{"id":1979,"date":"2019-09-27T04:26:29","date_gmt":"2019-09-27T04:26:29","guid":{"rendered":"http:\/\/kusuaks7\/?p=1584"},"modified":"2024-03-20T12:29:07","modified_gmt":"2024-03-20T12:29:07","slug":"the-state-of-ai-in-the-enterprise","status":"publish","type":"post","link":"https:\/\/www.experfy.com\/blog\/ai-ml\/the-state-of-ai-in-the-enterprise\/","title":{"rendered":"The State of AI in the Enterprise"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1979\" class=\"elementor elementor-1979\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-57f6228f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"57f6228f\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-786ab1b3\" data-id=\"786ab1b3\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-21abe7b6 elementor-widget elementor-widget-text-editor\" data-id=\"21abe7b6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tA few months ago, Babson College professor\u00a0<a href=\"http:\/\/www.tomdavenport.com\/\" rel=\"noopener\">Tom Davenport<\/a>\u00a0gave a talk on the state of AI in the enterprise at the\u00a0<a href=\"http:\/\/ide.mit.edu\/events\/2019-mit-ide-annual-conference\" rel=\"noopener\">annual conference<\/a>\u00a0of MIT\u2019s\u00a0<a href=\"http:\/\/ide.mit.edu\/\" rel=\"noopener\">Initiative on the Digital Economy<\/a>.\u00a0\u00a0His talk was based on two recent US surveys conducted by Deloitte, the first one in\u00a0<a href=\"https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/us\/Documents\/deloitte-analytics\/us-da-2017-deloitte-state-of-cognitive-survey.pdf\" class=\"broken_link\" rel=\"noopener\">2017<\/a>\u00a0followed by a second in\u00a0<a href=\"https:\/\/www2.deloitte.com\/content\/dam\/insights\/us\/articles\/4780_State-of-AI-in-the-enterprise\/DI_State-of-AI-in-the-enterprise-2nd-ed.pdf\" rel=\"noopener\">2018<\/a>.\u00a0\u00a0Davenport was a co-author of both reports.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9295cae elementor-widget elementor-widget-text-editor\" data-id=\"9295cae\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\nThe 2017 survey was focused on the responses of 250 US executives who were leading the applications of AI in their companies.\u00a0\u00a0The larger 2018 survey reached out to 1,100 IT (46%) and line-of-business (54%) executives from US-based companies (64% at the C-level) and 10 different industries.\u00a0 All of these respondents were early AI adopters compared with their counterparts in an average company, &#8211; 90% were directly involved in their company\u2019s AI projects, and 75% said that they had an excellent understanding of AI.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c734ab3 elementor-widget elementor-widget-text-editor\" data-id=\"c734ab3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tDavenport started his talk by summarizing the key findings in the Deloitte surveys:\n<ul>\n \t<li>20-30% of enterprises are<em>\u00a0early adopters<\/em>, having implemented at least one AI prototype or production application;<\/li>\n \t<li>Many projects are in pilots but some are already in production;<\/li>\n \t<li>Relatively simple<em>\u00a0low hanging fruit<\/em>\u00a0projects prevail over more ambitious and complex\u00a0<em>moon shots;<\/em><\/li>\n \t<li>Only 24% cited \u201creducing headcount through automation\u201d as one of their top AI priorities;<\/li>\n \t<li>The great majority of respondents believe that AI leads to moderate or substantial changes in job roles and skills;<\/li>\n \t<li>Implementation, integration, data issues and talent top the list of challenges faced by early adopters;<\/li>\n \t<li>Further AI growth is inevitable.<\/li>\n<\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ffeeeb5 elementor-widget elementor-widget-text-editor\" data-id=\"ffeeeb5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t4780_State-of-AI-in-the-enterprise\/DI_State-of-AI-in-the-enterprise-2nd-ed.pdf&#8221;>2018 survey<\/a>\u00a0found that \u201cEarly adopters are ramping up their AI investments, launching more initiatives, and getting positive returns.\u201d\u00a0\u00a0Compared to executives in average companies, early adopters have been implementing key AI technologies at a growing rate, including machine and deep learning, natural language processing and computer vision.\u00a0\u00a063% of respondents had adopted machine learning, an increase of 5% over the\u00a0<a href=\"https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/us\/Documents\/deloitte-analytics\/us-da-2017-deloitte-state-of-cognitive-survey.pdf\" class=\"broken_link\" rel=\"noopener\">2017 survey<\/a>\u00a0and 50% were using deep learning.\u00a0\u00a062% had adopted natural language processing, compared to 53% in 2017, while 57% were using computer vision.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e1b111b elementor-widget elementor-widget-text-editor\" data-id=\"e1b111b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tEarly adopters have been increasing their investments in sophisticated AI technologies, with 37% of respondents saying that their companies had invested $5 million or more in AI technologies while\u00a082% said that their AI investments are paying off.\u00a0\u00a0Across all industries, the median return on these investments is estimated at 17%.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-345e865 elementor-widget elementor-widget-text-editor\" data-id=\"345e865\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tNot surprisingly, technology companies lead both in AI investments and returns, followed by media and entertainment and telecommunications.\u00a0\u00a0Health care and life sciences are also investing in AI, but, so far, they have less to show for it.\u00a0\u00a0Public sector and education are at the other end of the spectrum, with both low AI investments and low returns.\u00a0\u00a0Surprisingly, the Deloitte survey found that financial services industries are on the lower side of the investments\/returns spectrum.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-aa7a14f elementor-widget elementor-widget-text-editor\" data-id=\"aa7a14f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tAnother major reason for the growing use of AI is that it\u2019s becoming easier for companies to acquire AI capabilities.\u00a0\u00a0Enterprise software vendors are increasingly integrating AI technologies into their ERP, CRM and similar applications, such as\u00a0<a href=\"https:\/\/www.salesforce.com\/products\/einstein\/overview\/\" rel=\"noopener\">Salesforce Einstein<\/a>, and\u00a0<a href=\"https:\/\/www.sap.com\/products\/leonardo.html\" class=\"broken_link\" rel=\"noopener\">SAP Leonardo<\/a>.\u00a0\u00a059% of respondents said that their companies use these methods, &#8211; the most popular and easiest path to AI.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1b83fb6 elementor-widget elementor-widget-text-editor\" data-id=\"1b83fb6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tAnother popular way of acquiring AI capabilities is through cloud-based services, used by 49% of survey respondents.\u00a0\u00a0A number of cloud providers offer a variety of AI-as-a-service offerings, including\u00a0\u00a0<a href=\"https:\/\/www.ibm.com\/watson\/products-services\/?mhq=watson&amp;mhsrc=ibmsearch_a\" rel=\"noopener\">IBM\u2019s Watson<\/a>\u00a0and\u00a0<a href=\"https:\/\/aws.amazon.com\/ai\/\" rel=\"noopener\">AWS AI<\/a>.\u00a0\u00a0Cloud-based deep-learning services can give companies access to advance AI algorithms, pre-trained models, data management tools, and the huge computing power necessary to extract insights from very large data sets.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e91d94a elementor-widget elementor-widget-text-editor\" data-id=\"e91d94a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t44% of respondents cited \u201cenhanced current products\u201d as the top AI benefit to their companies, followed closely by \u201coptimizing internal operations\u201d at 42%, and \u201cmake better decisions\u201d at 35%.\u00a0\u00a0More respondents viewed AI as enhancing innovation-related activities that reducing headcount.\u00a0\u00a0\u201cFree workers to be more creative\u201d was cited by 31% of respondents, \u201ccreate new products\u201d by 27% and \u201cpursue new markets\u201d by 24%, while only 24% cited \u201creduce headcount through automation\u201d as a key benefit.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d51e876 elementor-widget elementor-widget-text-editor\" data-id=\"d51e876\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tIn a 2018\u00a0<em>HBR<\/em>\u00a0<a href=\"https:\/\/hbr.org\/2018\/01\/artificial-intelligence-for-the-real-world\" rel=\"noopener\">article<\/a>, Davenport\u00a0<a href=\"https:\/\/blog.irvingwb.com\/blog\/2018\/02\/a-framework-for-building-ai-capabilities.html\" rel=\"noopener\">offered advice<\/a>\u00a0to companies on how to begin building their AI capabilities.\u00a0\u00a0They should look at AI through the lens of business opportunities, rather than technologies.\u00a0\u00a0As has been the case with the great majority of new technologies, highly ambitious, multi-year moon shot projects are less likely to be successful than low-hanging fruit projects that enhance business processes.\u00a0\u00a0It\u2019s the best way to get on the AI learning curve, and the least expensive and easiest capability to implement, since companies have long been engaged with the automation and enhancement of business processes.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5179f2d elementor-widget elementor-widget-text-editor\" data-id=\"5179f2d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tEarly AI adopters struggle with an array of basic challenges.\u00a0Around 40% of respondents cited implementation difficulties, integrating AI into the company\u2019s roles and functions, and data privacy and related data issues as their top challenges, not surprisingly for a complex technology in its early stages.\u00a0\u00a0Lack of skills was cited by 31%, while 21% said that they need business leaders to help select the best use cases and interpret AI results.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-498d879 elementor-widget elementor-widget-text-editor\" data-id=\"498d879\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\nMost current AI projects are focused on augmenting the capabilities of the workforce.\u00a0\u00a0Automation to cut jobs received the lowest rankings among the list of top AI benefits, the choice of only 24% of respondents.\u00a0\u00a0However, the vast majority of respondents agree that AI is transforming many jobs, leading to moderate or substantial changes in roles and skills, both now (72%) and three years from now (82%).\u00a0\u00a0\u00a078% believe that AI empowers employees to make better decisions, and 72% said that it will increase job satisfaction.\u00a0\u00a0\u201cPerhaps the biggest advantage could be new ways of working that blend the best of what machines do with human experience, judgment, and empathy; 78 percent of executives believe that AI-based augmentation of workers will fuel new ways of working.\u201d\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4d05cca elementor-widget elementor-widget-text-editor\" data-id=\"4d05cca\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tDavenport concluded his presentation with a set of recommendations to help leverage AI for competitive advantage:\n<ul>\n \t<li>Think big &#8211; figure out how AI can transform your business processes, business models and overall strategy;<\/li>\n \t<li>Start small &#8211; start with pilot projects and less ambitious goals;<\/li>\n \t<li>Scale up &#8211; develop a pipeline toward production, and move along it;<\/li>\n \t<li>Skill out &#8211; offer AI training to augment the skills of the workforce and help them transition to new jobs;<\/li>\n \t<li>Put an ethical framework in place; and<\/li>\n \t<li>Appoint a company-wide AI leader.<\/li>\n<\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>A few months ago, Babson College professor\u00a0Tom Davenport\u00a0gave a talk on the state of AI in the enterprise at the\u00a0annual conference\u00a0of MIT\u2019s\u00a0Initiative on the Digital Economy.\u00a0\u00a0His talk was based on two recent US surveys conducted by Deloitte, the first one in\u00a02017\u00a0followed by a second in\u00a02018.\u00a0\u00a0Davenport was a co-author of both reports. The 2017 survey was<\/p>\n","protected":false},"author":612,"featured_media":4082,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[183],"tags":[97],"ppma_author":[3320],"class_list":["post-1979","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai-ml","tag-artificial-intelligence"],"authors":[{"term_id":3320,"user_id":612,"is_guest":0,"slug":"irving-wladawsky-berger","display_name":"Irving Wladawsky-Berger","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&r=g","user_url":"","last_name":"Wladawsky-Berger","first_name":"Irving","job_title":"","description":"Irving Wladawsky-Berger, a Guest Columnist at WSJ CIO Journal, is Research Affiliate at MIT Sloan School of Management, Adjunct Professor at Imperial College, London, and Chairman Advisory Board at r4 Technologies."}],"_links":{"self":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/1979","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/users\/612"}],"replies":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/comments?post=1979"}],"version-history":[{"count":4,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/1979\/revisions"}],"predecessor-version":[{"id":36494,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/1979\/revisions\/36494"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media\/4082"}],"wp:attachment":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media?parent=1979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/categories?post=1979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/tags?post=1979"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/ppma_author?post=1979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}