Study: Few Brands Have Mastered AI And Machine Learning

Most companies have a long way to go toward becoming mature users of AI and machine learning.

Only 17% have mature capabilities, according to a new study from Rackspace Technology: Are Organizations Succeeding at AI and ML?

Another 31% are moving from POC/pilot to an AI/ML solution in production, requiring significant organizational work. And 51% are only at the exploratory stage.

Worse, 34% report have attempted artificial intelligence R&D initiatives — and failed. The main problems were:

  • Lack of data quality — 34%
  • Lack of expertise within the organization — 34%
  • Lack of productive-ready data — 31%
  • Poorly conceived strategy — 31%
  • Lack of integrated development environment — 29%
  • Lack of investment in the right people — 28%
But there are many benefits:
  • Increased productivity — 33%
  • Improved customer satisfaction — 32%
  • Better streamlined processes — 30%
  • Cost reduction in operations — 28%
  • Increased level of innovation — 27%
  • Increased understanding of your business and customers — 27%
  • Improved decision making — 27%
  • Enhanced performance/functionality of products — 27%
  • Increased sales — 26%
  • Faster time to profit—26%
  • Faster time to insight — 25%

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Here is how brands use AI and machine learning:

  • Component of data analytics — 40%
  • Driver of innovation in the company — 38%
  • Applied to embedded systems — 35%
  • Resource optimization — 34%
  • Predictive maintenance/predictive failure—31%
  • Create personalized customer journeys — 30%
  • Reduce operational costs — 30%
  • Drive new areas of monetization — 29%
  • Product lifecycle management — 27%
  • Optimization and testing—25%
  • Automate marketing campaigns—14%

The top key performance indicators when measuring AI/ML performance are profit margins (52%), revenue growth (51%), data analysis (46%), and customer satisfaction/net promoter scores (46%).

Rackspace advises brands to clean up their data and data processes before diving into an AI/ML initiative, states Tolga Tarhan, chief technology officer at Rackspace Technology.

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