Discussions about Artificial Intelligence seem to be everywhere. Whether it be through Apple’s neural engine to the rise of self-driven cars; the growth of artificial intelligence is one that is very bright and has the potential to be a significant player in many different industries. Business seems to be one of the sectors where artificial intelligence can make a real difference in productivity and outreach. Recently, there was a study done by the Boston Consulting Group and MIT Sloan Management Review where they did interviews with more than three thousand business executives, managers, and analysts in 112 countries and 21 industries. You can learn more about their in-depth research through their published study, Reshaping Business With Artificial Intelligence.
This research was able to pinpoint the significant gaps that are occurring between companies who are understanding and adopting Artificial Intelligence and those who are falling behind in picking up the concept. The companies who are leading the charge with Artificial Intelligence have been able to plan new businesses as well as streamline existing processes, and they have senior management support for each initiative. It was recorded that in the technology, media, and telecommunications industries, 72% of the respondents expect Artificial Intelligence to have a major impact on product offerings within the next five years. This was the highest expectations for AI. These improvements have been anticipated to deliver Business Process Outsourcing gains in both the Financial Services and the Professional Services industries.
Another aspect in which Artificial Intelligence will make an impact is in customer-facing activities such as marketing, automation, support, and service. Along with IT and supply chain management, these areas are predicted to be the most affected by AI within the next five years. With Artificial Intelligence, we can expect more efficient distributed order management systems and Enterprise Resource Planning systems that will be able to scale to support new business models amongst other improvements. Artificial Intelligence also seems to have the ability to allow companies to acquire and maintain a competitive advantage according to 84% of the respondents and of that 75% anticipate that it will enable them to pursue new businesses and ventures. According to the research, AI will spark all new business models and change the competitive nature of these industries as another 69% of the respondents anticipate their competitors to use it for an advantage as well.
It is important to note, that while there have been major expectations with the relationship between Artificial Intelligence and business, only 23% of the respondents in the study have actually incorporated it into their processes and service offerings. With that, another 23% have pilots in progress while 54% have no adoption plans in the works and another 22% have no plans at all currently. So it is interesting that even though there is a bright future for businesses using Artificial Intelligence, not a lot of companies are looking to make the transition to adopt it into their practices. With all the research of the benefits it has, this is sure to change in the years to come.
