Most Enterprises Invest in AI, but See Challenges
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Most Enterprises Invest in AI, but See Challenges
Eighty percent of companies have deployed AI, and many plan to expand despite barriers to adoption. With ROI outlook strong, many will hire a chief AI officer. -
Most Embrace AI
80% of the IT and business decision-makers surveyed already have AI implementations in place, and 42% see room for a lot more AI tech across the business. -
Spending to Rise
At the enterprises surveyed, the average spend on AI is $19.1 million, but 30% of them believe their current investment isn't big enough, and they plan to increase it over the next 36 months. -
Biggest ROI
More than half of the participants (53%) believe the greatest returns from AI investments will come from revenue increases, and almost half (47%) cited cost savings. -
Top Areas in Which AI Drives Revenue
Product innovation/R&D: 50%, Customer service: 46%, Supply chain and operations: 42% -
Top Areas for AI Investment
Customer experience: 62%, Product innovation: 59%, Operational excellence: 55% -
Making Money
For every dollar invested today, the companies surveyed expect a $1.23 ROI in the next three years, $1.99 in the next five years and $2.87 over the next 10 years. -
Relying on Partners
Only 28% of participants said their organization has enough trained employees to buy, build and deploy AI. Most depend on vendors and partners for needed skills. -
Global Challenges to AI Deployments
Lack of IT infrastructure: 40%, Lack of access to talent: 34%, AI nascent and unproven: 33%, Lack of budget for implementation: 30% -
Only in America
The Americas is the only region where the lack of budget for AI implementations (37%) edges out the lack of infrastructure (36%) as the main barrier. -
Few See Threat to Workforce
Only 21% of participants believe that AI will replace humans for most enterprise tasks in their organization by 2030; 45% believe humans and AI will coexist and perform different tasks; and 29% believe AI will enhance human capabilities. -
Who's in Charge?
Currently, businesses are turning to their CIO and CTO for AI strategy, with 47% relying on the CIO and 43% on the CTO. -
Dedicated AI Exec
Only 8% of companies in the survey already have a chief AI officer, but 61% expect to employ one in the future.
Artificial intelligence (AI) has the potential to revolutionize enterprises by increasing revenue, enhancing efficiency and providing a better experience for customers. But business leaders see serious challenges to implementation and return on investment (ROI). A Teradata study entitled "State of Artificial Intelligence for Enterprises" shows that four out of five enterprises have AI implementations in place, and one out of three believe they will need to invest more in AI over the next 36 months to keep pace with the competition. The industries that most anticipate positive impacts from AI are: IT, technology and telecom; business and professional services; consumer services; financial services; and manufacturing and production. The biggest potential might be in automating repetitive tasks, delivering new strategic insights and automating areas of knowledge work. But those benefits won't come easy. Virtually all the participants in the survey anticipate major hurdles, including inadeqate infrastructure, talent and budget. Perhaps surprisingly, only one in five worries about the impact of AI and automation on jobs and employee morale. Most believe the future of AI will be so significant for creating a strategy across business practices that they plan to install a chief AI officer (CAIO) to coordinate and mandate implementation throughout the enterprise. They also intend to work with vendors that will help them buy, build and deploy AI solutions. The Teradata study was conducted by Vanson Bourne, which surveyed 260 IT and business decision-makers at a vice president or higher level from organizations in the Americas, Europe and the Asia/Pacific arena with a global revenue of more than $50 million a year.