Artificial Intelligence is the Next Frontier
If your company hasn’t already considered integrating artificial intelligence or its satellite technologies into its current processes, you might begin to find yourself significantly behind in the game by the end of the year.
Who adopts AI
Currently there are huge amounts of dollars being invested in AI, but studies done by McKinsey Global reveal that adoption is very low. In 2016, the hundreds of surveyed companies invested between $25-39 billion in artificial intelligence. Of the investing companies, 75% were tech giants in the industry. The other 25% were start-ups. That amount has tripled since 2013. Adoption nevertheless is low. 41% of the surveyed companies were uncertain about the benefits that AI could bring them. Only about 20% said they already adopted AI into their company. 40% said they are contemplating it, and only 9% found themselves simply experimenting with it.
When to begin adopting AI
The challenge for new adopters of AI seems to be their current familiarity with the tech world and tech systems integrated into their business processes and workflows.
According to McKinsey’s studies, those companies who adopted AI were already strong in the digital sector (telecommunications, high tech, automotive and assembly, and financial services). Those companies with less adoption were typically in the education sector, health care, and travel and tourism. Early adopters have usually been larger businesses, adopting AI in core activities, focusing on growth over savings, and adopting multiple technologies.
Successful AI adoption experiences
There appear to be five successful transformations that source value for AI adoption in companies. Case analyses have brought about more precise results and diagnoses through AI. AI has been effective at creating data ecosystems for businesses that manage large volumes of data. Applying tools and techniques into established systems has been an added value of AI, as well as developing workflow integration. Ultimately, AI has aided businesses in fostering an open culture and organization.
AI has created value already in smarter forecasting, optimizing production and maintenance, targeted sales and marketing, and providing enhanced user experiences.
2018 will be a year of significant investing in AI. Hopefully companies are looking into cost/benefit analyses and deciding early on how to begin integrating AI into their business.