AI Strategy: The great progress in the development of AI these years has ensured that an increasing number of industries are starting or already using AI. More and more companies are developing their own AI strategy. Of course they expect great advantages from this new technology. However, some entrepreneurs are still sceptical about artificial intelligence. They are still waiting to integrate or develop AI applications into their own company. The scepticism is understandable due to a certain risk. However, it is more likely that the „wait-and-see“ attitude will take its revenge in the upcoming years.
From Silicon Valley to the world
The big internet companies like Ebay, Amazon, Google or Facebook have paved the way for the global triumph of AI in the last decade after a phase of stagnation for AI development in the 80s and 90s. Such innovative founders as Sergei Brin and Larry Page, Mark Zuckerberg or Jeff Bezos were the first ones to use AI ingeniously. The results are – large corporations with astonishing monopolistic market power. Which are making astronomical profits quarter after quarter. Now the time has come when AI has become mature for many other industries due to these pioneers.
The trend towards AI can be seen as the fact that a lot of companies have used Artificial Intelligence successfully for a long time in many industries. The figures of a survey published by Forbes prove this. 84% of all entrepreneurs surveyed see AI as a tool for gaining a decisive competitive advantage. 83% have therefore made AI a strategic priority.
AI Strategy skepticism
While the AI market is booming – we expect global AI sales to rise from $643.7 million in 2016 to over $38.8 billion by 2025, some entrepreneurs still view AI with skepticism. It is not uncommon to wait and see before using the technology in one’s own company.
The examples of the large corporations clearly show how fatal is waiting might be. It can have an effect on the competition. The AI’s from Google, Facebook and Amazon, for example, are now so advanced that it is almost impossible for potential competitors to grow on the same level of AI research. And with each month, with each day the lead increases further.
The advantages that an AI strategy can bring to almost all companies are striking. AI promises new approaches in the optimization process, in increasing efficiency, in customer service. AI can help to make employees more productive. It means a general innovation boost for the company, which can result in the development of new products and entire business areas. It is astonishing that such potentials are being dispensed with in an increasingly fast-moving age. In a time of generally increasing competition, in which not only people have to become more and more flexible, but also companies. Especially in industries that haven‘t changed much in the last decades.
The lack of knowledge
The reasons for companies not using AI strategy we can only probably explain by a lack of knowledge and understanding of the possibilities of AI. In many industries, for example, the immediate benefit of AI is not immediately apparent. Furthermore, the costs can be a deterrent. Because AI developers are in high demand and therefore expensive employees. And AI outsourcing also incurs costs that not every entrepreneur is prepared to bear without further ado. Especially if the return of investment is not immediately foreseeable. In addition, such investments often only bear fruit after a long time.
However, it turned out that companies with AI strategy often benefited relatively soon. According to a recent Deloitte AI study, about 40% of all TMT companies (technology, media and telecommunications industries) say that they already benefit substantially from the usage of AI. In view of the fact that we are still at the beginning of AI development, these are nevertheless convincing values that should at least inspire any entrepreneur, who has so far viewed the topic of artificial intelligence with skepticism, to rethink.
Our previous blog post – AI Introduction – Obstacles and challenges of the process