Nav: Home

Too many businesses failing to properly embrace AI into processes, not reaping benefits

June 11, 2019

Businesses actively embracing artificial intelligence and striving to bring technological advancements into their operations are reaping dividends not seen by companies who fail to properly adapt and adopt.

While most business and technology leaders are optimistic about the value-creating potential of AI in their enterprise - Enterprise Cognitive Computing (ECC) - the actual rate of adoption is low, and benefits have proved elusive for a majority of organisations.

A study involving Lancaster University Management School's Centre for Technological Futures and MIT Sloan School's Center for Information Systems Research, published in MIT Sloan Management Review, examined adoption of ECC in 150 organisations from various industries across Europe, North America, Asia and Australia, to understand why.

Companies who are able to generate value from ECC do so having built a number of organisational capabilities. They develop skills for data science and algorithmic expertise, shape their business and the roles of staff to accommodate and integrate ECC initiatives, and account for the need to include human judgement and digital inquisitiveness in order to see benefits. Such businesses have strong domain expertise and a good operating IT infrastructure.

They apply these capabilities to a number of practices across the organisation, including co-creation involving people from across the business through the lifecycle of ECC applications, and developing use cases around pressing and meaningful business problems. They have strategies for managing and training AI algorithms within the ECC applications, and - importantly - they both create a positive buzz about ECC and at the same time have realistic and clear-eyed expectations of the benefits they can expect.

Professor Monideepa Tarafdar, Professor of Information Systems and Co-Director of the Centre for Technological Futures at Lancaster University, who co-authored the study, said: "Bringing AI successfully into a business has many positive effects. It can free employees to perform tasks that require adaptability and creativity found in human input, enhance operations, and augment employees' skills.

"But one of our studies showed half of companies have no ECC in place, and only half of those who have believe it to have produced measurable value. This suggests that generating value from such AI is not easy if organizations do not develop the needed capabilities and practices.

"Companies that are serious about AI applications spend the money to hire the right staff and develop the business practices that ensure ECC can improve their business operations, rather than spending money and harnessing massive amounts of data with no obvious benefits."

She added: "Having the proper capabilities in place enables employees to execute the new practices, and the practices in turn strengthen the capabilities of the ECC programmes. Such a virtuous cycle can lead to dramatic improvements in operational and financial performance, and customer satisfaction."
-end-


Lancaster University

Related Business Articles:

How NASA is becoming more business friendly
A new case study demonstrates the steps being taken by the US National Aeronautics and Space Agency (NASA) to make it easier for small businesses and entrepreneurs to understand its needs and do business with it.
Finding the 'Goldilocks' level of enthusiasm for business pitches
Georgia Institute of Technology researchers found how long an entrepreneur displays the highest level of excitement during a pitch also plays a major role in predicting success in receiving funding.
Bosses who put their followers first can boost their business
Companies would do well to tailor training and recruitment measures to encourage managers who have empathy, integrity and are trustworthy -- because they can improve productivity, according to new research from the University of Exeter Business School.
Bacteria rely on classic business model
The pneumonia causing pathogen Pseudomonas aeruginosa has developed a twin-track strategy to colonize its host.
Even small gifts boost business
If a sales agent brings their customer a small gift, the customer is much more likely to make a purchase, a study by the university of Zurich has shown.
More Business News and Business Current Events

Best Science Podcasts 2019

We have hand picked the best science podcasts for 2019. Sit back and enjoy new science podcasts updated daily from your favorite science news services and scientists.
Now Playing: TED Radio Hour

Erasing The Stigma
Many of us either cope with mental illness or know someone who does. But we still have a hard time talking about it. This hour, TED speakers explore ways to push past — and even erase — the stigma. Guests include musician and comedian Jordan Raskopoulos, neuroscientist and psychiatrist Thomas Insel, psychiatrist Dixon Chibanda, anxiety and depression researcher Olivia Remes, and entrepreneur Sangu Delle.
Now Playing: Science for the People

#537 Science Journalism, Hold the Hype
Everyone's seen a piece of science getting over-exaggerated in the media. Most people would be quick to blame journalists and big media for getting in wrong. In many cases, you'd be right. But there's other sources of hype in science journalism. and one of them can be found in the humble, and little-known press release. We're talking with Chris Chambers about doing science about science journalism, and where the hype creeps in. Related links: The association between exaggeration in health related science news and academic press releases: retrospective observational study Claims of causality in health news: a randomised trial This...