Artificial intelligence has already won the hearts of a number of companies and organizations, but its true opportunities are yet to be discovered.
The truth of the matter is, many leaders are not really sure what they can expect from AI, and they are yet to define the strategies to approach it.
The expectations are high; around 85% of executives firmly believe it will provide their companies with competitive advantage. Still, only fifth has incorporated artificial intelligence into their business models, and we are to conclude that this is due to an overall unawareness of the benefits that come with AI.
The expectations are high
Though only 14% of executives claim to notice the effect AI has on their organizations, even executives who are yet to see these substantial effects claim they expect significant changes in the next 5 years.
Still, these expectations differ depending on the industry and organization in question. When it comes to technology, telecommunications, and media, more than 70% expect AI to have large influence; but those who work in a public sector are less optimistic since there are only about 40% who feel like they are about to experience some changes due to artificial intelligence.
Nevertheless, the AI influence is great and cannot be so easily overlooked, and below we are to present you with positive changes particular industries and business sectors have already gone through.
If any branch has had the opportunity to experience the potential of the AI, it is information technology. Namely, IT services have recorded a significant growth in the last two decades; a number of once mechanical jobs have now moved to low-labor-cost countries, such as IT and system administration, verification, business operations, etc. As AI develops, we are to see more and more similar roles being automated. For example, experts from Picnet IT consulting and project management services note that AI has greatly influenced their operations; in their case, automatization has not only simplified and hastened certain processes, it has also contributed to the higher quality of the final result.
As a result, many are those who fear of losing their current role in a society but do not panic just yet – while AI is automating one set of activities, it is at the same time creating a multitude of new ones.
Customer service needs to be one of the top business priorities, as more than 90% have reported that they would never conduct a business with a company they have had a negative experience with. Thanks to AI, this aspect has been taken to a whole new level. Ping An Insurance Co. Of China Ltd. for example - implemented artificial intelligence, they can now provide their clients with an online loan in only a few minutes thanks to the AI!
Manufacturing and operations
AI is to change the face of manufacturing; over time, the system moved from providing a pure description of a particular activity to predicting and prescription. For instance, drilling – now we have the tools that take all information coming from the drilling systems and create advice for workers and engineers, regarding potential risks and hazards.
Awareness of potential risks
While AI adoption comes with many benefits, we are still advised to be cautious around it; since the middle of the last century when the AI first appeared, there have been ups and downs. At this point, it seems a peak period is ahead of us, but there are some executives who feel like it comes with certain risks, as well as the potential for increased competition. In other words, they are aware of the fact that their companies are not going to be the sole beneficiaries; consequently, they are looking at a much fiercer fight with their competitors.
What the future has in store
We are likely to see a drastic change in the Western middle-class workplace in years to come. Around 70% of employees said they are not afraid of getting automated, and they are right to feel that way. Contrary to popular belief, AI is not to reduce the number of open positions. It will, however, take over certain roles known to be 'boring' and 'uncreative', and those who finally break free from the chains of those unpleasant work responsibilities will not be unemployed – they will simply need to learn new skills, that is, augment the ones they already possess.
In the end, it is essential to highlight the potential challenges management is about to face. Organizations who adopt AI will have to appoint leaders who are open to change, who think long-term and are effective collaborators. In the long run, they will have to enrich their knowledge of AI, develop a broader view of the competitive landscape and deepen their perspective on ways to organize their business models around artificial intelligence.
Do you feel like you are up for the challenge?