AI technology essential to business, transformative to companies, says report
Artificial intelligence (AI) seems to be in the news every day. According to IT Pro Portal, a new study, “Getting Smarter by the Day: How AI is Elevating the Performance of Global Companies” from a global consulting group says that’s because AI technology is becoming entrenched into businesses worldwide.
In the study, Tata Consultancy Services said close to 85 percent of companies around the world view AI as an essential part of being competitive in the marketplace. In addition, 50 percent of companies surveyed view AI technology as having a transformative effect on business.
“As companies begin to gain a better understanding of AI’s application for business, they will realize the significant impact of this transformative force,” said TCS CTO K. Ananth Krishnan. “This is reflected in our Global Trend Study, which shows that forward-thinking companies are beginning to make major AI investments.”
The study showed that North America leads the AI technology investment pack, at least according to the 2015 results. The region spends an average of $80 million per company on AI initiatives, followed closely by Europe at $73 million per company and the Asia-Pacific region at $55 million per company.
A significant portion of these investments go to IT departments. Sixty-seven percent of IT departments are using AI to detect security breaches and automate other core functions. It’s clear that AI adoption is spearheaded by IT.
According to the consultancy, AI investment will continue to rise in the aggregate. Tata expects that the companies investing in AI that see the greatest payoff will hire three times as many people in the AI field than are currently employed, all by 2020.
It’s clear that AI is here to stay. “Given the increasing digital disruption across every industry and the public sector, AI should become a key and integrated component of an organization’s strategy,” Krishnan said.