among high adopters of GenAI, this figure rises to 47%, highlighting the flexibility and innovation enabled by open collaboration.
Transparency and trust are key drivers, with 71% of organizations stating that the open source nature of a model or tool positively influences adoption. Cost efficiency is another major factor, as open source reduces licensing fees and fosters customization—both crucial for organizations navigating a rapidly evolving AI landscape. Additionally, 78% of organizations view the use of open source tools hosted by neutral entities as essential for ensuring compliance with regulations and maintaining trust. That’s good news for foundations like LF AI & Data and CNCF, who provide the structures that support precisely this kind of neutral governance.
An Open Future for GenAI
Looking ahead, openness will be vital. And it’s here that I save my favorite stat for the end: A remarkable 83% of respondents agree that AI must become increasingly open to foster trust, collaboration, and innovation. Transparency in source code not only fosters trust but also ensures alignment with regulatory standards—a priority for industries such as healthcare and finance.
In a world where trust can feel like it is in short supply, it’s encouraging to see the role that open source plays in creating trusted GenAI technologies. Just as sunlight is the best disinfectant, open source GenAI infrastructure will enable better, faster, cheaper, more secure, and ultimately, more trusted innovation by its very nature.
This report underscores that the road to responsible AI development lies in openness. By embracing open source, businesses not only gain access to cutting-edge tools but also contribute to a global ecosystem of shared innovation.
Now it’s up to organizations to unlock the full potential of GenAI by engaging in community-driven innovation, and take an active role in shaping a future that’s equitable and sustainable for all. Read the full report to discover how open source AI and cloud native solutions are driving the GenAI revolution.