AI seems to be the key phrase in every business arena, from analytics to marketing, a discussion on the potential benefits of AI is inescapable. But is AI actually generating value for enterprises?
According to the 2019 Artificial Intelligence Global Executive Study and Research by MIT Sloan Management Review and BCG; Nine out of 10 respondents agree that AI represents a business opportunity for their company.
Yet this vote of confidence comes with its own set of doubts. The report (that surveyed 2,555 executives representing 29 industries and 97 countries) states that 45% perceived some risk associated, which is an 8% increase since the last survey in 2017. The report, which also contains 17 in-depth interviews with leading experts, provides an insight into what businesses can achieve with AI and what exactly the real success with AI looks like.
The survey states that 93% of executives worldwide expect some value from AI, but 65% of them reported that they do not see any value from the investments they have made so far. Around 40% of the organizations are making a significant investment in AI but do not report any business gains from AI yet. For those organizations that have invested in high-risk AI projects, 50% have seen a certain level of value, but among businesses that invest in low-risk projects, only 23% of enterprises have seen gains.
Interestingly enough, the perceived risk of AI was the highest in China. Almost 71% of enterprise respondents in the country view AI as a risk as well as an opportunity.
The report categorized survey responses into four levels of AI adoption success and sophistication and the most advanced companies have been categorized as Pioneers. In China, Pioneers seem to have a more positive outlook when it comes to AI generated revenue compared to their counterparts around the world. Around 65% of Pioneers from China expect to derive AI related gains (versus 46% worldwide); on the other hand, only 23% Pioneers from the country are expecting cost-savings versus 25% Pioneers worldwide.
The report even states that businesses that drive value from AI are more likely to integrate it with their corporate strategy. Most respondents believe that the future value of AI is in the sphere of revenue growth rather that cost savings.