Why Corporate Adoption of AI Is Expected To Surge In Next Two Years

FOMO (fear of missing out).

Reports from early adopters indicate dramatic gains. And just as with quality, knowledge, innovation and mobile, no executive worth his options wants to be accused of 'not getting it.' JL


The Wall Street Journal reports:

25% of businesses have implemented AI or machine learning, either as pilot projects or as long-term strategies. Within two years, 72% will have implemented or plan to implement the technologies in core functions such as marketing, sales, pricing, logistics, compliance and fraud detection. Global AI spending will double to $79.2 billion by 2022. The reason for the AI boost now is the convergence of cloud computing, big data and high-powered analytics to build AI applications.The expected surge is also being driven by the reported successes of AI in optimizing business operations, and by the anxiety of being left behind.
Adoption of artificial intelligence globally is about to experience a big increase in the next two years as the technology begins to prove itself in core business operations, predicts a new report from consulting firm Deloitte LLP.
The report says 25% of businesses surveyed have implemented cognitive technologies such as AI or machine learning, either as pilot projects or as long-term strategies, to remain competitive. Within two years, Deloitte says, 72% of businesses will either have implemented or will be planning to implement the technologies to gain business insights in core functions such as marketing, sales, pricing, logistics, compliance and fraud detection.

The projections are based on responses from executives and senior business leaders in every major industry. Of the 1,219 respondents, more than 300 are using AI now and nearly 900 in total will be using or planning to use AI soon, for a total expected use of 72% over the next two years, said Omar Aguilar, global strategic cost transformation leader at Deloitte and co-author of the report, “Save-to-transform as a catalyst for embracing digital disruption.”
“With 1,200 respondents, you can imagine, this is statistically significant,” Mr. Aguilar said. “In effect this is a de facto statistic for the market.”
The Deloitte report is in line with a survey released last month by International Data Corp. projecting that global AI spending will more than double to $79.2 billion by 2022. The reason for the AI boost now is the convergence of three forces: cloud computing, big data and high-powered analytics to build AI applications.The expected surge in adoption is also being driven by the reported successes of AI in optimizing business operations, and by the anxiety of being left behind if firms ignore AI, Mr. Aguilar said.
The survey shows a stunning change in attitudes since 2017, when only 6% of executives listed digital disruption as a top external risk factor to their business. In the new survey, 61% said it’s a top external risk factor.
The industries with the most aggressive adoption will be life sciences and health care, consumer and industrial products, and technology, telecom and media, Mr. Aguilar said. In all three sectors the adoption rate is expected to exceed 50%, he said.
Health-care organizations are embracing AI, said Dr. John Halamka, the International Healthcare Innovation Professor at Harvard Medical School.
Among the current and future applications of the technology, he sees radiology and pathology applications that help caregivers better treat patients; AI scheduling systems used to predict which patients will show up for appointments; and natural-language processing that could be used to help fill out medical charts, giving doctors more time to spend with patients.
He says doctors and administrators are clamoring for the technology. AI vendors are looking to meet that demand.
“It is the perfect storm for the alignment of AI and health care right now,” he said.
Artificial intelligence is also popular with retailers, which are harnessing large data sets, cloud computing, and machine learning and computer vision to improve everything from customer service to forecasting and replenishment.
“We’re finally at the point where we can enable AI,” said Barbara Sanders, vice president of technology and chief architect at Home Depot Inc., adding that it’s still early days in the deployment of AI.