Artificial Intelligence Leaders Generate Greater Shareholder Value, Finds New Report from Accenture Research
June 15 2017 - 12:01AM
Business Wire
New research released by Accenture (NYSE:ACN) reveals that
companies with optimal artificial intelligence (AI) innovation
strategies generate greater shareholder value. But less than one
fifth of leading companies that leverage AI have achieved this
performance in recent years. These companies have demonstrated high
‘AIQ’ by combining strong in-house innovation and external
collaboration.
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Accenture’s report “Boost Your AIQ: Transforming into an AI
Business,” published in collaboration with the G20 Young
Entrepreneurs’ Alliance, assesses both the Fortune Global 100 and
Accenture’s list of Intelligent 100 pioneers in the development and
application of AI technologies, for the period of 2010 to 2016. In
order to measure their Artificial Intelligence Quotient (AIQ), the
research analyzes the level of both their in-house capabilities and
investments in AI as well as their commitment to partnering with
outside partners.
The research finds that only 17 percent of companies fall into
the high-performing “Collaborative Inventor” quadrant, while most
(57 percent) are still seen as “Observers,” with relatively low
levels of either in-house innovation or external collaboration on
AI. Collaborative inventors have seen their enterprise value (a
measure based on their market capitalization, debt and cash
positions) rise by an average of 4.2 percent since 2013, compared
to 2.3 percent for the remainder of the sample. Accenture Research
estimates that companies that can move from “Observer” status to
“Collaborative Inventor” could see their firm’s enterprise value
increase by 90 percent, on average.
“Artificial intelligence is one of the most powerful technology
innovations we have ever seen – transforming the way we work and
live,” said Paul Daugherty, chief technology and innovation
officer, Accenture. “Many companies are ready to go beyond the
experimental phase of AI, leveraging it to improve productivity and
create entirely new revenue opportunities. To become a high
performer, they will need to both develop their own technology,
data and people capabilities as well as become deeply involved in
the broader AI ecosystem.”
Innovation Strategy to Leverage Artificial
Intelligence
The research shows that companies must converge and integrate
three main factors to achieve high AIQ:
- Technology: Not only do
companies need to combine the constellation of sensors,
deep-learning algorithms, natural language processing and other
technologies – they must choose when to invest in proprietary
applications. For example, a chat bot may improve efficiencies, but
may not differentiate a brand as much as proprietary AI-based
products and services.
- Data: AI requires vast volumes
of data and securing that data is crucial to enable intelligent
systems to learn and improve. Adding to the complexity, most data
that is currently available to companies is unstructured or
disparate. To overcome these challenges, companies must update
their legacy systems to converge the data and embed AI at the
intersection to create intelligent products and services.
- People: AI calls for a diverse
range of expertise in different combinations – mathematics, data
science, neuroscience, behavioral psychology, linguistics and other
liberal arts – to both train and work with intelligent machines. At
the same time, AI will have an impact on the jobs and roles of
existing workers and many of the new skills do not yet exist in the
market. The research suggests that companies must strike the right
balance between reskilling the existing workforce and hiring
external talent. This includes partnering with universities to
create a talent pipeline – but also, with the emergence of the gig
economy – creating a more flexible working environment to attract
specialist freelancers.
“Success in AI cannot happen in isolation,” said Francis
Hintermann, global managing director, Accenture Research. “Our
analysis shows that creating AI innovations requires incumbents to
open up their technology, data and talent to work with specialist
startups and entrepreneurs. That requires them to transform their
innovation strategies and organizational cultures.”
About the Accenture Artificial Intelligence Quotient
(AIQ)
The Accenture Artificial Intelligence Quotient (AIQ) was
developed using a mix of publicly available data, qualitative
analysis and AI-powered web crawling tools. It is composed of five
parameters grouped into two indexes, AIQ for Invention and AIQ for
Collaboration. For each of the 200 companies (Fortune 100 and the
Intelligent 100), Accenture calculated one score per parameter
based on the relative positioning of that company vs the leading
companies. The averages of each index were used to set up cut off
points to define the four categories of companies (Collaborative
Inventor, Inventor, Collaborator and Observer).
About Accenture
Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy,
consulting, digital, technology and operations. Combining unmatched
experience and specialized skills across more than 40 industries
and all business functions – underpinned by the world’s largest
delivery network – Accenture works at the intersection of business
and technology to help clients improve their performance and create
sustainable value for their stakeholders. With more than 401,000
people serving clients in more than 120 countries, Accenture drives
innovation to improve the way the world works and lives. Visit us
at www.accenture.com.
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AccentureJohn Connolly, + 1 917 452
0837john.a.connolly@accenture.com
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