Companies Struggle to Harness the Power of AI, According to Research
A recent study by Carruthers and Jackson’s Data Maturity Index reveals that the majority of organizations are not effectively utilizing artificial intelligence (AI). The research found that as many as 87% of data leaders reported that AI is either only being used by a small minority of employees or not at all within their organization. This indicates a widespread “AI-induced paralysis” where only 5% of businesses have achieved a high level of AI maturity, established AI departments, or clear AI processes.
Caroline Carruthers, CEO at Carruthers and Jackson, emphasizes that every new technology goes through a period of justification, governance, and acceptance. She suggests that organizations should focus on four priorities to overcome the current AI paralysis. Firstly, organizations should start with a clear purpose and identify the problems they want to solve. Secondly, they should concentrate on targeted outcomes, starting with smaller problems where they can make a difference. Thirdly, organizations should communicate their successes and encourage others to join the AI journey. Finally, data leaders should use data to prove the effectiveness of AI projects and gain support for future initiatives.
Despite the hype surrounding AI, its development remains at a nascent stage. Carruthers points out that two major hurdles need to be overcome: people and regulations. Convincing employees of the value of AI is a challenge, as many fear job losses. Additionally, the uncertain regulatory environment surrounding AI raises concerns about data ethics and compliance with future laws. Many organizations are hesitant to fully embrace AI until the regulatory landscape becomes clearer.
The research also highlights the lack of solid foundations for AI initiatives. About 41% of data leaders reported having little or no data governance framework, while 27% stated that their organization has no data strategy at all. These figures show a slight improvement from the previous year but indicate that organizations still have work to do in terms of establishing data frameworks and strategies.
To be ready to exploit AI, companies must focus on creating a data strategy and a supporting governance framework. This will ensure that they have a solid foundation for AI implementation and can effectively harness the power of this emerging technology.
In conclusion, while many organizations are struggling to fully utilize AI, there are steps they can take to overcome the challenges. By focusing on purpose, targeted outcomes, communication, and data-driven results, organizations can start building AI momentum. However, it is crucial to address the people problem and navigate the regulatory landscape to fully embrace AI. Establishing data frameworks and strategies will also provide a strong foundation for AI initiatives. With these measures in place, organizations can unlock the potential of AI and drive innovation in their respective industries.