There’ve been years of hype about the invincible power of Artificial Intelligence (AI), but a substantial gap between what AI promises and its verity for business transformation still exists. Tech-companies have pitched AI’s capabilities for a long-time however, for the majority of the organizations, the benefits of AI continue to be volatile. Artificial intelligence projects are indeed precedence for most of the companies though, there are several possible drawbacks for the unwary.
It’s not easy to gauge the proportion of businesses that leverage artificial intelligence today. Recent reports demonstrate that adoption rates fall somewhere between 20% and 30% – with adoption generally interpreted as ‘implementing AI in some form’. KPMG’s survey among 30 of the global 500 companies showed that while 30% of respondents used AI for a particular range of purposes, only 17% of the companies implemented the technology at a large scale within the enterprise.
All of these reports indicate that businesses’ interest in AI is rapidly growing. As reported by Gartner, the number of companies deploying AI-related technologies in the past four years has surged by 270%. Johan Aurik, partner at the global strategic consulting firm “Kearney” stated that when talking to executives, it’s evident that they all go to all AI conferences and are well-aware of what the technology can do.
Unleashing AI Promise
The promise of Artificial Intelligence is certainly tantalizing for business transformation. The high-growth that the technology can achieve is widely endorsed by specialists – to the point that it becomes hard for any executive to be still unaware of the hype. A large number of businesses are well-aware of AI’s massive potential, as they plan to speed-up adoption. One application of AI that is properly documented is the use of machine learning for both marketing and sales purposes, which analysts estimate could generate around $2.6 trillion in value globally.
Why Kellogg Leverages AI?
By implementing AI, businesses can get a clearer picture of customer behavior to design customized offers. The American food manufacturer, Kellogg Company is pioneering the use of AI to get more insights into behavioral science. Along with Qualcomm, Kellogg has introduced an eye-tracking technology entrenched in virtual reality (VR) headset, which keeps an eye on customers’ behavior whenever they shop. When users browse a simulated store, the device collects data about the product that grabs their attention or where they gaze for a longer time – data is then fed to machine-learning algorithms to fully comprehend what causes the buying decision.
Also, the director of behavioral science at Kellogg, Stephen Donajgrodzki, recently stated at a conference in London that AI has been proven beneficial for his team to clearly understand why people act; and when the behavioral mechanisms of customers become evident, it’s likely to impact their buying decision.
Seemingly, it’s not just about handling and managing human actions. When it comes to data-heavy industries like manufacturing, the ability of AI to process and analyze large volumes of information also has the potential of optimal effectiveness through the supply chain. Moreover, artificial intelligence is expected to generate the most growth in marketing and sales, and in supply-chain management & manufacturing in the upcoming time.
Biggest Barrier Businesses Face in Adopting AI
Fear is the key factor that businesses are reluctant to embrace AI – with the narrative that ‘robots can replace our jobs’ putting off CEOs and their workforces. However, a recent report found that almost 87% of organizations are looking forward to increasing their employee numbers after the adoption of automation.
AI covers a variety of technologies – from the data-crunching of machine learning right up to cutting-edge work on artificial general. When you interject a bunch of tech companies and start-ups who are intensely trying to make an impact by rebadging their exertions as ‘AI’ to entice zeitgeist-hunting customers, the actual state of AI usage becomes even more complex.
AI can be immensely valuable for many industries, provided that it’s deployed with a particular targeted strategy. In other words, think bigger!
So, to AI or not to AI?
It doesn’t look like businesses are going to have much of a choice when it comes to adopting AI. It’s in no-one’s interest to run short on the revolution that algorithms will bring. If you don’t embrace AI, you’ll be out of business. Though; it’s expected to take a few decades before the technology is fully deployed. But, at the enterprise level, it seems that another ‘Artificial Intelligence winter’ is not going to happen.