Summary: There is increasing awareness that the greatest problems with artificial intelligence are not primarily technical, but rather how to achieve value from the technology.
Original author and publication date: Tom Davenport – March 27, 2020
Futurizonte Editor’s Note: According to the article, AI is a good technology, but not a good investment. That’s a surprise, but the research is solid.
From the article:
There is increasing awareness that the greatest problems with artificial intelligence are not primarily technical, but rather how to achieve value from the technology. This was a growing problem even in the booming economy of the last several years, but a much more important issue in the current pandemic-driven recessionary economic climate.
Older AI technologies like natural language processing, and newer ones like deep learning, work well for the most part and are capable of providing considerable value to organizations that implement them.
The challenges are with large-scale implementation and deployment of AI, which are necessary to achieve value. There is substantial evidence of this in surveys.
In an MIT Sloan Management Review/BCG survey, “seven out of 10 companies surveyed report minimal or no impact from AI so far. Among the 90% of companies that have made some investment in AI, fewer than 2 out of 5 report business gains from AI in the past three years.
This number improves to 3 out of 5 when we include companies that have made significant investments in AI. Even so, this means 40% of organizations making significant investments in AI do not report business gains from AI.”
NewVantage Partners 2019 Big Data and AI Executive survey—Firms report ongoing interest and an active embrace of AI technologies and solutions, with 91.5% of firms reporting ongoing investment in AI. But only 14.6% of firms report that they have deployed AI capabilities into widespread production. Perhaps as a result, the percentage of respondents agreeing that their pace of investment in AI and big data was accelerating fell from 92% in 2018 to 52% in 2019.
Deloitte 2018 “State of Enterprise AI” survey—The top 3 challenges with AI were implementation issues, integrating AI into the company’s roles and functions, and data issues—all factors involved in large-scale deployment.