SAN DIEGO, Oct. 11, 2017 /PRNewswire/ -- A whopping 80
percent of enterprises are investing today in AI, but one in three
business leaders believe their company will need to invest more
over the next 36 months to keep pace with competitors. At the same
time, enterprises are anticipating significant barriers to adoption
and are looking to strategize against those issues by creating a
new C-suite position, the Chief AI
Officer (CAIO), to streamline and coordinate AI adoption.
These results come from a survey of 260 large organizations that
operate globally, conducted by leading technology industry market
research firm Vanson Bourne on behalf of Teradata (NYSE: TDC), the
leading data and analytics company.
Experience the interactive Multichannel News Release here:
https://www.multivu.com/players/English/8075951-teradata-state-of-artificial-intelligence-ai-for-enterprises/
"There is an important trend emerging evident in this report —
enterprises today see AI as a strategic priority that will help
them outpace the competition in their respective industries," says
Atif Kureishy, Vice President,
Emerging Practices at Think Big Analytics, a Teradata company. "But
to leverage the full potential of this technology and gain maximum
ROI, these businesses will need to revamp their core strategies so
AI has an embedded role from the data center to the boardroom."
Companies are Doubling Down on AI Investments
The survey results found that companies are bullish and expect
their AI investments to be worth the upfront cost.
The industries where respondents expect to see the most impact
from AI are IT, technology and telecoms (59 percent); business and
professional services (43 percent); and customer services and
financial services tied for third (32 percent).
The top three challenges where businesses expect AI to drive
revenue are product innovation/research and development (50
percent); customer service (46 percent); and supply chain and
operations (42 percent). This mirrored some of the top areas of AI
investment, which include customer experience (62 percent), product
innovation (59 percent) and operational excellence (55
percent).
While adoption rates are high and companies expect AI to prove
its worth, there is a lot of opportunity for future
implementation:
- 80 percent of respondents report that some form of AI is
already in production in their organization, although 42 percent
say that there is lots of room for further implementation across
the business.
- 30 percent still believe that their organization isn't
investing enough and will need to invest more in AI technologies
over the next 36 months to keep up with competitors in their
industry.
Challenges Lie Ahead for AI Realization
Almost all respondents are anticipating barriers to adoption and
ROI — as is the case with nearly every emerging technology.
Businesses are ready to continue to invest in AI, likely because of
the gains executives and IT decision-makers anticipate in cost and
time savings, but lack of IT infrastructure and lack of access to
talent are cited as the leading barriers. Surprisingly, business
leaders are not as concerned about the impact AI and automation
will have on employee morale — only 20 percent see this as a
barrier — and even less, 19 percent, are worried about making a
business case for AI.
- 91 percent expect to see barriers to AI realization, with lack
of IT infrastructure (40 percent) and lack of access to talent (34
percent) leading the challenges, followed by lack of budget for
implementation (30 percent); complications around policies,
regulations and rights (28 percent); and impact on customer
expectations (23 percent). By contrast only 19 percent view a weak
business case for AI technologies as a concern and only 20 percent
are concerned about the impact of AI and automation on employee
morale.
- Businesses anticipate about a half-and-half split between
revenue increases (53 percent) and cost/efficiency savings (47
percent) from their AI investments.
- Only 28 percent of respondents say that their organization has
enough trained people internally to buy, build and deploy AI.
How Businesses are Strategizing to Extract ROI from
AI
While executives currently rely on existing technology leaders like
CIOs and CTOs to steer AI adoption and strategy, they believe the
future of AI will be so relevant for creating a strategy across
business practices that they will need a CAIO (Chief AI Officer) to
coordinate and mandate implementation throughout the
enterprise.
- The CIO (47 percent) and CTO (43 percent) are leading the
effort today, but 62 percent of respondents say they are planning
to hire a dedicated role — a CAIO — to lead the effort in the
future.
- Companies expect a 99% ROI in the next five years for every
dollar invested today and 187% in ROI over the next 10 years.
- The industries that most anticipate positive impacts are: IT,
technology and telecoms (59 percent); business and professional
services (43 percent); consumer services (32 percent); financial
services (32 percent); and manufacturing and production (31
percent).
What it Means
Tech companies have been promising AI as a robust solution and
business strategy for the past few years, and this survey shows
businesses are realizing the benefits of AI adoption today.
"As we continue to adopt AI solutions across our business, we're
finding it is a proven differentiator for creating opportunities to
streamline our operations and drive revenue," says Nadeem Gulzar, Head of Global Analytics, Danske
Bank. "Finding the right talent is always a challenge in
emerging tech fields and having service-based options, as well as
off-the-shelf, will be important to fill the gap as we continue to
invest in this technology."
Enterprises expect AI to be a technology with longevity,
planning to double their investment in five years and triple it
within 10 years. But to maximize this ROI, companies realize they
must reimagine how AI will disrupt all aspects of their businesses
and create a suitably agile strategy to gain ROI.
More Information
Download the accompanying survey report and infographic now, at
http://www.teradata.com/ai.
About Teradata
Teradata helps companies achieve high-impact business outcomes.
With a portfolio of business analytics solutions, architecture
consulting, and industry leading big data and analytics technology,
Teradata unleashes the potential of great companies. Visit
teradata.com.
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SOURCE Teradata