What Does AI Technology and Data Adoption Look Like in 2020?
Many businesses express a commitment to data-driven opportunity, but what does success look like in 2020? In the modern enterprise landscape, it’s extremely challenging to benchmark the adoption of digital and data technologies against peers.
As a leading provider of AI/ML solutions for businesses, Neural Technologies has a long history of delivering effective technology transformations for customers. The latest industry insight shows that journey is unlocking significant business benefits in 2020, but remains challenging for many.
Assessing the AI and big data landscape
AI technology and big data for business is now a core part of competitive advantage. Yet it remains one fraught with challenges according to the latest industry analysis.
The New Vantage 2020 Big Data and AI survey engaged with more than 70 leading global firms, primarily in the finance and healthcare space, to understand the current landscape. Their results indicate that 91.5% of Fortune 1000 firms are undertaking ongoing investment in AI, yet just 14.6% of firms report they have deployed AI capabilities in widespread production. Meanwhile 73.4% note effective big data adoption remains a real business challenge.
More than two-thirds of businesses participating in the New Vantage study were channeling investments greater than US$50mil into these technologies. That is a significant funding commitment when considering the challenges which companies admit in successful implementation of their programs.
Such results are not unique. In a survey of 2,500 executives undertaken by MIT Sloan Management Review, BCG Gamma, and BCG Henderson Institute, more than 90% of companies admit to having made at least some investment in AI, with just 40% having delivered returns.
These challenges come despite accelerating adoption of these technologies. McKinsey’s Global AI Survey released in November 2019 indicates a 25% year-on-year increase in AI adoption.
The New Vantage study highlights some of the key challenges in adoption. Over 90% of respondents reported that people, process, and culture remain the most stubborn hurdles, not the technology itself. Being able to demonstrate success can be a key part of that cultural transformation.
The reality is that big data application and AI technologies can deliver demonstrable value for enterprises today. Neural Technologies has 30 years of experience delivering return on investment for customers in industries such as telecoms, utilities, and finance.
Other hurdles have been identified in similar studies focused on AI adoption. In a study by tech training firm O’Reilly, 22% of respondents cited lack of institutional support as the most significant barrier to adoption. While institutional frameworks are critical, there remain very real opportunities to unlock the benefits of AI and big data for business in today’s environment.
Benefits in analysis
So what are the benefits? In June, 2020, IDC revealed in a survey of over 2,000 IT and line of business decision makers, employee efficiency, accelerated innovation, and enhanced customer experience were driving AI adoption.
Rollout of AI solutions was linked to a 25% increase in the above key indicators, creating higher margins and improved competitiveness.
The McKinsey global survey reinforces these benefits. Of those organizations which had adopted AI, a majority of executives surveyed noted that it had provided an uptick in revenue, and 44% said it had also reduced costs. Those companies which had most successfully embedded AI were enjoying far more scalable benefits, gaining a competitive advantage on their peers.
Use of big data also allows companies to create new revenue streams, while unlocking detailed business insight that improves efficiency and enhances operations. Boston Consulting Group estimates that big data generates up to 12% of total sales revenue for leading companies, regardless of the size or industry.
We know from our own experience how powerful the transformation to a data-driven organization can be. Neural Technologies’ digital transformation, revenue protection, and customer engagement solutions have consistently shown real enterprise value for customers thanks to the power of artificial intelligence and big data analytics.
The power of partnership
Neural Technologies has over 30 years’ experience delivering effective AI/ML solutions for customers around the world. We have a long history of working to provide customizable products that meet the unique needs of clients, unlocking the benefits of AI and data-driven opportunities in partnership.
In its 2018 report, The Big Leap Towards AI at Scale, Boston Consulting Group notes that “the question is not if companies will work with vendors and partners but how.”
Working with a successful platform partner like Neural Technologies enables enterprises to benefit from extensive AI experience, allowing them to access solutions which have a track record of proven business results.
In the IDC 2020 survey, enterprises reported spending around one-third of total AI lifecycle investment on data preparation and integration as compared to understanding and actioning data insight. Neural Technologies’ Optimus platform provides an open, adaptive source of data management and understanding that is easily integrated, and provides clear, real-time or near-real-time data insight.
AI and big data analytics represent transformational technologies for enterprises, regardless of size or industry. It’s clear however that many barriers to adoption remain, particularly around challenges of internal integration delivering return on investment. With a partner like Neural Technologies, enterprises gain access to that remarkable data opportunity, with the experience to deliver real business results.
Contact Neural Technologies to connect to data-driven opportunities which unlock value for your enterprise