The business value of AI

Takeaways to remember:

• AI is credited with decreasing operational expenses by more than 85% of advanced AI adopters. 
• AI is credited with 10-12% revenue growth (or erosion offset) by advanced AI adopters.
• The use of virtual agents alone provides considerable financial and operational benefits.

The following are some of the key takeaways from the new data:

• AI is a powerful economic stimulant.
• The financial impact of AI has been established.
• AI pays off when you go all-in.
• Time to value is sped up by investing in core AI "readiness."
• The ability of AI to “readiness” yields financial rewards in the short run.

During the present worldwide epidemic, a core set of technologies with AI at its heart has proved extremely important.

A few significant AI themes have emerged as particularly important:

• The pace of digital transformation is quickening.
• Companies that are tech-savvy are surpassing their competitors.
• While AI is critical to change, it is still underutilized.

AI is enjoying a (larger) renaissance.

Since the 1950s, artificial intelligence has been around. A sequence of AI investments froze the investments of early speculators. The AI floodgates have been opened thanks to advances in deep learning and other machine learning approaches. Industry incumbents that were reluctant to see AI's resurgence have had the need for AI imposed upon them. Big data, business intelligence, and sophisticated analytics are the future of artificial intelligence.

Revenue

Businesses say that their AI activities have resulted in a 6.3 percent rise in business unit revenue. AI piloting and implementation companies report a 4-7 percent increase in income. According to recent IBV research, virtual technology alone may be responsible for 3% revenue growth on average.

Cost

AI investments, according to cost executives, have yielded big results for their companies. Over the previous three years, 47% of companies have seen cost savings via improved process efficiency. Only a tiny percentage of respondents said AI implementation increased their net costs. Cost reductions are mentioned by 53% of AI adopters, compared to 40% in the piloting and implementation phases.

Common characteristics of AI leaders

Since 2014, the IBM Institute for Business Value has been monitoring the progress of AI in businesses. Over 20,000 C-level executives participated in a longitudinal study, which provided us with extensive historical data and context on success factors and hazards. Several different behaviors develop among successful AI adopters over the course of that six-year period:

• Begin with a top-down, strategic attitude.
• Prioritize investments in focused AI capabilities.
• Adopt a human-centered mindset

The following are practical steps that a company may take to accelerate AI growth and success.

• Don't bother with the proof-of-concept stage.
• Begin today, building on what you accomplished yesterday.
• Otherwise, you risk chaos if you don't follow AI engineering principles.
• Metrics should be aligned with important success drivers and hazards.
• Don't merely align with the business—embed yourself in it.

We have the following advice for firms in more advanced stages of AI, such as implementation, operation, and optimization:

• Create an AI playbook and enable people to put it into action.
• Make use of data scientists. Remind them that installing AI models isn't the only objective or the end-all aim of a project.
• Incorporate ethics into all you do.
• Don't merely operate at a large scale—innovate at a large scale as well.
• By involving ecosystem partners, you may ask for assistance.