The fast development of artificial intelligence (AI) is not translating effectively into businesses' adoption rate because of obstacles to data privacy, regulations, and IT infrastructure, according to a recent MIT study.
According to the CNBC report, only 9% of business leaders worldwide surveyed by Australia-based Telstra and MIT Technology Review Insights, which polled over 300 business leaders globally, were adopting AI significantly.
Companies may reportedly need to enhance data quality and capacity, privacy safeguards, and AI skilling, and establish safe and responsible AI governance throughout the entire organization to use it.
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Many workers across the United States are increasingly adopting ChatGPT to streamline routine tasks.
The majority of company executives stated that they anticipate generative AI to be used for more than twice as many commercial activities or general purposes by 2024.
According to Chris Levanes, head of Telstra's South Asia marketing, early adopters in 2023 had primarily used the technology for automating low-value, repetitive operations because they required less human supervision.
By 2024, a staggering 85% of the participants anticipate using generative AI for these low-value jobs; 77% want to use it for customer support, and 74% for strategic analysis. Sales, supply chain management, and product innovation were other domains for possible implementation.
Read Also: AI Boosts Creativity in the Workplace But Performs Poorly in Problem-Solving, Study Finds
Businesses' Present AI Adoption
The study is being conducted at a time when an increasing number of workers fear AI may automate their employment. A recent report echoes the study's finding in actual reality as fintech company Klarna has integrated artificial intelligence throughout its business.
Most notably, it has an AI chatbot that the company claims can perform the same tasks as 700 customer service agents. Klarna powers e-commerce transactions for some of the most well-known brands in the world, such as Expedia, Macy's, and Nike.
Artificial intelligence has also been acknowledged by the US military to be used in the Middle East to find targets for airstrikes. This disclosure by a defense official clarifies the increasing application of cutting-edge technology in military operations.
Big tech major SAP recently revealed that it is reducing employment while investing more than $2 billion in artificial intelligence. They're taking this action as a part of a big company transformation. SAP announced that it would alter 8,000 employees at the same time. This news implies that while some individuals will lose their employment, others will receive AI work training.
The Wall Street Journal claims that several companies have already started using AI in their daily operations by employing it for content creation, marketing, and sales as well as code writing.
AI Disadvantages Currently Outweighs Benefits
Most businesses are reportedly pushing the boundaries of technology, reinvesting more widely in cloud and AI as they manage their corporate data, evaluating cybersecurity and other risks, and putting safety measures in place for its safe usage. A lot of chief technology officers and information officers anticipate that 2024 will be the year that generative AI lives up to its high cost.
Costs are a major concern for businesses when utilizing AI, as evidenced by a reported study from IBM's Institute for Business Value, MIT Sloan, CSAIL, and The Productivity Institute, which suggested that replacing human workers with AI may be too costly for businesses.
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