AI a means to strategic growth, execs say

Folake Dosu
November 2, 2018
Updated: April 29, 2019
Folake Dosu
November 2, 2018
Updated: April 29, 2019

AI-growth-cost-cutting

Automatons are part of our daily lives, doing the tasks normally completed by living and breathing personnel. Bloomberg reports that Haidilao, a 5000 restaurant chain in Asia recently announced its intention to replace its chefs and waiters with robots. Commenting on this development, Forbes suggests AI is here to actually help business grow and not simply cut the cost of human labor.

With the deployment of artificial intelligence on the rise this decade in particular, companies can now be qualified as leading users and beginners. Analysis in a Forbes report shows that the two groups view the benefits of AI differently, with one associating its adoption as a means of increasing revenue and the other as a cost-cutting measure. 

The research shows that 72% of leaders in AI adoption employ it strategically, predicting that it will drive a revenue increases in a five year span, with only 28% predicting cost savings as the main benefit. On the other side, 41% of companies just beginning to use AI see it as a cost-cutting measure.

MIT Sloan Management and BCG recently performed a study with results that showed dramatically divergent figures on what companies perceive is the primary value to adopting AI in business operations. The research shows that 72% of leaders in AI adoption employ it strategically, predicting that it will drive a revenue increase in a five year span, with only 28% predicting cost savings as the main benefit. On the other side, 41% of companies just beginning to use AI see it as a cost-cutting measure. 

AI is often envisioned as a contributor to future shock, depicted in various media as robots surrounded by lab coat-clad personnel or machines with human faces and voices. But Forbes says contrary to popular belief, the local application of artificial intelligence is not as complex as its science; companies are finding AI remarkably easy to deploy and results can be seen rapidly. However, these results do not impact enterprises in ways that match. 

According to Forbes, 85% of companies leading in AI usage believe maximum efficacy means employing a strategy that scales artificial intelligence usage, merging it with an enterprise’s system-wide requirements and resources. “AI at scale is the next step of digital transformation.”

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