Organizations globally are investing heavily in AI, but are failing to reap the rewards by neglecting investing in the necessary infrastructure, according to new research from EY.
The firm's first AI Pulse Survey found the number of companies investing $10 million or more in the technology is set to nearly double next year to 30%, up from 16% now.
Senior leaders said that around three-quarters are experiencing a positive return on investments in terms of operational efficiencies, employee productivity, and customer satisfaction.
The study noted that with higher investment rates, enterprises are unlocking greater returns. Those investing 5% or more of their overall technology budgets on adopting the technology are seeing far higher rates of positive return in terms of employee productivity, improved cybersecurity capabilities, and product innovation.
"Nearly all companies are investing in AI, but we’re seeing a divergence between companies experimenting in small ways and those making larger investments, with the leaders who continue prioritizing investments in AI increasingly ahead of the pack and experiencing positive returns," said Dan Diasio, EY global artificial intelligence consulting leader.
Among senior leaders at organizations that invest in AI, around half said that three years ago, they were spending less than 5% of their total budgets on AI investments.
By contrast, that figure now stands at 88% and is set to grow higher, with half noting they'll dedicate 25% or more of their total budgets towards AI investments in the coming year.
Despite the investment boom, it seems that many leaders are ignoring the basic foundations required to drive AI adoption, according to Traci Gusher, EY Americas AI, data, and automation leader.
Only one-third of senior leaders said that they’re investing equivalent levels of funds to build out data infrastructure. This, the study noted, could have knock-on effects with regard to data quality, accessibility, and governance.
"The survey uncovered significant risks on the path to enterprise-wide AI adoption, including data infrastructure, ethical frameworks, and talent acquisition,” Gusher said. “These are key to fully maximizing AI’s abilities and will allow organizations to differentiate themselves in the marketplace."
Meanwhile, 83% of senior leaders say they prioritize attracting workers who are knowledgeable of AI, only 37% are training or upskilling employees in AI.
"AI is clearly moving out of the hype phase and firmly toward being a viable means of productivity for organizations," Gusher said.
"As we move into the next phase of full-scale AI integration, leaders will need to develop a holistic strategy that completely reimagines the entire enterprise system to create an AI-centric business that best harnesses the transformative power of the technology."
