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AI value remains elusive despite soaring investment
The world is investing heavily in Artificial Intelligence (AI), and for good reason. Its potential to transform industries, streamline operations, and optimize customer experiences is well understood. Investment in AI has been soaring over the past few years in the hope of reaping its full benefits. However, despite this demand for AI technology, its value creation remains elusive.
This apparent paradox was captured in a report from Red Hat. According to the report, a staggering 89 percent of enterprises have not yet realized any customer value from their AI deployments. In other words, they may have the technology, but they haven't been able to translate it into tangible business results. Despite this, there's a strong expectation that AI investment will surge by a massive 32% by 2026.
So, what could be going wrong? The common issues include poor data quality, lack of alignment between AI projects and business strategy, shortage of skilled personnel to manage and maintain AI systems, among others.
But there are also other factors contributing to the value gap. According to experts, multiple implementations without a clear strategy result in siloed efforts which fail to take advantage of the power that AI brings. Furthermore, companies often fail to change their organizational structures, cultures, processes to align with AI, thus causing it to be underutilized.
This gap between expectation and reality underscores the critical role that AI management plays. AI, as a capability, does not automatically generate value. It is the strategic approach towards its implementation and the ability to align it with the specific, potential areas of value that can lead to its transformative results.
In conclusion, there is an evident need to focus more on the strategic aspects of AI, rather than just priding ourselves in deploying the technology effectively. The value of AI lies not just in the ability to process and analyze data
Source: AI News, Link
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Posted by ghostaidev Team