How to multiply the return on investment (ROI) through AI

According to the IDC study, the average return that companies have received from their AI investments is 3.5 times higher. While, thanks to artificial intelligence, 5% of organizations have increased their profitability by an average of 8 times.

In this article, we will look at how the artificial intelligence (AI) revolution is emerging as the fundamental driver of change in business. In addition, we will take an in-depth look at how long it will take to implement AI and how many months it will take to realize its benefits. We will also explore the various applications companies have found for AI and the challenges of its strategic use.

AI, Rapid Deployment, and ROI

IDC conducted a global survey involving more than 2,100 business leaders responsible for AI transformation in their organizations. Seventy-one percent of respondents indicated that their companies are already using AI. 

Surprisingly, 92% of AI implementations are completed in 12 months or less, and organizations see a return on investment in as little as 14 months. 

Moreover, the ROI is impressive, as companies get an average return of $3.50 for every dollar invested in AI.

In addition, 5% of organizations get an 8x return. The ROI of AI in media, telecommunications, and energy outperforms other industries, as we see in the following graph.

92% of AI implementations take 12 months or less, with an average implementation time of eight months. In turn, 40% of organizations achieve implementations in less than six months, demonstrating the speed and efficiency of AI adoption.

What are companies using AI for and how does it impact their revenue?

Beyond rapid implementation, it is important to note that AI takes on great value because, through this investment, it enables revenue growth.

For example, 41% of respondents indicated that the organization currently uses AI to automate IT tasks and that this enables them to improve revenue. While 55% of respondents indicated that the organization plans to use AI within 24 months for Copywriting tasks to increase their profitability.

In the following chart, we see the main use cases of AI in companies today and for the next 2 years, in search of higher profitability.

Challenges and keys to the successful adoption of AI in organizations 

Although the implementation of artificial intelligence offers notable advantages, it also faces significant challenges. According to 52% of respondents, lack of skills among employees stands out as the main obstacle. Other challenges include concerns about data loss, lack of data governance, and the absence of well-defined evaluation criteria.

Against this backdrop, the keys to adopting AI to increase business value are:

• Define clear business objectives: establish specific business goals and use cases for AI.
• Evaluate build vs. Buy: Determine whether developing in-house or acquiring existing AI solutions is more effective.
• Collaborate with trusted vendors: Partner with trusted technology and service providers to implement AI solutions.
• Establish a clear operating model: Ensure leadership and organizational structure that supports agile culture and experimentation.
• Prepare data and platforms for AI: Ensure data and platforms are ready to support AI initiatives.
• Focus on AI Governance: Implement policies, controls, and accountability structures around data privacy and responsible use of AI.
• Mitigate risks and promote safety: Take proactive steps to avoid negative scenarios and ensure safety using this technology.
• Manage change: Implement change management strategies to ensure a smooth adoption of AI across the organization.

As we can see, AI offers significant opportunities to multiply ROI for organizations. Those who adopt sound strategies, address challenges proactively, and establish a culture of innovation will be better positioned to reap the benefits of this AI-driven business revolution.

Bottom line, 

At Wezen we offer you a team of professional experts in Microsoft solutions, powered by this technology, who have the knowledge and experience to accompany your organization in the digital transformation.

Take advantage of the opportunity to multiply your ROI and lead in the era of artificial intelligence.  Write to us.

Source:

• The Business Opportunity of AI: How Leading Organizations Around the World Are Using AI to Drive Impact Across Every Industry, IDC sponsored by Microsoft, November 2023 URL