Key Insights from Snowflake’s New Research on the ROI of Generative AI

Key Insights from Snowflake’s New Research on the ROI of Generative AI

Artificial intelligence is often framed as a threat to employment. Headlines frequently focus on automation and job displacement.

However, new research from Snowflake, in collaboration with Omdia (by Informa TechTarget), suggests the reality is more nuanced.

In its report “The ROI of Gen AI and Agents,” Snowflake surveyed 2,050 business and technology leaders across 10 countries. The findings challenge the dominant narrative around AI and work.

Instead of widespread job destruction, the report shows a net positive impact on employment, particularly in technical roles such as IT operations, cybersecurity, and software development.

At the same time, the research highlights an important constraint: AI adoption is being limited not by the technology itself, but by data readiness, governance, and skills.


Key Excerpts from the Snowflake Report

On Job Creation vs Job Loss

“77% of organizations report AI-driven job creation, compared to 46% reporting job losses.”

This suggests AI adoption is leading to workforce restructuring rather than pure automation-driven layoffs.


On ROI From AI Investments

“Organizations report earning roughly $1.49 for every dollar invested in AI.”

Among early adopters, 92% report positive ROI, reinforcing that AI is moving beyond experimentation into operational value.


On the Real Bottleneck: Data

“96% still face significant challenges with data quality, integration with legacy systems, and employee skills.”

In other words, the limiting factor is not AI capability—it is organizational readiness.

AI and the Workforce

Three Takeaways

1. AI Is Reshaping Jobs, Not Eliminating Them

The research shows both job creation and job loss occurring simultaneously.

The strongest gains are in technical roles:

  • IT operations (+56%)
  • Cybersecurity (+46%)
  • Software development (+38%)

Meanwhile, roles like customer service and data analytics are seeing reductions as repetitive tasks become automated.

The broader pattern: AI changes the composition of work rather than simply reducing it.


2. Data Infrastructure Is the Real Competitive Advantage

Nearly 8 out of 10 organizations report data challenges when scaling AI.

Key issues include:

  • Data silos
  • Poor data quality
  • Lack of AI-ready datasets

Only 7% of organizations say most of their unstructured data is AI-ready, highlighting a major gap between AI ambition and operational reality.


3. AI Is Becoming Embedded in Everyday Operations

The report shows AI is rapidly moving into production environments.

Examples include:

  • 62% of IT operations teams using AI
  • 59% of data analytics teams using AI
  • 53% of cybersecurity teams using AI

One striking statistic:

Nearly 48% of all code is now AI-generated.

This signals that AI is no longer a novelty—it is becoming a core layer of enterprise productivity.


Three Questions for the Future

1. Will Workforce Growth Continue as AI Matures?

Early adopters report net job creation, but as automation improves, the balance between job creation and elimination could shift.

The long-term employment trajectory remains uncertain.


2. Will Data Governance Become the New Strategic Discipline?

If AI success depends on trusted data infrastructure, organizations may increasingly compete on data governance, data quality, and architecture, not just algorithms.


3. How Will AI Change the Skill Requirements of Knowledge Work?

If nearly half of all code is AI-generated, the role of professionals may shift toward:

  • AI orchestration
  • problem framing
  • system supervision

This could redefine what expertise looks like across technical and business roles.


Closing Thought

Snowflake’s research highlights a key reality: AI’s impact on work is more evolutionary than revolutionary.

The biggest winners may not simply be the organizations that adopt AI fastest—but those that combine AI capability with strong data infrastructure, governance, and workforce skills.

The future of work will likely be shaped by a simple equation:

AI capability + data readiness + human expertise = sustainable competitive advantage.


Comments

7 responses to “Key Insights from Snowflake’s New Research on the ROI of Generative AI”

  1. […] That is where Snowflake’s recent research, produced with Omdia by Informa TechTarget, is helpful. In my related DataJD article, I broke down the broader business findings from the report, including AI’s effect on hiring, productivity, and operational return. Read that DataJD analysis here. […]

  2. […] In the business world, Snowflake’s latest research shows that organizations are seeing measurable ROI from AI while still struggling with governance and data quality. I summarized those broader findings in a companion article on DataJD, which is useful context for lawyers trying to separate substance from hype. Read the DataJD article here. […]

  3. […] Snowflake’s research found that 96% of organizations still face significant scaling challenges tied to data quality, data readiness, legacy integration, and skills. I broke down those broader findings on DataJD, and they are especially relevant for law firms because legal work depends on trust, supervision, and controlled access to sensitive information. See the DataJD breakdown here. […]

  4. […] Snowflake’s recent report argues that AI is delivering measurable value while still running into major data and governance bottlenecks. I explored those larger business implications in a companion DataJD article, which matters here because litigation data is rarely clean, neat, or fully standardized. Read the DataJD post here. […]

  5. […] Snowflake’s research supports that more nuanced view. In the broader market, organizations are reporting both job losses and job creation from AI, with a net positive tilt overall. I broke that down in my related DataJD article, which is a helpful starting point for legal readers who want the business context before applying it to law practice. Read the DataJD article here. […]

  6. […] Snowflake’s research found that organizations are seeing real return from AI but are still constrained by data readiness, governance, and operational integration. I explored that broader business picture in my DataJD article, which is worth reading alongside this legal version because lawyers increasingly operate inside the same enterprise technology realities as everyone else. Read the DataJD article here. […]

  7. […] Key Insights from Snowflake’s New Research on the ROI of Generative AI […]

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