study<\/a> published by Return on AI Institute, the research arm of Scaled Agile. At the same time, the study does show a majority of executives are perceiving value in their AI efforts. Across the different types of AI, 45% of executives say they are achieving a \u201cgreat deal of value,\u201d and another 45% are seeing a \u201cmoderate amount\u201d of value. Only nine percent admitted that their organization is achieving a \u201csmall amount\u201d of value, and none said they were achieving no value. <\/p>\nIn terms of hard quantifiable numbers, the great majority of organizations are achieving either a slight positive return on investment (48%) or a substantial positive (39%) return on their AI investments relative to the costs they have incurred. No respondents reported that their organization roughly breaks even on its investments, and only 2% have seen overall negative returns.<\/p>\n
Across the main categories of AI, generative AI is still in relatively imature stages, the report\u2019s authors state. Only 9% of organizations currently identify generative AI as their most valuable AI type, compared with 50% for analytical AI and 40% for rule-based automation, which have decades of operational maturity.<\/p>\n
Data readiness is the greatest obstacle to AI success, with a majority of executives, 55%, report data issues, the study also shows. Close to half, 47%, cite a lack of a cohesive framework, and 47% also cite technology complexity. <\/p>\n
Another key factor is preparing and training the workforce and leaders. Organizations that invest in both upskilling and leadership AI fluency see a 23-percentage-point advantage in value realization.<\/p>\n
Not covered in the data, but just as impactful, is short-term thinking, along with a rush to put AI to work before considering longer-term implications. \u201cA focus on short-term value is why many enterprises never make the technology transformation that unlocks long-term value,\u201d said Prem Naturajan, executive VP and head of enterprise AI at Capital One, quoted in the report. \u201cWe carefully measure the benefits of our AI use cases, and whatever AI we introduce, we put our backs into it\u2014we invest in training, transforming business processes, and so forth. It\u2019s never ‘here\u2019s a tool, go use it.\u2019”<\/p>\n
The report\u2019s recommendations for better leveraging AI include the following<\/p>\n
Think before you cut. <\/strong>\u201cBe careful about anticipating benefits from AI with headcount reductions or hiring freezes before AI capabilities are actually in production.\u201d<\/p>\nBe patient with AI.<\/strong> “It takes several years to achieve high levels of value.”<\/p>\nEmploy the full spectrum of AI types.<\/strong> “Analytical AI has the longest track record of delivering measurable value and deserves continued emphasis. Generative AI has real utility, with greatest returns from targeted deployment rather than just broad adoption, and agentic AI is an early signal worth exploring.”<\/p>\nBroaden your range of AI applications.<\/strong> \u201cAssess not only ways to improve internal processes and productivity from AI, but also how AI can be incorporated into customer-focused products and services.\u201d<\/p>\nInvest in <\/strong>both<\/strong><\/em> employee training and governance. <\/strong>“Training without
governance creates chaos; governance without training creates bureaucracy.”<\/p>\n<\/div>\n
\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Is AI finally delivering value? Who cares \u2013 just start the cutting! Is this a good strategy? Jensen Huang, CEO of Nvidia, doesn\u2019t think so. \u201cIf your CEO is using AI to cut headcount, it means one thing: They have no imagination,\u201d he said in a recent interview with CNBC. “They have no vision for<\/p>\n","protected":false},"author":1,"featured_media":9800,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[],"class_list":{"0":"post-9799","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-brand-spotlights"},"_links":{"self":[{"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=\/wp\/v2\/posts\/9799","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9799"}],"version-history":[{"count":0,"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=\/wp\/v2\/posts\/9799\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=\/wp\/v2\/media\/9800"}],"wp:attachment":[{"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9799"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9799"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wildgreenquest.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9799"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}