Introduction
AI investments have become the modern enterprise security portfolio. Workforce AI product usage can be compared to dividends at a macro scale. Compounded daily, weekly, monthly, and eventually over the years, the value added will be astronomical. Across the numerous types of AI investments, strategies, and initiatives, the formula of success tends to have the same foundation: a clear vision, practical value, and organizational support.
While certain industries are quicker than others to adopt, those high-performing organizations can see up to a 150% ROI on their AI initiatives. Those considered to be “average” in Bain & Company’s “State of AI Applications 2024” report*, aren’t even breaking even on their investments. With this, we see a massive yet clear gap, ultimately slowing down organizational progress at an abstract rate.
Detractors of ROI for AI Initiatives
In 2024, PWC’s “AI Predictions Survey”**showed a staggering $118 billion was invested in AI technologies globally. Unfortunately, 63% of these implementations failed to deliver expected returns. In the world of scalable investment to drive business growth, this illustrates a very concerning problem around strategy:
- 61% did not support key business goals.
- 47% were unsuccessful due to poor AI expertise and literacy.
- 42% of solutions implemented were poorly tied to organizational data.
Enablers for Successful AI Investments
BCG’s “AI at Scale: The Next S-Curve for Leaders”*** tells a powerful story of executive opportunity otherwise rare in today’s technical world. Organizations that invest in personalized
AI consulting achieves vastly superior outcomes:
- Accelerated Value Recognition: Customized AI strategies reported 45% faster time-to-value compared to those using standard use cases.
- Increased Probability of Success: Personalized AI initiatives showed a 78% higher likelihood of successful implementation.
- Reduced Overhead Cost: Strategic AI solutions supported by advisors delivered a 32% lower cost of ownership over 3 years.
Value added from Practical GenAI.
Forrester’s “The State of AIL Generative AI Use Cases 2024”**** analysis of 1800 AI implementations uncovered an incredible finding. Contextual understanding of data science and AI created exponential value with thanks to literacy and support:
- 3.7X higher ROI on AI investments compared to standard implementations.
- 58% reduction in scope creep and delays
- 52% improvement in user adoption rates.
Conclusion
The practical applications of GenAI tend to quite literally procure that “aha” lightbulb moment, and that’s where adoption’s success rate skyrockets. The gap between functional GenAI, literacy, and technology can be bewildering. Furthermore, the gap between data science and business users will ultimately make some organizations obsolete.
Having trained over 1000 enterprise professionals around driving internal value from artificial intelligence, AI Prophets is passionate about co-crafting AI solutions to enable human and business growth. Learn how to improve the usage of your AI products with the practical support of a data science expert.
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Academic References:
*Bain & Company. (2024). State of AI Applications 2024: Separating Reality from Hype. Bain.com. Retrieved October 2024.
**PwC. (2024). AI Predictions 2024: From Excitement to Execution. PwC Global. Retrieved October 2024.
***Boston Consulting Group. (2024). AI at Scale: The Next S-Curve for Leaders. BCG.com. Retrieved October 2024.
****Forrester Research. (2024). The State of AI: Generative AI Use Cases 2024. Forrester.com. Retrieved October 2024.
