SUMMARY
In January 2020 the AI Summit & Omdia, in partnership with Starmind and Forbes, commissioned a survey that saw over 1,000 thought leaders, business leaders, solution creators, and enterprise problem solvers take part. This high-level engagement gave us an insight into how AI solution providers and their customers see the developing AI industry. This space is experiencing phenomenal growth and interest, with the size of the AI software industry estimated to go from $5.4bn in 2017 to over $126bn in 2025, according to Omdia.
However, in the last year there has been growing introspection in the industry, with some even asking whether we are on the brink of an AI winter. These survey results suggest not – and yet, the road to much hyped AI solutions, particularly those which can cut across enterprise functions, is in a period of reevaluation, as the challenges have been underestimated, the pace of advancement overestimated.
In this period of reevaluation, it will be paramount for enterprises seriously considering the adoption of AI solutions across their business to engage high level backing from their board of directors and C-suite to breakdown business silos. For AI solution providers, definition, quality, and clarity should be your motto. Many AI solution markets are far from defined, and while the optimal approach to AI has been characterized as "go big or go home," there are still plenty of business leaders who do not see this as the case. This means that in providing quality point solutions and cornering your own defined niche there is plenty of scope for AI solution providers to generate large growth opportunities.
That said, clarity in your marketing and your solution is taking on increased importance. As executives begin to prioritize their own business needs more effectively, clarity of what your AI does and how it does it will become increasingly important. Regulators are waking up to developments in AI and the change it is bringing to our societies. A key limiter in the adoption of AI is mistrust in the decisions it comes to. In the long term those solution providers who can make their solutions explainable, and therefore accountable, will win greater market and mind share because their solutions can be better understood than their competition.
OMDIA VIEW
- Organization, not technology, is the key challenge in developing AI, particularly breaking through organizational and data silos.
- The challenges have been underestimated, and the pace overestimated, in the development of AI solutions.
- CRM, website operations, product design, marketing, and sales functions currently show the greatest levels of AI development and look set to be the most promising growth areas for the next couple of years.
- Development of cross-enterprise AI solutions are hampered by a lack of unified AI strategies.
- Demand for AI talent will only increase as enterprises realign and build out a comprehensive strategy to delivering an AI enabled organization.
RECOMMENDATIONS
- Enterprises should develop a unified cross-organizational strategy to AI, which could include appointing a Chief AI Officer or other CxO mandated to drive a holistic AI strategy. This will help breakdown internal organizational silos.
- AI solutions need to become more explainable, if AI is a black box it will be more difficult for executives to recommend it, especially where solutions are set to make decisions that come with accountability.
- Enterprises must prioritize where to play and develop AI capabilities in key functions critical to their business, so as not to spread AI resources too thinly.