Reshaping business with Artificial Intelligence

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The gap between current reality about the use of the Artificial Intelligence in the companies and the expectations for the next five years was revealed in a global survey of more than 3,000 business executives, managers, and analysts in 112 countries and 21 industries. The survey results are being released in a new research report (“Reshaping Business with Artificial Intelligence: Closing the Gap Between Ambition and Action”) by MIT Sloan Management Review and The Boston Consulting Group. More than three-quarters of business executives expect artificial intelligence (AI) to create competitive advantage or new lines of business for their companies, but only about one in five companies has incorporated artificial intelligence in some offerings or processes today, and only one in 20 companies has extensively incorporated AI into its current offerings or processes. Less than 40% of all companies have an AI strategy in place, and while the largest companies – those with 100,000 employees or more – are the most likely to have an AI strategy, only half do have one. As regards to the job loss from AI, the survey found that less than half of participants (47%) expect their companies’ workforces to be reduced within the next five years, and almost 80% expect current employees’ skills to be augmented. Only 31% of respondents fear that AI will take away some of the current tasks in their own jobs.
Among the survey’s key findings are the following: three-quarters of respondents believe AI will enable their companies to move into new businesses. Almost 85% believe AI will allow their companies to gain or sustain a competitive advantage. Only about 15% of survey participants believe AI is currently having a large impact on their organization’s offerings and processes, but about 60% expect these effects to occur within just five years. Most organizations foresee sizable effects on information technology, operations and manufacturing, supply chain management, and customer-facing activities. More than 80% view AI as a strategic opportunity while almost 40% see AI as a strategic risk as well. A much smaller group (13%) does not view AI as either an opportunity or risk. The research has identified 4 clusters: Pioneers (19%, organizations that understand and have adopted AI. These organizations are on the leading edge of incorporating AI into their organization’s offerings and its internal processes); Investigators (32%, organizations that understand AI but are not deploying it beyond the pilot stage); Experimenters (13%, organizations that are piloting or adopting AI without deep understanding. These organizations are learning by doing) and Passives (36%, organizations with no adoption and little understanding of AI).

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