Obviously, AI will transform the functionality of businesses, yet a lack of understanding of the technology and uncertainty as to who should lead it slows down adoption. This turn leads to the loss of a global business opportunity.
Earlier, a CIO or CTO’s role was to understand new and emerging technologies and advise them. They are also expected to have a better understanding of new technologies and their impact on their company is the recent technology revolution. It can prove to be challenging as innovation within AI continues at speed.While listening to business leaders discuss AI, these challenges are visible. Only 17 percent of managers were familiar with the concept of AI and its applications within their businesses, according to Deloitte. Therefore, it is clear that many business leaders either lack sufficient understanding or focus their knowledge only on one particular AI sub-set.
In many cases, business leaders and CEOs ineffectively integrate this technology into their services due to confusion about the optimal strategy for the effective implementation of AI. PwC found that only 4 percent of executives took AI into their business successfully. It is clear that the lack of knowledge of business leaders affects the implementation of AI. And if AI does not deliver against the metrics used to measure its success, the return on investment will have a knock-on effect. But, these don’t happen because AI is incompetent or insufficient, but because of false expectations.
AI can be highly beneficial to businesses when used effectively. Microsoft found that companies already implementing AI outperform those 5 percent which are not, on factors like productivity, performance, and business outcomes. In addition, companies that subsequently established a strategic approach to AI, such as the development of underlying values, ethics and processes, outperformed those that were not 9 %. It is convincing evidence that successful AI applications can have a significant positive impact on a business.
Businesses need to use this technology effectively to gain the benefits of AI. Business leaders will be able to understand which subcategory is most useful for their business through AI education. A firm with a strong customer focus should focus its efforts on NLP used for chatbots; while companies using big data should focus on machine learning to improve data mining and analytics practices. This AI knowledge will run down the organizations and help staff at other levels to buy into the technology and accept change.
Clearly, while AI is an important opportunity for many businesses, business leaders need to fully understand AI and the specific subset they want to use before it is integrated. Instead of leaving it to CIOs or CTOs, a CEO must be kept informed about AI and the areas of development of new products. Businesses may never meet the full capacity of AI if it is incorrectly implemented and are likely to lose out to competitors who have focused on technology understanding.