Investment in AI Despite Brands Ruling It Out [updated]

Artificial Intelligence (AI) off late has been a path-breaking intervention for the IT industry. According to an article published in Harvard, it was shared AI as a new tool in reshaping businesses however, many assume this is happening at a blistering pace. And there were various arguments about this too where in another article by HBR it was concluded that despite having promising feel with AI many organizations" efforts are falling short.

This speculation was brought into the picture when Arvind Krishna (CEO IBM) shared his experience with AI. Where he shared that many brands ruled out AI because of the data challenges that were involved in it to take care of. According to him, data challenges is the major reason why their clients and various other brands have eliminated AI from their operations. Furthermore, it was revealed that the cost for data preparations and collection was quite shocking for some companies.

Is AI being introduced into the corporates?

According to a recent survey, it was found that brands like Capital One, JPMorganChase, and TD Ameritrade ruled out AI from their systems, however, nearly 75 leading brands which are still considering investing in AI capabilities. However, these companies that are thinking about adopting AI capabilities sceptical too about the tech. Here are some interesting facts you should be paying attention to:-

1.Investment in AI is on a rise however its pace may slow down:

Firms till date have spent nearly $50MM on the AI Capabilities which was 39.7% previously in 2019 and by the end of 2020 it will boil up to 64.8%. Now the interesting fact is that the speed of investment may slow down despite when the statistics confirm them that 91.6% of the researchers shared that there was a rise in the investment on Big data & AI investments. 46.9% of these researchers reported that the pace of the investment in AI is boiling down.

Now the interesting part of all this is that previously organizations felt the urge to invest in the AI capabilities you should note that previous investment in the AI capabilities by organizations was happening. This could be because companies have invested in various investments which they must digest first or witness the return on the investment.

2.A is being implemented early where most firms are experimenting:

91.5% of the organizations have reported a confirmation of them investing in the AI capabilities.

Despite a huge chunk of organizations having been investing in the AI capabilities, the surprising thing is the solutions still remain at an early stage. While there are only 14.6% organizations which have deployed AI capabilities into widespread production. Furthermore, around 65.8% of the organizations have reported that AI at present to a great extent is still at the production stage where 92.6% of the organizations have admitted that AI initiatives are underway in some way still.

3.AI is still being viewed as the most disruptive emerging technology:

Despite when there"s a fall in organizations taking up AI/Machine Learning from 80% to 69.5% even then AI is being viewed as by the end of 2020. However, statistics confirm that AI has jumped from the ladder from just being a name to the most disruptive tech from just a name to an option amongst cloud computing.

4.Adoption of AI is still a challenge:

In the past few years, adoption for disruptive tech has continued its legacy of being challenging for most companies with 73.4% companies reporting an ongoing challenge toward adopting it and 90.9% citing cultural issues may have things like people, process and obstacles towards principals.

5.Companies struggle to become data-driven:

It has been observed that the companies are struggling with the issue of data security as been highlighted by IBM"s Krishna. There are only 37.8% of the organizations that have reported that they have created a data-driven organization with AI. within this year it is being believed that AI will still continue to be as promising as it was previously. However, this clearly implies that organizations need to spot a way to execute and adapt to this tech if the organization is expecting to get results in their business. And this to a great is a people-driven challenge no technological challenge.