Fueled by success stories over the past year and a healthy dose of FOMO, companies are doubling down on AI, according to a recent survey of 1,200 global IT leaders from 20 industries including financial services, health care, transportation, IT and logistics.
“IT executives are gaining powerful value from their AI investments,” said Bruce Orcutt, Chief Marketing Officer at ABBYY, the company that commissioned the June 2024 ‘State Of Intelligent Automation Report: Impact of the Economy on AI Priorities,’ conducted by Opinium Research.
“Notably, more than half of the leaders surveyed stated higher quality products and projects, along with faster delivery of their products to customers. More than a third reported improved customer service outcomes. It’s no surprise they achieved twice the ROI by leveraging AI in their intelligent automation initiatives to accelerate the improvement of complex processes and putting data to work.”
Big Returns on AI Investments
Almost half of enterprise executives saw a 2X return on their AI investments in 2023, up from 43% in 2022. On the subject of acceleration, 37% of the companies included in the survey have even condensed their timetable to integrating AI, choosing to adopt three-to-five-year plans rather than extend their AI goals over a longer period of time.
Ninety-six percent of those surveyed plan to increase AI investment in the next year, according to the survey, and of those, 40% plan to raise their budget by as much as 30%.
AI isn’t a buzz word anymore- many firms see it is as the ticket to staying competitive. The fear of missing out can be a big motivator- miss out, and you might as well be playing catch up with a calculator.
According to the June 2024 survey, 63% of the IT leaders worried their company will fall behind if they don’t adopt AI. The companies included in the survey are based in six countries, the U.S, UK, Germany, France, Australia and Singapore. Among the U.S. respondents, an average of $650,000 was spent last year at each firm to boost their AI.
Another survey, conducted by EY, formerly known as Ernst & Young, found similar results. In their recent AI Pulse Survey, authors Dan Diasio, EY Global Artificial Intelligence Consulting Leader, Traci Gusher, EY Americas Data and Analytics Leader, and Samta Kapoor, a Contributor, state that “Artificial intelligence is redefining the competitive business landscape, with leaders actively investing to capitalize on its transformative promise.”
“This sentiment follows a year in which AI investments had already significantly increased in pace. Just three years ago about half of senior leaders said their organization spent less than 5% of its total budget on AI investments. In contrast, today, 88% of those same leaders spend 5% or more of their total budget on AI. It’s a number that is set to grow even higher, as half of senior leaders said they would dedicate 25% or more of their total budget toward AI investments in the coming year.”
AI is being considered more and more as part of corporate growth strategies. According to the AI Pulse Survey, among the companies already investing in AI, they will continue to pour more money into it. The survey found they will likely invest at least $10 million in the next year, collectively.
Looking at performance metrics, such as employee productivity, cybersecurity, creating competitive advantages and production innovation, the companies that are investing more than 5% in AI are seeing better results in all categories than companies that are investing less than 5%.
As with all AI investing, the issue of responsible and ethical practices remains at the forefront. According to the EY report, “The surge in executive interest in responsible AI marks a pivotal shift in business strategy, placing ethical considerations at the forefront of AI adoption. To navigate this new terrain, companies should consider investing in comprehensive AI governance frameworks and strategies for mitigating bias, thereby safeguarding that their AI systems uphold fairness and transparency. Firms that excel not only distinguish themselves in a competitive marketplace but also fortify themselves against future regulatory issues.”
