Capgemini, a company active in the sector of consulting, technology and outsourcing services, today announced the results of the study "Turning AI into concrete value: the successful implementers' toolkit". The research was conducted on approximately 1.000 companies with revenues greater than $500 that are implementing Artificial Intelligence (AI) as a pilot project or on a large scale.
The study neutralizes fears related to the possibility that Artificial Intelligence could cause, in the short term, huge job losses - in fact, 83% of the companies interviewed confirm the creation of new positions within the company - and highlights the growth opportunities brought by AI: three quarters of the companies surveyed saw a 10% increase in sales, directly linked to the implementation of Artificial Intelligence.
Creation of new jobs
The research, conducted on managers from nine countries and active in seven different sectors, showed that thanks to the use of Artificial Intelligence, 4 out of 5 companies (83%) created new jobs. Specifically, these are senior-level jobs, with two-thirds of new hires at managerial level or above. More than three-fifths of businesses that have deployed AI at scale (63%) also say there has been no job loss.
Along with the trend related to the creation of new managerial jobs, the report reveals that for many companies, AI represents a means to reduce the carrying out of repetitive tasks and administrative tasks, so that they can generate more value. The majority of respondents (71%) have proactively initiated employee upskilling/reskilling so they can take advantage of their AI investments. On the other hand, the vast majority of companies that have implemented Artificial Intelligence on a large scale believe that AI will simplify the most complex jobs (89%) and that intelligent machines will coexist with the workforce within the company (88 %).
“The intention, in essence, is to use human capital to its full potential,” said Michael Natusch, global head for AI at Prudential. «With Artificial Intelligence, the time that was previously spent on repetitive tasks is reduced, so that employees can focus on activities that generate greater value, both for companies and for customers».
AI users focus on customer experience
The study also found that companies with particular tech savvy are using AI to boost sales, enhance operations, facilitate customer engagement and generate business ideas. It appears that this strategy is already working, as three-quarters of businesses have already seen a 10% increase in sales. The focus of companies that use AI is confirmed on the customer experience: 73% believe that Artificial Intelligence can increase the degree of customer satisfaction, while 65% say that these technologies can reduce the future rate of abandonment by of customers.
Missed opportunities
The research shows that many companies have not yet aligned investments in AI with business opportunities. In the hands of the tech savvy, companies tend to prioritize challenging AI projects, thus losing sight of the most achievable goals. More than half (58%) focus on “need to do” applications, or those projects that are highly complex/providing greater benefits – such as customer service related areas. In contrast, only 46% of companies are implementing “must do” AI, characterized by lower complexity/higher benefits. If companies can address these areas simultaneously, they could experience higher business benefits. For example, those who implement a large number of “must do” use cases are able to reduce customer churn by up to 26% on average.
The traditional sectors are the driving force
Traditional and highly regulated industries are the most active in AI: 49% of telcos, 41% of retailers and 36% of banks have the highest degree of AI implementation at scale, while the automotive sector (26%) and the manufacturing sector currently record the lowest level of implementation.
Beyond sectors, there is a clear contrast between countries. Among enterprises that have implemented AI, over half of Indian companies (58%) are already using AI at scale, with Australia following close behind (49%). European countries, including Spain (31%), the Netherlands (24%) and France (21%), hold the lowest positions in the employment ranking, while Italy ranks third (44%) immediately after the Australia and followed by Germany (42%), in contrast with neighboring markets which are still unprepared to use this type of technology.
«AI has the ability to revolutionize companies in any market sector; its potential is vast and unlimited,” said Andrea Falleni, Chief Executive Officer of Capgemini Italy and Eastern Europe. “However, we are seeing a sharp divergence between enterprises deploying AI solutions at scale, those already reaping its benefits, and those just testing it out.”
“It is also quite significant that companies are focusing their efforts on the more complex AI projects, losing sight of the simpler ones, which could lead to faster benefits. Corporations, especially those that have not yet implemented AI at scale, should focus on those less complex, high-benefit projects to leverage the power of AI smarter and faster."
How to start implementing AI
Companies seeking to harness the power of Artificial Intelligence will face a number of challenges and will need to have a clear vision of where AI can generate the most lasting benefits, both for business and for customers. The report concludes by outlining a series of essential steps to kick off the implementation of Artificial Intelligence, including:
Manage the main challenges posed by technology and people
Identify areas where AI can create greater, long-term benefits
Combine top-down vision and bottom-up execution
Prepare the company
Study methodology
Research by Capgemini's Digital Transformation Institute offers an overview of the opportunities and benefits that artificial intelligence can bring to businesses. The report includes the opinion of 993 respondents from nine countries: Australia, France, Germany, India, Italy, the Netherlands, Spain, the United Kingdom and the United States. Among the participants in the study we find managers of the AI area (senior manager or with higher qualification) of multinationals, startups and vendors of seven different industrial sectors: automotive, banking, insurance, manufacturing, telecommunications, retail and utilities. The companies surveyed all have revenues of $500 million or more. The research was conducted between March and June 2017.
[1] “Deployment at Scale” refers to implementations that go beyond a limited pilot and test screenings and that are deployed on a larger scale across various business units, functions, and geographies.
