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Study Reveals AI to Influence New Business Growth by 2023
31st Oct 2018
Posted by Admin
AI is growing with significance and fast finding place in almost everything technologically powered and much needed. There are several fascinating insights given in the report published by Artificial Intelligence in Business Gets Real; Pioneering Companies Aim for AI at Scale by MIT Sloan Management Review in collaboration with BCG Henderson Institute.
Highlights:
- The early-adopter makers to better adapt BI, analytics, real-time and mobility supervision to allow fast growth in revenue and emerge faster than the peers.
- Today, 18% of the AI adopters bestow more than 70% of effort to develop new methods to grow revenue and sales.
- By 2023, 91% of the interviewed enterprises expect AI would preferably provide new growth in business.
The above study is survey based on about 3,076 managers, analysts and business executives from various global organizations.
Keynotes from the study:
- The study recognized 4 adopter groups depending on their adoption of Artificial Intelligence and knowledge that ranges from Pioneers, Experimenters, Investigators and Passives and of various goals. The report recognized 4 different organizational groups depending on the level of their adoption of AI and maturity. Among the surveyed, 18% are early adopters (pioneers), who understands AI and also adopted the same. 33% is the Investigators that understands AI but have deployed only in a pilot stage. 16% is the Experimenters; they adopt AI without understanding it properly. Also, 34% are the Passives with no understanding or adoption of Artificial Intelligence. In the coming 5 years, everybody expects AI to catalyze the processes that redefine business models.
- 91% of the enterprises interviewed expect AI to provide new growth in business by the year 2023. The noteworthy thing is that all 4 adopter categories expect, AI to confer to new growth in business in five years, i.e. by 2023. The AI integrated product development with IoT sensors gives manufacturers enough streaming of real-time data which can be converted into subscriptions and earn revenue and not just a business for the transaction.
- Early adopters can enable greater scaling, responsiveness, and speed of data that is centralized. Early AI adopters of China has benefited from their government's support for AI programs and are world leaders in an optimization of centralized data banks. BCG and MIT found 78% of the early adopters of China maintains corporate data within a centralized-data bank in comparison with just 37% and 43% of the pioneers from European and the U.S respectively. The pioneers of China focus on making use of AI to reduce costs and put a lesser emphasis on revenue generation.
- The early adopters got success with AI to get new revenue. 72% of the early adopters would make it a priority to prioritize the use cases for whom revenue is essential in comparison to only 48% of the passives. The last three years saw 81% of the pioneer's prioritized increase in revenue over the reduction of cost. The study mentions OPTEL, a technology-based Canadian company and in a mission to develop a sustainable world with smart supply chains. There are pioneers in the manufacturing industry making use of AI for optimizing product scheduling, logistics, service, distribution, and has products to give real and timely updates of the status of when maintenance is required.
So here we learn about the significance of AI and its expected contribution towards business growth in the near future.
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