This is an excerpt of my presentation at the IEEE Cloud Summit 2020 about How to drive Business Value with AI.
According to Accenture, 93% of Senior Executives assume their industry will be disrupted at some point in the next 5 years, but only 20% feel they’re well prepared to address it. But that is not the only reason to consider that topic a priority for any organization. While it is hard to stop the disruption of an industry, it might be possible to increase the performance of an organization by applying AI to a) develop new products, b) improve existing processes, c) augment and automate decision making processes. By doing so, the strategic scalers within the field can achieve a unique return on investment (ROI) on AI (Figure 1).
There are two reasons for a low ROI on AI. The first one is spending time and money in re-inventing algorithms for the company that could be acquired through third party software solutions. The assumption to create a customized solution will pay off does not hold considering the maintenance, new developments and adjustments that are necessary. The biggest return comes from applying existing solutions to the use cases of an organization (Figure 2).
The second reason for a low return on investment on AI initiatives comes from failures in cultural transformation. The acceptance of new analytics solutions, the change of stakeholder working processes and the connection between technology and business operations are the biggest challenges (Figure 3).