The global business value of artificial intelligence (AI) is set to reach a total of $1.2 trillion sometime in 2018, which is a whopping 70% increase from the year prior. What's more, that figure is believed to reach $3.9 trillion by 2022.
"AI promises to be the most disruptive class of technologies during the next ten years due to advances in computational power, volume, velocity, and variety of data, as well as advances in deep neural networks (DNNs)," said John-David Lovelock, research vice president at Gartner.
"One of the biggest aggregate sources for AI-enhanced products and services acquired by enterprises between 2017 and 2022 will be niche solutions that address one need very well. Business executives will drive investment in these products, sourced from thousands of narrowly focused, specialist suppliers with specific AI-enhanced applications."
There are three main niche sources of AI business value that were showing the most promise.
Customer experience is seeing the most widespread adoption of AI technology, to unlock the full potential and enable value creation. New revenue creation by increasing sales of existing products or services, or by designing new product opportunities. And finally, cost reduction by streamlining operations in the production and delivery of those products and services.
In other words, AI has tremendous potential, but many CIOs are finding it hard to identify and realize its true business value. CEOs, on the other hand, have high expectations for AI and its strategic importance in achieving their business objectives. It puts extra pressure on IT leaders to dispel any myths circulating out there about AI, and target only specific outcomes that will stand the most to gain from the technology.
Short to mid-term gains originate from leveraging AI capabilities. These will be introduced across platforms, enterprise applications, and various niche solutions that tackle only one specific need very well.
The more encompassing, long-term effects of AI will be in the form of a general-purpose technology. It will require a new set of skills in every part of the value delivery system such as identifying individual use cases, developing business cases, selecting suppliers, and deploying new solutions.
What You Need to Know
You can maximize your business value by pairing up your business priorities with short to mid-term opportunities. The best examples here are those where AI can enhance employee activity, decision-making, and interactions, among other innovation opportunities.
By collaborating with stakeholders in regards to strategic initiatives, you will be able to identify the most promising AI use cases. While focusing on long-term value, use short and long-term classifications to manage AI expectations. Last but not least, interrogate retailer AI plans and capabilities, especially in those areas where their promised proven cases are said to align with your long-term plays.
The AI business value is set to rise steeply over the next several years. Customer experience, new revenue creation, and cost reduction possibilities will be among the primary sources of value growth over this period. If you want to keep yourself up-to-date on these issues and how artificial intelligence will evolve, contact us directly.