The Top Five Trends In AI: How To Prepare For AI Success
The strategic importance of AI is growing at an accelerating pace. Many companies are reaping the rewards of AI now and will increase their investments as a result.
Every board member and every senior executive must understand the key trends in AI that will impact their businesses.
The Top 5 Trends in AI are as follows:
According to ResearchAndMarkets.com, the global artificial intelligence market is expected to grow from $40 billion in 2020 to $51 billion in 2021 at a compound annual growth rate (CAGR) of 28%. The market is expected to reach $171 billion in 2025 at a CAGR of 35%.
Companies that are AI leaders are building an AI flywheel that will enable them to strengthen the lead they already have over their competitors. The flywheel effect comes primarily from AI systems that perform well and then produce more data, helping the system continually improve its performance. Eventually, a competitor will never be able to catch up. (See The AI Threat: Winner-Takes-All)
Another flywheel effect comes from the ability to attract AI talent by building an organization that can enable growth opportunities in AI for that talent.
The companies that have fully embraced AI are focused primarily on:
(See McKinsey: Winning Companies Are Increasing Their Investment In AI During Covid-19. What Do They Know That You Don’t?)
COVID-19 prompted many companies to accelerate their investments in AI. According to a PWC survey, AI is used in strategic decisions around workforce planning, supply chain resilience, scenario planning, and demand projections.
Most companies engage in an annual scenario/strategic planning process. AI can make the strategic planning process an ongoing one. By creating AI models, the strategic plan can be continually updated based on changes in supply, demand, operations, competitive moves, and more.
AI can help sense new threats and opportunities and help a company move away from historical reporting to insightful forecasting.
Companies want to address AI risks but are slow to take action. The top issues include improving privacy, explainability, bias reduction, and improving defenses against cyber threats.
AI lives on data, and data privacy and consumer protection are paramount. (See Consumer Protection and AI—7 Expert Tips To Stay Out Of Trouble)
AI is sometimes a black box. In some cases, you need to know how and why AI makes certain decisions. In some cases, it’s not that important. However, you need to know when it’s essential and when it’s not.
AI can have many different types of bias risks.
