A new study addresses the elephant in the room: How are companies creating revenue with artificial intelligence?
Now that the “shock and awe” phase of artificial intelligence is fading, senior finance executives can get down to business and figure out the best ways to generate revenue using AI.
Surprisingly, that issue has largely been left unaddressed in the rush to market artificial intelligence tools and applications before the competition jumps the line.
Since most large companies are either deploying or planning to deploy AI inside their companies, a new study targets the “revenue” question with senior executives across the globe. The report, issued by Mumbai, India-based Tata Consultancy Services, tracks 1,300 CEOs and other senior executives with P&L responsibilities across 12 industries and 24 countries. About half the companies had $1 billion to $5 billion in annual revenue, and the other half had over $5 billion in revenue, Tata reported.
A Focus on Usage Versus Revenues
Here are three big takeaways from the study:
Companies don’t yet have a grip on AI performance and financial metrics. Company executives are “less certain” about any path from AI to profit.
“Only 4% use AI in a way that has transformed their business, and nearly a quarter (24%) haven’t even moved beyond the initial exploratory phase,” the study noted. “Top barriers to business success include current corporate IT infrastructures and customer expectations.”
Senior executives also want ” to measure the success of AI implementations. “72% of survey respondents say they don’t have the right metrics,” Tata reported. “The survey also highlights the need for businesses to take a strategic approach to AI adoption and develop the right performance indicators to measure the impact of the technology on their businesses.”
Revenue pipelines are open. 86% of senior business leaders have already deployed artificial intelligence (AI) to enhance or create new revenue streams. The study also finds that 69% of businesses “are more focused on using AI to spur innovation and increase revenue than on productivity improvement and cost optimization.”
An additional 45% of respondents expect up to half of their employees will need to use generative AI capabilities to do their jobs in three years. “Another 41% think even more will do so. Most (65%) believe AI will augment and enhance human capabilities, enabling people to focus on higher-value activities that require creativity and strategic thinking,” the report stated.”
Additional data. According to the report, senior “ greater than or equal to” that of the internet (54%) and smartphones (59%).
Finance is the first realm of choice for AI deployment, with finance/comptroller (with an AI completion rate of 29%) taking center stage, followed by human resources (completion rate of 28%) and marketing (with a completion rate of 28%. Another 55% of respondents are “actively making changes right now to their business or operating models, or their products and services, due to AI’s potential benefits and risks.
Meanwhile, 93% of executives surveyed in the United Kingdom and Ireland said they have AI projects aimed at growing revenue. “Executives in other regions are equally enthusiastic, with 89% in North America, 88% in APAC, 83% in Continental Europe, and 80% in Latin America,” the report concluded.
Brian O’Connell, a former Wall Street bond trader and best-selling author, is a prominent figure in the finance industry. With a substantial background as an ex-Wall Street trader, he has authored two best-selling books: ‘The 401k Millionaire’ and ‘CNBC’s Creating Wealth’, demonstrating his profound knowledge of finance and investing.
Brian is also a finance and business writer for esteemed national platforms and publications, including CNN, TheStreet.com, CBS News, The Wall Street Journal, U.S. News & World Report, Forbes, and Fox News.
