Infosys: AI Adoption Drives Revenue Growth
January 17, 2017
research report polled 1,600 senior
business decision makers at large organizations across the world. The
report revealed a clear link between an organization’s revenue growth
and its AI maturity: Organizations who report faster growth in revenue
over the past three years were also more likely to be further ahead when
it comes to AI maturity. AI is perceived as a long-term strategic
priority for innovation, with 76 percent of the respondents citing AI as
fundamental to the success of their organization’s strategy, and 64
percent believing that their organization’s future growth is dependent
on large-scale AI adoption. While there are ethical and job related
concerns – 62 percent believe that stringent ethical standards are
needed to ensure the success of AI – most respondents seem optimistic
about redeploying displaced employees with higher value work. The
majority, 85 percent, plan to train employees about the benefits and use
of AI, and 80 percent of companies replacing roles with AI technologies
will retrain or redeploy displaced employees.
•Businesses expect noticeable AI adoption and growth by 2020: Organizations that have already deployed or have plans to deploy AI technologies expect to see a 39 percent average increase in revenue by 2020, alongside a 37 percent reduction in costs. 76 percent of IT and business decision makers see AI as pivotal to the success of their organization.
•Businesses plan to invest in skills development: In 80 percent of cases where companies are replacing roles with AI, organizations are redeploying or retraining staff to retain them in the business. Furthermore, 53 percent are specifically investing in skills development. Organizations that have fewer AI related skills are more likely to re-deploy workers impacted by AI adoption, whereas those with more AI-related skills are more likely to re-train employees, according to the study. The leading industries that plan to retain and retrain their workers are: fast-moving consumer goods (94 percent); aerospace and automotive (87 percent); energy, oil and gas (80 percent); and pharmaceutical and life sciences (78 percent). The research reveals AI will cause greater investment in workforces, specifically China (95 percent), France (90 percent), Germany (89 percent), the UK (82 percent), and the US (76 percent).
•Addressing ethical concerns is essential for AI success: Two-thirds of those surveyed have not fully considered the ethical issues related to AI, such as employee concerns about handing over control, and industry regulations. Further, 90 percent say their organization’s employees face challenges or concerns with AI adoption, and 88 percent report challenges or concerns from customers and suppliers. In total, 53 percent agree that ethical concerns are a significant obstacle to effective application of AI technology.
•Market and Industry results show differences: Based on the responses, companies in India and China are much more likely to state that they are ahead of their industry competitors when it comes to AI use, followed by Germany, the US, UK, France. Fast moving consumer goods (57%) and telecoms (48%) are much more likely to report that they have already felt AI disrupting their sector. Pharmaceuticals and life sciences reported the widest usage of AI technologies that are working according to their expectations, leading to the highest AI Maturity Index scores by industry.
•Businesses are at
the start of their AI journey: Only one in ten respondents that have
deployed AI technologies believe that their organization is fully
maximizing the current available benefits and capabilities of AI. The
majority (90 percent) report that their organization’s employees face
challenges or concerns relating to the adoption of AI. Around four in
ten respondents believe that the time to implement, ease of use and the
interoperability with other systems and platforms are areas of AI that
require the most improvement before it can be effective in their
organization. There are also areas of AI adoption that need to be
addressed with training, education and transparency in the workplace.
Safety of data (43 percent), job security (40 percent) and pay rates (30
percent) are the foremost areas of workforce concern despite the broadly
positive outlook for AI adoption.
•AI in action: Big data automation (65 percent) and predictive/prescriptive analytics (54 percent) are the primary AI applications today. On average, the companies surveyed have invested $6.7 million in AI in the last year, and have been actively using AI for an average of two years. The IT department is the leading adopter (69 percent), followed by operations (34 percent), business development (33 percent), marketing (29 percent) and commercial, sales and customer services (28 percent).
•Risk and reward: 71 percent agree the rise of AI in the workplace is inevitable, citing positive change for business prospects, employees and society. However, over half (51 percent) admit that cost reduction is an area of AI that requires the most improvement before it can be effective for their organization.
percent also report that their organization’s customers and suppliers
face challenges and concerns relating to the adoption of AI. Four in ten
point to a lack of understanding of the benefits and intended uses for
it, while 38 percent flag a general mistrust of the technology. A
similar number (37 percent) indicated their preference to work alongside
and interact with human workers rather than machines.