'To become enterprise-wide AI-ready and realize the promise of this technology… it is imperative to establish a robust and scalable foundation'
Employers are banking on artificial intelligence (AI) to provide a lot of positives, but very few have put in the groundwork to actually benefit from the technology, according to a recent Infosys report.
Overall, enterprises expect an average increase of 15% in productivity from their current AI projects, with some anticipating up to 40% gains.
However, just 2% of organizations are ready across all five key dimensions to benefit from AI, said Infosys.
The study looked at how prepared companies are to sign off on AI projects with a validated business case and return on investment (ROI), comply with policies, ensure resource availability, define clear use cases with target customers and ensure sign-off with a governance council or similar.
Only 15% of respondents are confident that their AI projects have these elements in place, according to Infosys' survey of over 1,500 respondents across Australia, New Zealand, France, Germany, the United Kingdom, and the United States, backed up with in-depth interviews with 40 senior executives in the US and UK.
Source: Infosys
"To become enterprise-wide AI-ready and realize the promise of this technology, including gen AI, it is imperative to establish a robust and scalable foundation,”says Mohammed Rafee Tarafdar, chief technology officer, Infosys.
“Our research and learnings from our AI-first transformation journey has shown that data readiness, enterprise gen AI platform with responsible AI guardrails, and AI talent transformation are key to accelerate and democratize AI development. This must be complemented by an AI foundry and factory model for scaling AI initiatives across the enterprise."
The majority of global enterprises that use generative AI have reported payoffs within the first year of its implementation, despite earlier indications that return on investment (ROI) on Gen AI initiatives won't be immediate, according to a Google Cloud report.
How do you maximize AI effectiveness?
Infosys’s research outlines five steps to close the gaps and reduce apprehensions about AI to accelerate adoption:
- Develop a comprehensive AI strategy: A strong AI strategy aligns with business objectives, enhances revenue growth, and ensures desirable, feasible, and viable use cases. However, only 23% of our respondents show readiness in this area.
- Establish responsible AI governance: AI governance is crucial for managing risks like bias, misuse, and security threats. Only 10% of companies have well-defined governance processes.
- Upskill the workforce: Only 21% of enterprises say their employees have the requisite knowledge to adopt AI tools and techniques. And just 12% offer adequate training.
- Prepare data infrastructure for AI: Data health is crucial for AI success but remains a challenge. But only 10% of the companies find their data easy to access, while 30% rate their data accuracy and governance as poor.
- Cultivate a culture of tech-powered innovation: Technology is a significant gap in enterprise AI readiness, with only 9% of companies fully prepared.
“This readiness gap represents both a challenge and a massive opportunity,” says Jeff Kavanaugh, head of Infosys Knowledge Institute.
“Those who act now – by building a clear AI strategy, including gen AI, establishing strong governance, and upskilling talent – will not only lead the next wave of innovation but will fundamentally reshape their industries. AI is not a distant goal; it is the prerequisite foundation for future competitiveness. The time to invest in AI readiness is now."
Nearly three in four organizations across the world have yet to see tangible value from their investment in AI, leaving them at risk of falling behind those who have already realized AI's potential, according to report from the Boston Consulting Group.
