Adoption of AI enables firms to derive significant business value, thereby, allowing for transformation of business models and processes.
Over 90 percent of respondents consider AI to either be essential or highly relevant to their business.
This resonates well with extant research that AI / ML can reinforce the competitive advantage of incumbent firms. However, it is important to note that the source of competitive advantage with the application of AI may not come from the component algorithms or machine-learning technologies, but rather from access to complementary data that is either privately-held or proprietary in nature.
Firms consider AI to be either highly relevant or essential.
The findings in Fig. 2 are consistent with a recent survey of 126 C-suite executives of large Indian firms with more than US$1 billion revenue. T 80 percent of the executives opined in the survey that AI is essential to stay in business by 2025.^
Over 75 percent of the survey respondents have indicated that AI plays an important to a very important role in achieving all of the following business objectives:
a. A distinctive brand proposition
b. Enabling development of new products & services
c. Facilitating information to the executive management to develop business strategies
d. Integrating internal businesses processes
e. Linking the organization with its customers and suppliers.
Each of the below listed business objectives found concurrence with over 75 percent of the respondents:
• Reduce costs and process execution
• Reduce process error or failure
• Improve process utilization or productivity
• Increase Worker productivity
• Drive Process Innovation
• Allow workers to work on core competence
• Increase value to process customers
• Increase scale of operations
• Increase competitive advantage
This informs us that AI investments are being effected to achieve diverse business objectives in firms as reflected in Figure 4.