US-based Boston Consulting Group and MIT Sloan Management Review have revealed that the majority of experts are optimistic about the ability of Artificial intelligence (AI), even though it is not offering a significant bottom-line boost in most businesses sector.
The study entitled ‘Expanding AI’s Impact with Organizational Learning’, found that despite 75 percent of Business leaders believing that AI would lead to value generation for their organizations.
The report further added that only six percent of Middle Eastern companies have seen significant financial benefits due to a lack of a holistic approach involving integration and close interaction between humans and machines.
“Multiple technology foundational steps, AI-driven decision-making, and process improvements have enabled companies to generate value with AI. At the same time, several other companies are yet to see a significant return on their AI investments. Our new study reveals organizations that ultimately achieve the most value from AI are the ones implementing a holistic approach – ensuring increased interactions and mutual learning between humans and machines.”
As per the study, five modes of human-AI interactions have been identified and they are;
- AI decides and implements a decision on its own.
- AI makes a decision that is implemented by a human being.
- AI makes a recommendation to the human, but the decision is under the human’s control.
- AI makes insights from data that help human’s decision-making calculus.
- Humans make decisions that an AI system only evaluates after the fact.
Multiple modes of interaction were likely used by the most successful firms, with 20 percent of regional firms using all five modes and an additional 13 percent using three or four different modes. Those who used all five modes were six times more likely to see financial benefits and amplify their performance with AI, than those who relied on only one kind of interaction. These results are significant, particularly increasing focus on the internal implementation of AI.
Rami Mourtada, partner and associate director of Digital Transformation at BCG said, “Much like their counterparts in other markets around the globe, regional companies are under various competitive pressures to drive AI strategies within their organizations. 94 percent of regional CTOs believe that AI will provide an advantage over their competition as opposed to 87 percent globally, 71 percent are concerned that they may lose that advantage should competitors begin using AI in their operations, and 77 percent of global counterparts share the same apprehension”.
He further stated that “Moreover, market demands are also driving organizations to implement AI, with 60 percent believing that customers will begin to ask for AI-driven offerings and another 63 percent under the impression that partners will ask the same. As such, organizations must drive their AI strategies effectively and efficiently.”
“One major takeaway from this report is that Middle Eastern companies need to calibrate their investments in technology, people, and learning processes. Configuring a business to capitalize on AI capabilities requires substantial investment and companies most committed in this direction are far more likely to reap the rewards. Financial investments in technology and people are important, but it is also essential for companies to identify that investing social capital in learning is equally critical to creating significant value with AI,” concluded Mr. Moutada.
Boston Consulting Group is an American management consulting company, which is one of the world’s three largest strategy consulting firms by revenue. And the MIT Sloan Management Review is a research-based magazine and digital platform for business executives published at the Massachusetts Institute of Technology.