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Anne Valaitis
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Beyond the Hype: Uncovering the Real State of AI Adoption in Business

Research findings from Keypoint’s AI Readiness survey

Jul 14, 2024 8:00:00 PM

 

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The AI revolution is upon us…or so we’ve been told for years. But as the dust settles on the initial wave of excitement, what’s really happening in the trenches of business artificial intelligence (AI) adoption? Our recent AI Readiness survey of over 450 business leaders across various industries reveals some surprising insights that cut through the hype and paint a more nuanced picture of AI’s current impact and future potential.

 

 

AI Adoption Is Widespread, but Depth Varies Significantly

The first takeaway that stands out is the pervasiveness of AI adoption. A whopping 94% of surveyed companies report some level of AI use, with 13% claiming “deep use of AI company-wide.” At first glance, this seems to validate the narrative of an AI revolution in full swing.

 

However, dig a little deeper, and a more complex story emerges. While adoption is widespread, the depth of integration varies dramatically. Many companies are still in the early stages, with 28% only using some AI features in existing tools like Salesforce. This suggests that while AI has certainly gained a foothold in the business world, we’re far from the sci-fi vision of AI-driven enterprises that some vendors might have us believe.

 

The reality is that most businesses are still grappling with how to meaningfully integrate AI into their operations. They’re exploring, experimenting, and slowly expanding their use cases. This measured approach is actually a positive sign—it indicates that companies are being thoughtful about AI adoption rather than rushing headlong into potentially risky or ineffective implementations.

 

The Impact of AI Is Real, but Not Always Where Expected

Our survey reveals that AI is making a significant impact, but not always in the ways or places one might expect. When asked about the benefits of AI initiatives, 61% of respondents cited increased efficiency and productivity. No surprises there. But interestingly, 53% reported higher quality outputs—a benefit that often gets overshadowed by discussions of cost-cutting and automation.

 

This focus on quality improvement suggests that AI's impact goes beyond simply making processes faster or cheaper. It enhances the work being done, leading to better products, services, and decision-making. This is a crucial point that often gets lost in the noise of AI hype—that is, the technology’s potential to elevate the quality of human work, not just replace it.

 

Another unexpected finding was the impact of AI on cross-departmental collaboration. A substantial 78% of respondents reported that AI technologies had significantly or moderately improved knowledge sharing and collaboration across departments. This hints at AI’s potential as a unifying force within organizations, breaking down silos and fostering a more integrated approach to business challenges.

 

Ethical Concerns and Data Quality Are the Next Frontiers

As companies move beyond initial experimentation with AI, new challenges are coming to the fore. Chief among these are ethical considerations and data quality issues. Our survey found that 53% of companies are currently developing policies to address ethical considerations and biases in AI, while 44% already have comprehensive policies in place.

 

This focus on ethics isn’t just about avoiding negative press or regulatory issues—it’s fundamental to building AI systems that can be trusted and relied upon for critical business decisions. As AI becomes more deeply integrated into core business processes, ensuring fairness, transparency, and accountability will be crucial.

 

Equally important is the quality of data used to train AI models. When asked about their confidence in providing high-quality, relevant, and unbiased training data, 81% of respondents expressed confidence (rating 4 or 5 on a 5-point scale). However, this high level of confidence may be misplaced, given the well-documented challenges in sourcing and preparing AI-ready data.

 

The gap between perceived and actual data readiness could be the next major hurdle for AI adoption. As companies push for more advanced AI applications, they may find that their data isn’t as clean, comprehensive, or unbiased as they thought. Addressing these data quality issues will likely be a major focus for AI initiatives in the coming years.

 

The Quiet Revolution

Our survey paints a picture of AI adoption that’s less flashy than the headlines might suggest, but potentially more transformative in the long run. We’re in the middle of a quiet revolution, where AI is steadily being woven into the fabric of business operations.

 

The challenge now is to move beyond the hype cycle—the over-excitement and the subsequent disillusionment—and focus on the practical, ethical, and data-driven foundations that will enable AI to truly transform business. It’s not about adopting AI for its own sake, but about thoughtfully integrating it in ways that enhance human capabilities, improve quality, and drive meaningful business outcomes.

 

As we navigate this new landscape, it’s clear that the real AI revolution won’t be marked by flashy headlines or miraculous overnight transformations. Instead, it will be built on a foundation of careful implementation, ethical consideration, and high-quality data…one business process at a time.

 

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