Research from IDC has found that half of AI projects fail for one in four companies on average.
Put in such a context, the research offers little comfort for businesses considering AI investments. On the other hand, it means half of AI projects are successful for three out of four companies; a far more incentivising statistic.
The two leading reasons for an AI project failing are:
- A lack of required skills.
- Unrealistic expectations.
IDC’s research found that just 25 percent of the businesses using AI have deployed an ‘enterprise-wide’ strategy.
The researchers surveyed 2,473 organisations that are using AI for their study. Half of the firms see AI as a priority, while two-thirds are establishing an ‘AI-first’ culture.
Ritu Jyoti, Program VP of Artificial Intelligence Strategies at IDC, said:
“Organisations that embrace AI will drive better customer engagements and have accelerated rates of innovation, higher competitiveness, higher margins, and productive employees.
Organisations worldwide must evaluate their vision and transform their people, processes, technology, and data readiness to unleash the power of AI and thrive in the digital era.”
More than 60 percent of the businesses report changing their business model in response to adopting AI technologies. IT operations is the main area where AI is being adopted followed by customer service and fraud/risk management.
“For many organisations, the rapid rise of digital transformation has pushed AI to the top of the corporate agenda. However, as AI accelerates toward the mainstream, organisations will need to have an effective AI strategy aligned with business goals and innovative business models to thrive in the digital era,” noted Jyoti.
You can find a full copy of IDC’s report here (paywall).
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“IDC: Half of AI projects fail for one in four companies”