AI and Big Data playground – Ready to pick up a fight?
New economy boosters, such as artificial intelligence and machine learning strongly affect the entire investment landscape. Many businesses that have already made strategic investments in AI have quickly realized that using AI successfully lies not only in the technology itself, but also in the ability to structure available data appropriate to AI application requirements and to correctly interpret obtained results. That requires a new comprehensive business strategy and new market arrangements.
by Agata Marty.
AI front-runners, such as Microsoft, Google, Facebook or Oracle have made a number of deals in order to acquire data-related assets. Think of Facebook’s $19 billion acquisition of Whatsapp in 2014 or two of the latest Microsoft’s investments: the swoop of LinkedIn for $26 billion in 2016 or the agreement to acquire GitHub in 2018, the leading development platform software.
These are just some of the most prominent examples of how data plays a crucial role to business success.
At the same time, tech-companies are more flexible in implementation and development of data management, analytics and AI processes, hence can better exploit the AI potential than the traditional industry leaders. As they have not yet been burdened by complex legacy infrastructures they were able to build highly agile management practices. As a result, tech-companies pose an enormous threat to traditional businesses, and not only the big ones… The new entrants, such as fintech start-ups or big data companies with a culture of rapid execution are continuously increasing their market share and as a consequence, they are rightfully viewed as being the biggest risk of disruption.
Companies from all the industries are picking up the fight by changing legacy thinking and placing AI and Big Data as one of their key investment target, hoping to close the competitive advantage pursued by data-driven competitors in a long run. Results are already visible. According to the latest surveys made on selected IT and business decision makers from the largest companies worldwide (Vanson’s Bourne on behalf of Terada, the leading data and analytics company study : “State Of Artificial Intelligence For Enterprises”(2017) or New Vantage Partners’ annual executive study: “Big Data Executive Survey 2018” ) nearly 80 % of survey respondents already have AI in production and consider AI investments “to be worth the upfront costs”. Among the executives, representing 60 Fortune 1000 or the most powerful companies in various industries, 97.2% of respondents invest in AI and Big Data today. Almost 73% of participants claim that they have already received a measurable value from AI and Big Data initiatives. As the adoption rates are high, nearly 30% of respondents believe that their companies need to invest more within the next 36 months to remain competitive in their industry.
Challenges relating to AI and Big Data implementation:
Innovation in theory and innovation in practice are radically different terms. In comparison to dynamically scaling, agile startups, most of the existing companies struggle with the efficiency of innovation projects and its rapid execution. Surprisingly, one of the greatest concern for the companies are cultural issues relating to people and processes (80.9%) and not technology itself (19.1%). Only 28% of business leaders claim that their companies have enough talented and trained employees able to implement and accomplish AI driven projects.