Many AI companies are touting artificial intelligence as a next-level revolutionary tool that will propel businesses to new heights of productivity coupled with lower costs. However, a recent survey conducted by a professional services network PricewaterhouseCoopers (PwC) found that, of 4,454 business executives surveyed, only 12% saw any benefits from increased revenue coupled with decreased expenses.
A full 13% of respondents said they saw a decrease in costs with no change in revenue, while another 8% enjoyed an increase in revenue without seeing a change in expenses, meaning at least a third of the increase in revenue. business AI users have derived some value from their deployment of the technology.
There also remains 12% who either saw lower costs associated with lower income, or higher income matched with higher expenses, thus negating the benefits brought by AI.
However, PwC noted that this inconsistency in results could be because companies are not yet ready to use this technology. Mohamed Kande, its global president, said: “Companies that invest in data readiness, clear AI roadmaps, responsible guardrails and a culture that enables adoption achieve better results. »
The report suggests that companies should apply AI more broadly across “their products, services, and experiences” to achieve “both incremental revenue and cost reduction from AI,” as stated by the 12% who gained the most benefit from their AI tools.
Additionally, PwC says that only 14% of employees use generative AI in their workflow on a daily basis, meaning there’s a good chance they don’t understand or even be aware of the risks and benefits of using AI services. With such a low proportion of workers using these tools, the company’s growth potential appears high.
Due to this apparent need for deeper deployment to achieve the best results, it appears that many companies will continue to increase their investments in AI. And it’s important to provide real value to customers to drive that spending. JP Morgan recently projected that the AI industry is expected to generate $650 billion in revenue just to get a 10% return on the company’s current investment in AI, which amounts to $34.72 for each current iPhone user or $180 for each Netflix subscriber.
Regardless, this report reveals the potentially precarious state AI services currently find themselves in. Industry leaders may want to go all-in on technology, but the wide range of results from this survey suggest that bridging the gap between hype and business results is a problem that remains to be solved.
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