4 minute read 3 Sep 2020
Adoption of Artificial Intelligence (AI)

Can enterprise intelligence be created artificially?

Authors

Nitin Bhatt

EY Global Consulting Risk Transformation Leader & India Technology Sector Leader

Digital trust evangelist. Diversity & Inclusiveness champion. Classic rock buff.

Vijay Bhaskaran

EY India Automation and Artificial Intelligence Leader

Vijay is a seasoned AI and intelligent automation expert with deep expertise in driving AI-led transformation.

Mahesh Makhija

EY India Technology Consulting Leader

Technology evangelist, a facilitator of customer centricity and innovation

4 minute read 3 Sep 2020
Related topics Consulting Automation AI

Adoption of Artificial Intelligence (AI) is emerging as a potent force for enterprises to innovate and transform.

As the organizations witness a new paradigm, potential opportunities and benefits from adoption of Artificial Intelligence (AI) seem to be significant and real.The EY and NASSCOM joint study, . ‘Can enterprise intelligence be created artificially?, explores the maturity of AI adoption along with key challenges faced by organizations in their enterprise AI journeys.

The survey captures the insights of more than 500 CXOs across India to understand the perceptions of industry leaders on what AI means for their businesses and its strategic role in creating long term value. It also highlights the importance of organizations to address the key aspects of talent, data and technology governed by strong risk management framework and realize the transformational benefits of AI.

The “art of possible” for accelerating AI adoption

The survey reflects that enterprises across sectors are embracing artificial intelligence, albeit with varying levels of enthusiasm. Unsurprisingly, sectors which are intensive in terms of recorded or digitized data such as BFSI (36%) or retail (25%) have taken the lead on AI adoption. However, other sectors including healthcare (20%) and agriculture (8%) are also catching up and have many meaningful AI endeavors at different levels of implementation.

  • 25% of enterprises have deployed AI solutions
  • 60% of business leaders surveyed believe that AI will disrupt their businesses within three years
  • 55% of business leaders stated that they trust AI to make strategic and/or operational decisions

Business leaders appreciate the need to deploy AI for staying competitive and generating long-term value. Trust is an essential factor to enterprise-wide AI adoption.

In order to enhance AI adoption, four key impediments need to be addressed

  • Technology and data

    56% of respondents believe low external ecosystem maturity, especially with respect to technology and service providers, restricts their ability to accelerate AI initiatives.

  • Ability to prove ROI

    53% report that inability to objectively quantify benefits is a key factor impeding AI adoption.

  • Talent and culture

    AI led transformation warrants a change in organisation’s mindset to adapt to the newer ways of working, however, 40% of business leaders state that talent shortage is a key hurdle in implementing and scaling AI solutions.

  • Trust, ethics and regulations

    It is apparent that risk considerations must continue to evolve through the life cycle of AI in enterprises, calling for an end-to-end risk management and governance. 47% respondents consider AI explainability as a primary reason for holding back AI-led decision making.

“Business leaders appreciate the need to deploy AI for staying competitive and generating long-term value.”

Roadmap to moving up the AI maturity ladder

As enterprises look to determine the What and How of AI, it may be important to baseline their current level of preparedness and maturity. An enterprise AI maturity model could prove useful in providing enterprises with a frame of reference for their current state on maturity of AI and help define a roadmap.

Roadmap for moving up the AI maturity ladder

While the nature and intensity of challenges facing AI initiatives could vary by businesses, some key principles and methods enable them to deliver long term value. A mutually reinforcing combination of bringing together required resources through strategic planning and investments from the highest levels of the organization, and robust practices around data governance, security and privacy protection could ensure impactful AI programs with lower risks.

There are different lenses to look at AI value. Make sure that you have the right one for you. Different companies do it differently.
CXO
An industrial OEM company

Most organizations are barely scratching the surface when it comes to taking advantage of AI. The affirmation from the CXO respondents distinctly points us to an era where AI can power organizations to adapt operations in the “Now” phase and build resilience and reframe business as the “Next” and “Beyond” steps.

Modernizing existing technology infrastructure and creating a single view of data is a top priority for enterprises to scale their AI implementations.
CXO
A retail MNC

The EY-NASSCOM survey provides primary analysis on the overall AI planning and deployment maturity of Indian enterprises, vis-à-vis global players and also, individual industry level AI adoption maturity. It forms the bedrock for more in-depth sector-specific playbooks that enable enterprises within specific industries to fine-tune their AI journey.

Summary

AI adoption is a critical competitive lever. It enables business leaders to infuse technology at speed, while keeping humans at the centre to create long-term value.

About this article

Authors

Nitin Bhatt

EY Global Consulting Risk Transformation Leader & India Technology Sector Leader

Digital trust evangelist. Diversity & Inclusiveness champion. Classic rock buff.

Vijay Bhaskaran

EY India Automation and Artificial Intelligence Leader

Vijay is a seasoned AI and intelligent automation expert with deep expertise in driving AI-led transformation.

Mahesh Makhija

EY India Technology Consulting Leader

Technology evangelist, a facilitator of customer centricity and innovation

Related topics Consulting Automation AI