63% Of Executives Say AI Leads To Increased Revenues And 44% Report Reduced Costs
63% of executives whose companies have adopted AI report that it has provided an uptick in revenue in the business areas where it is used, and 44% say AI has reduced costs; revenue increases from adopting AI are reported most often in marketing and sales, and cost decreases most often in manufacturing; about one-third of respondents say they expect AI adoption to lead to a decrease in their workforce in the next three years, compared with one-fifth who expect an increase (McKinsey online survey of 2,360 executives worldwide]
AI is helping Royal Dutch Shell locate new oil and gas sources. One of the company’s 280 AI projects is aimed at helping the company find new sources of oil and gas by cleaning up data from seismic surveys, which are used to create images of rock formations that in turn help scientists locate oil deposits below the ocean floor. The problem, historically, has been that these surveys don’t paint a clear picture of what rock formations look like. Underwater currents and other factors produce noisy data that affects the images. Shell created machine-learning algorithms, based on images the company has cleaned, to filter out that noise. Those surveys used to take human workers several months to interpret. The AI system reduced the time needed to produce clearer images by 80% [WSJ]
The McKinsey global survey found a nearly 25% year-over-year increase in the use of AI in standard business processes, with a sizable jump from the past year in companies using AI across multiple areas of their business; 58% of executives surveyed report that their organizations have embedded at least one AI capability into a process or product in at least one function or business unit, up from 47% in 2018; retail has seen the largest increase in AI use, with 60% of respondents saying their companies have embedded at least one AI capability in one or more functions or business units, a 35-percentage point increase from 2018; 74% of respondents whose companies have adopted or plan to adopt AI say their organizations will increase their AI investment in the next three years; 41% say their organizations comprehensively identify and prioritize their AI risks, citing most often cybersecurity and regulatory compliance (McKinsey online survey of 2,360 executives worldwide]
84% of C-suite executives believe they must leverage AI to achieve their growth objectives, yet 76% report they struggle with how to scale AI; 75% of executives believe that if they don’t scale AI in the next five years, they risk going out of business entirely; companies that are strategically scaling AI report nearly 3X the return from AI investments compared to companies pursuing siloed proof of concepts; there is a positive correlation between strategic scaling and a premium of 32%, on average, for three key financial valuation metrics [Accenture survey of 1,500 C-suite executives from companies with a minimum revenue of $1 billion in 12 countries]
Fewer than 20% of organizations currently leverage AI to streamline and speed up processes; 55% believe AI and machine learning are key to meeting customer experience goals; only 15% agreed their organizations can leverage real-time data and 75% say their organizations plan to increase their use of real-time data in 2020; almost 70% say that AI or machine learning are used on only 1% to 20% of their companies’ tech projects; nearly 80% plan to increase the use of artificial intelligence and machine learning over the next 12 months [Adobe survey of 200 CIOs from U.S.-based companies, with at least 100 employees; Fortune]
10% of organizations worldwide are actively using AI; in China, 14% of companies are using AI successfully [IBM’s Institute for Business Value,CNBC]
The Life of Data, the fuel for AI
53% of IT professionals don’t believe they have a true understanding of the term “data management” [ESG]
The AI market worldwide will reach $202.57 billion by 2026, up from $20.67 billion in 2018 [FinancialNewsMedia.
