Daemon’s study reports a 48% AI investment surge since 2021, emphasizing its pivotal role in digital transformation.
The UK-based digital transformation consultant Daemon has published its most recent study, which looked at how companies were navigating the terrain of digital transformation. The consultancy Daemon reports that since 2021, there has been a 48% rise in AI investment. The research is titled “Is AI a craze or crucial: What are businesses really doing about AI?” maintaining the focus on digital transformation as a critical strategic requirement for all companies, big or small, with artificial intelligence being the newest and most important pillar.
The aforementioned discovery implies that artificial intelligence (AI) has disrupted conventional methods for technology expenditures, which typically necessitate comprehensive proof of the ROI and procurement procedures. It appears that decision-makers’ fear of missing out (or “FOMO”) on competitors by not embracing new technologies is driving at least some of the hunger for AI and ML.
In order to gather information, Daemon hired independent market research firm Vanson Bourne to survey 150 UK-based senior business decision-makers from a variety of industries, including financial services, retail, distribution, energy, oil, gas, and utilities.
Additionally, according to the study’s findings, 99% of organizations want to leverage AI or ML to take advantage of new opportunities. Compared to 91% of organizations in the financial services industry, 97% of organizations in the retail, distribution, and transportation sectors claim “some” or “significant” adoption of AI, indicating a strong appetite in these areas.
“It’s clear that organizations see the potential value of AI and are working quickly to implement this technology to yield an array of benefits,” said Ian Ray, head of data, ML, and AI at Daemon. Organizations must make sure AI is a strategic enabler as part of their larger digital transformation plan in order to maximize the commercial effect of their digital investments.”
Despite the enthusiasm for AI, concerns and challenges persist
The usage of artificial intelligence (AI) is envisioned by 98% of all organizations, and many of them are currently utilizing it to assist automation (51%), personalization (40%) and analytics ( 60%).
In addition, organizations want to use AI in less than six months to enhance other business skills, such as real-time optimization (40%) and chatbots (32%). The least used use cases are forecasting and smart control systems, although both will probably be utilised in the next year or two.
The main causes of low confidence among organizations were found to be worries about data security and privacy, which were followed by difficulties in locating a reliable vendor (31%), the belief that legacy technology is impeding organizations (29%), and the perception of low skill levels within the company (24%).
Nonetheless, the data indicates that companies are moving quickly with implementation in order to gain from AI/ML within the next 12 months. Increasing IT resources and closing skills shortages (33%) and improving customer experience (29%) are a few examples, as is getting rid of outdated systems (28%).
While many organizations are aware of the promise that AI and ML provide, many are still unsure of how much of an impact they can have. In general, ninety-seven percent of organizations concur that they could have a better awareness of the problems they need to solve when they implement transformation programs.
A significant number of organizations (43%) have requested strategic support in the last two years to address the difficulties they are attempting to overcome; this is an increase from 19% in 2021. The most frequent reason given for employing a digital transformation consultant is customer pressure, which has increased by 17% in the previous two years.
