Long-Term Roadmaps Are Top Enterprise AI Priority, ISG Study Finds
February 22 2024 - 10:00AM
Business Wire
Survey of global AI decision-makers finds
enterprises plan to double the number of AI-enabled applications by
the end of 2024
New survey research from leading global technology research and
advisory firm Information Services Group (ISG) (Nasdaq: III) finds
building a long-term AI strategy is the top priority for enterprise
AI decision-makers.
Forty-two percent of respondents to the ISG Market Lens™
Artificial Intelligence Study said creating a long-term AI strategy
or roadmap is one of their organization’s top three priorities,
followed by 37 percent who said identifying AI use cases that build
new revenue streams and 34 percent who prioritize AI use cases that
improve customer experience.
The study was conducted globally in January 2024 and covered 200
executives with decision-making responsibility for AI initiatives
and applications within IT and the business.
“Enterprises currently have an average of 251 AI-enabled
applications, including those in pilot or beta mode, a number they
expect to nearly double to 488 by the end of 2024. This is a shift
in AI spending from two percent of the IT budget in 2023 to 3.7
percent in 2024,” said Alex Bakker, ISG Distinguished Analyst and
co-author of the ISG study.
“These AI-enabled applications are wide-ranging, covering
analytics, customer experience, HR, supply chain, procurement and
more,” Bakker continued. “A long-term strategy is critical for
guiding this rapid growth and ensuring AI investments are in line
with business, revenue and customer experience goals.”
Measuring their organization’s performance against the top AI
priorities, respondents rated their progress toward a long-term
strategy positively. Forty-eight percent of survey respondents said
their business is doing better than peer companies at formulating a
long-term AI strategy, while 42 percent said their AI-supported
customer experience is better than peers. However, 27 percent say
they are trailing their peers when it comes to using AI to generate
new revenue streams.
Respondents say the most valuable AI use cases over the next two
years will be cost and value optimization (rated most valuable by
26 percent of respondents), predictive operations such as supply
chain (15 percent), and customer-facing recommendation engines (14
percent). In terms of use cases, cost optimization ranks highest
across all industries, but other use cases vary by industry. For
instance, recommendation engines rank second in banking, financial
services and insurance (BFSI) and retail, while predictive
operations rank second in the energy and manufacturing sectors. In
healthcare, quality assurance ranks second as the most important
use case.
“Enterprises expect AI to come at greater cost and are willing
to pay 7 percent to 8 percent more for applications with AI
functionality,” said Michael Dornan, principal analyst and
co-author of the study. “Though the highest proportion (30 percent)
of respondents said efficiency is their organization’s primary
motivation for enabling AI technologies, AI is currently driving up
costs across the business more than it is saving through
efficiencies.”
Dornan added: “Twice as many enterprises say their spending on
security, cloud, CX and other IT initiatives is increasing compared
with those who say it is falling, with AI considered the cause of
the increase in around three-quarters of these cases. Even still,
enterprises are placing the most value on achieving AI’s promise of
cost and labor efficiencies over the coming two years.”
ISG Market Lens™ buyer behavior studies combine findings from
surveys of senior-level global executives with expert ISG research
and analysis on market trends and strategic business initiatives.
Recent studies explored application development and maintenance ,
cost optimization, cybersecurity, global capability centers,
network modernization, banking and the future workplace.
Contact ISG for more information on ISG Market Lens
research.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading
global technology research and advisory firm. A trusted business
partner to more than 900 clients, including more than 75 of the
world’s top 100 enterprises, ISG is committed to helping
corporations, public sector organizations, and service and
technology providers achieve operational excellence and faster
growth. The firm specializes in digital transformation services,
including automation, cloud and data analytics; sourcing advisory;
managed governance and risk services; network carrier services;
strategy and operations design; change management; market
intelligence and technology research and analysis. Founded in 2006,
and based in Stamford, Conn., ISG employs more than 1,600
digital-ready professionals operating in more than 20 countries—a
global team known for its innovative thinking, market influence,
deep industry and technology expertise, and world-class research
and analytical capabilities based on the industry’s most
comprehensive marketplace data. For more information, visit
www.isg-one.com.
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Press Contacts:
Will Thoretz, ISG +1 203 517 3119 will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG +1 978 518 4520
isg@matternow.com
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