Professor Sanjit Roy.
There is a significant discrepancy between the Utopian future promised from the introduction of Artificial Intelligence (AI) and the result being realised globally.
In his presentation as part of the VC Lecture series, Professor of Marketing and Service Science, Sanjit Roy, from the School of Business and Law, noted that the world-wide AI market has reached a value of around $450-billion. Research has indicated that around 45% of overall economic gains by 2030 is expected to come from AI-driven product innovations, and more than 60% of businesses expect AI to boost their productivity, with multiple companies imbedding AI into their operations.
However, research has also found that only 54% of AI projects made it from pilot to organisation scale use, with only one-third of 90% of firms which have implemented AI have realised revenue benefits, while only 10% to 30% of firms have seen any significant financial gains from AI investment.
There is a significant discrepancy between the promises of AI, and what is being realised on the ground. And naturally, the question is why.
The School of Business and Law is currently conducting a study to investigate organisational AI readiness (AIR), and the influence on stakeholder engagement, innovation capability, and the overall performance of an organisation.
"AIR is the state of an organisation in terms of the willingness and ability of its stakeholders, and the suitability of its environment, processes, data and resources for adopting and operating AI.
"Understanding AIR would decrease the risk of AI investment failure, offers a pre-assessments of the element's of a firm's AIR and specifies which elements of AIR need to be improved," Professor Roy told attendees at the VC Lecture.
The research to date has identified eight dimensions to AIR, including environmental readiness, technical readiness, informational readiness, infrastructural readiness, data readiness, participant readiness, customer readiness, and process readiness.
Professor Roy noted that by working through the eight dimensions to AIR, companies could develop adoptions strategies for AI which could de-risk the adoption of the technology and limit failure rates.
"AIR can be used as a tool to assess a firm's preparedness for AI implementation, as a diagnostic tool to identify areas for improvement in technological infrastructure, data management, and customer orientation.
"Investing in AIR dimensions also enhances marketing agility, responsiveness and stakeholder engagement," Professor Roy said.
Business should be made aware that it would be useful to look at AI not only through the lens of technology, but rather as a business capability.
Read more about Professor Sanjit Roy's work in AI.
