AI in the Technology Industry

How the Need for Competitive Advantage Is Driving AI Investment

Introduction

The technology industry is all about developing and commercialising innovative ideas. That is why technology and artificial intelligence (AI) are a perfect match — an Edison-meets-the-light-bulb moment when companies can rethink and transform how they operate and succeed in the marketplace.

It’s clear that tech companies already recognise the opportunities that AI presents. They pioneered some of the AI innovations that many of us use every day, like virtual assistants from Amazon and Apple (Alexa and Siri, respectively) and the navigation systems in automobiles. According to a 2018 Protiviti study, technology companies expect value from AI investments to soar in as little as two years.^[1]

This white paper examines the issues that technology companies must navigate as they continue to invest in AI. Among the top concerns for companies implementing AI are how to derive business value from the technology and how to attract and develop the specialised talent needed to support AI programmes as they evolve and mature.^[2] At the same time, organisations must address some relatively new and highly complex issues that have put the tech industry in the media spotlight, including data privacy and business ethics.

AI Tech Industry

Key Takeaways

01

General managers are skeptical about AI, but technology executives are not: Only 14% of chief operating officers and 8% of chief executive officers (CEOs) see advanced AI as considerably or very important to the future of their businesses, while 57% of chief technology officers and 46% of chief data officers feel this way.^[3]

02

Leadership must understand exactly how AI will produce shareholder value. To create compelling pilots and proofs of concept, companies should address projects that are not easily solved by other analytical approaches.

03

Sourcing AI talent will be one of the biggest challenges for companies, so it is advantageous to create a talent development plan for AI initiatives early. Nearly one-third (31%) of respondents to our survey said the lack of AI talent and skills was a top obstacle to AI adoption.^[4]

04

Tech companies should consider the risks and rewards of AI development, practicing ethical AI and taking a balanced approach that prioritises good governance and responsibility to the larger community.

The extent to which technology companies can manage these issues and drive change constructively within their organisations will determine how quickly they can unleash the full power of this transformational technology.