63% Of Executives Say AI Leads To Increased Revenues And 44% Report Reduced Costs – Forbes

Recent surveys, studies, forecasts and other quantitative assessments of the progress of AI found that

745,705 autonomous-ready vehicles will ship worldwide in 2023 according to Gartner

AI business impact

63% of executives whose companies have adopted AI report that it has provided an uptick in revenue in the business areas where it is used, and 44% say AI has reduced costs; revenue increases from adopting AI are reported most often in marketing and sales, and cost decreases most often in manufacturing; about one-third of respondents say they expect AI adoption to lead to a decrease in their workforce in the next three years, compared with one-fifth who expect an increase (McKinsey online survey of 2,360 executives worldwide]

AI is helping Royal Dutch Shell locate new oil and gas sources. One of the companys 280 AI projects is aimed at helping the company find new sources of oil and gas by cleaning up data from seismic surveys, which are used to create images of rock formations that in turn help scientists locate oil deposits below the ocean floor. The problem, historically, has been that these surveys dont paint a clear picture of what rock formations look like. Underwater currents and other factors produce noisy data that affects the images. Shell created machine-learning algorithms, based on images the company has cleaned, to filter out that noise. Those surveys used to take human workers several months to interpret. The AI system reduced the time needed to produce clearer images by 80% [WSJ]

AI business adoption and attitudes

The McKinsey global survey found a nearly 25% year-over-year increase in the use of AI in standard business processes, with a sizable jump from the past year in companies using AI across multiple areas of their business; 58% of executives surveyed report that their organizations have embedded at least one AI capability into a process or product in at least one function or business unit, up from 47% in 2018; retail has seen the largest increase in AI use, with 60% of respondents saying their companies have embedded at least one AI capability in one or more functions or business units, a 35-percentage point increase from 2018; 74% of respondents whose companies have adopted or plan to adopt AI say their organizations will increase their AI investment in the next three years; 41% say their organizations comprehensively identify and prioritize their AI risks, citing most often cybersecurity and regulatory compliance (McKinsey online survey of 2,360 executives worldwide]

84% of C-suite executives believe they must leverage AI to achieve their growth objectives, yet 76% report they struggle with how to scale AI; 75% of executives believe that if they dont scale AI in the next five years, they risk going out of business entirely; companies that are strategically scaling AI report nearly 3X the return from AI investments compared to companies pursuing siloed proof of concepts; there is a positive correlation between strategic scaling and a premium of 32%, on average, for three key financial valuation metrics [Accenture survey of 1,500 C-suite executives from companies with a minimum revenue of $1 billion in 12 countries]

Fewer than 20% of organizations currently leverage AI to streamline and speed up processes; 55% believe AI and machine learning are key to meeting customer experience goals; only 15% agreed their organizations can leverage real-time data and 75% say their organizations plan to increase their use of real-time data in 2020; almost 70% say that AI or machine learning are used on only 1% to 20% of their companies' tech projects; nearly 80% plan to increase the use of artificial intelligence and machine learning over the next 12 months [Adobe survey of 200 CIOs from U.S.-based companies, with at least 100 employees; Fortune]

10% of organizations worldwide are actively using AI; in China, 14% of companies are using AI successfully [IBMs Institute for Business Value, CNBC]

The Life of Data, the fuel for AI

53% of IT professionals don't believe they have a true understanding of the term "data management" [ESG]

AI market forecasts and predictions

The AI market worldwide will reach $202.57 billion by 2026, up from $20.67 billion in 2018 [FinancialNewsMedia.com]

The AI in drug discovery market worldwide will reach $1,434 million by 2024, up from $259 million in 2019 [MarketsAndMarkets]

The AI in healthcare market worldwide will reach $19.25 billion by 2026, up from $0.95 billion in 2017 [Stratistics MRC]

Through 2022, deployment of artificial intelligence to augment, streamline, and accelerate IT operations will be a principal IT transformation (ITX) initiative for 60% of enterprise IT organizations [IDC]

By 2023, worldwide net additions of vehicles equipped with hardware that could enable autonomous driving without human supervision will reach 745,705 units, up from 137,129 units in 2018 and 332,932 units in 2019 [Gartner: There are no advanced autonomous vehicles outside of the research and development stage operating on the worlds roads now There are currently vehicles with limited autonomous capabilities, yet they still rely on the supervision of a human driver. However, many of these vehicles have hardware, including cameras, radar, and in some cases, lidar sensors, that could support full autonomy. With an over-the-air software update, these vehicles could begin to operate at higher levels of autonomy, which is why we classify them as autonomous-ready.]

AI Quotable Quotes

Todays [food] industry is ABCDAlways Be Collecting DataJohn Stanton, Saint Josephs University

In fact, artificial intelligence for business doesnt really exist yet. To paraphrase Mark Twain (or rather a common misquote of what Twain actually said), reports of AIs birth have been greatly exaggerated Max Simkoff and Andy Mahdavi, States Title

"It's really tempting if you're a CEO of a tech startup to AI-wash because you know you're going to get fundingBrandon Purcell, principal analyst, Forrester

The technologies that are coming out now, artificial intelligence, bitcoin, blockchain, smart contracts, they have the potential to transform the biggest industries in the world They all have the potential to be completely transformed now that there is artificial intelligence which actually can, in some cases, make better decisions than the humanTim Draper

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63% Of Executives Say AI Leads To Increased Revenues And 44% Report Reduced Costs - Forbes