Artificial intelligence (AI) adoption has been traditionally difficult to track as AI was mostly embedded in software. As such, end users did not typically perceive it as AI as much as a function of the product. However, a recent round of consumerization of AI tools has changed the landscape and use of AI in the enterprise.
AI’s ability to automate complex tasks and produce high-quality content efficiently has popularized these tools, but when it comes to enterprise adoption, the technology is still in its infancy. Despite low adoption statistics to date for AI compared to other technologies in our Technology Trends 2024 study, we predict that this will ultimately change.
AI has gained significant traction in recent years as its use is evolving. As shown in Figure 2 from our full report, Artificial Intelligence Adoption Trends and Customer Experience, the adoption rate for AI is 22% of all organizations in 2024, up from 18% in 2023. During the same period, the percentage of organizations making new investments in AI increased significantly from 28% in 2023 to 44% in 2024. Companies are starting to identify use cases for significant AI investments, with adoption expected to follow. This is likely to increase in the coming months and years.
AI is not a single technology but several closely grouped technologies that allow a system to absorb, analyze, produce, and learn from data to make a recommendation or take action. These technologies include rules-based reasoning, machine learning, speech recognition, natural language processing, facial/object recognition, and other capabilities. They can be deployed as standalones or embedded as features or capabilities within business applications.
“AI has shifted from being embedded in black box analytics tools to something consumers and businesses use daily, providing opportunities for further adoption and investment,” said Waynelle John, research analyst for Avasant Research, based in Los Angeles.
It is a relatively new technology, and its models continue to struggle with bias, hallucination, and generalization in their outputs. Furthermore, many AI chatbots do not cite sources or are trained using unauthorized data, leading to intellectual property misappropriation. Companies are still actively exploring its potential impact. It is, therefore, crucial for IT leaders to engage in strategic planning for AI deployment, recognizing that AI can be a huge help, but it is not a solution for every challenge. In some cases, it may be more effective to leave existing processes as they are or consider alternative non-AI methods.
Our full report provides an overview of AI adoption and investment trends, providing data on how many organizations have solutions in place, how many are in the process of implementing it, and how many are expanding implementations. We also look at the ROI experience, TCO experience, and considered or planned uses for new AI investment. We conclude with important principles to apply in planning and implementing AI systems.
This Research Byte is a brief overview of our report, Artificial Intelligence Adoption and Customer Experience 2024. The full report is available at no charge for subscribers, or it may be purchased by non-clients directly from our website. (Click for pricing.)