While the majority of organizations using artificial intelligence (AI) are still experimenting with the technology, only 12% are using it at a level of AI maturity that gives them a strong competitive advantage, according to new global research from Accenture (NYSE:ACN).
“The art of AI maturity: moving from practice to performance” uncovers strategies for AI success through a holistic framework, which includes a new index to express enterprise AI maturity on a scale of 0 to 100. According to the research, AI maturity AI is the degree to which organizations outperform their peers in a combination of AI-related core capabilities and differentiation. These capabilities include technology – data, AI, cloud – as well as organizational strategy, Responsible AI, Sponsorship of the C suite, talent and culture.
“To remain resilient despite ongoing market disruptions, organizations must leverage the combined power of AI, data, and the cloud to address complex challenges around supply chain, sustainability, customer experience and skills shortages,” said Piyush N. Singh, Head of India Business at Accenture. “AI adoption has matured rapidly during the pandemic, but to create more value with AI and use it to reinvent the business, companies need a clear vision of leadership combined with management. effective change and the reinvention of human capital.”
Prithvijit Roy, Managing Director – Applied Intelligence, Accenture India, said: “Our research shows that as the impact of AI on businesses across all industries rapidly increases, organizations need to champion AI as a strategic priority for the entire organization with a clear strategy. and strong executive sponsorship. To successfully scale the use of AI, they must industrialize AI tools and teams and also nurture a culture of responsible AI design. But most importantly, they must invest In addition to hiring multidisciplinary AI-related skills, it is imperative to create data and AI fluidity across the workforce through training and reskilling of a majority of employees – from product development teams to C-suite executives – to ensure that AI permeates the entire organization.”
The research places the median AI maturity of organizations at a moderate score of 36, revealing that most companies have significant opportunities to drive greater value with AI. The research highlights a small group (12%) of organizations that are already using AI to outpace their competitors. This group is nicknamed AI developers, with a score of 64 on the maturity scale, almost double that of others and correlating with 50% higher revenue growth than their peers.
The analysis further shows that most companies (63%) are AI experimenters, barely scratching the surface of AI’s potential with an AI maturity score of 29. AI innovators (13%), scoring 50, and AI builders (12%), at 44, are somewhat advanced in their level of AI maturity, but still leave the full value of AI untapped.
“We believe that every part of every business should be transformed by technology, data and AI, in some cases leading to total business reinvention,” said Sanjeev Vohra, Global Head of Applied Intelligence at Accenture. “AI Achievers show their peers what’s possible when you unlock the full potential of talent and technology, working in tandem, backed by a clear vision and commitment to change. But even this most mature group has a lot room for growth.And while most industries have AI Achievers, they vary widely in their level of AI maturity and the leaps they will take.
Here are examples of the current and projected state of AI maturity by industry:
- Technology companies already have a high AI maturity score of 54, which will increase moderately to 60 in 2024, but still positions them at the top of AI maturity across all industries.
- In contrast, manufacturers and equipment manufacturers will rise from a modest 39 today to 57 in two years – betting on a significant increase in sales of AI-powered autonomous vehicles.
- In the same way, retail businesses will scale in their AI maturity from 38 today to 54 in 2024. Notably, many retail companies are showing a deeper commitment to AI transformation than other industries. Walgreens Boots, as part of its efforts to create a more data-driven organization that can provide customers with highly personalized digital service, migrated from legacy databases to advanced cloud databases and analytics. The company has also created more than 100 high-value AI products that create detailed customer profiles and help it better optimize inventory and prices.
Regardless of the industry, the impact of AI on business is growing and accelerating. The world’s largest companies that discussed AI in their 2021 earnings calls were 40% more likely to see their stock prices rise, up from 23% in 2018. Additionally, investments in AI are on the rise. In 2021, 19% of companies surveyed used more than 30% of their technology budget for AI projects. By 2024, the percentage of organizations investing more than 30% of their technology budget in AI will increase to 49%.
Subsequently, machine learning models used for research suggest that the share of AI Achievers will rapidly increase from the current 12% to 27% by 2024. the AI will go from 36 today to 50.
“Adopting AI at scale and embedding it deeper into all aspects of business is no longer a choice, but a necessity and opportunity for every industry, organization and leader,” Vohra said. “While the science of AI is revolutionary and inspiring, harnessing it to its fullest is an art that leaders must continually practice. Our report provides practical recommendations on how to advance AI maturity to join the ranks AI Achievers.
The research, titled “The Art of AI Maturity: Advancing from Practice to Performance” is based on financial and non-financial data from 1,176 companies that use AI and survey data from 1,615 executives, conducted from August as of September 2021, across 16 industries (Aerospace & Defense; Automotive; Consumer Goods & Services; Chemicals; Energy; Financial Services; Healthcare; Industrial Equipment; Life Sciences; Natural Resources; Utilities; Retail; Technology; Telecommunications , Media and Entertainment; Travel and Transport; Utilities) and 15 countries (Australia, Brazil, Canada, China, France, Germany, India, Israel, Italy, Japan, Singapore, South Africa, Spain, United Kingdom, United United). The data fed into machine learning models, which determined how companies performed on a set of AI-related capabilities – mostly “core” capabilities, which companies need to compete on AI, and mainly “differentiation” capabilities, which give businesses a competitive edge with AI. The results of the two models were combined into a single index that measures the maturity of AI on a scale of 0 to 100. A detailed description of the methodology and the sample can be found in the appendix of the research report (available in download here).
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