Facts on ROI of AI
Only 25% of AI initiatives deliver the expected ROI (Return on Investment) over the last few years. Moreover, only 16% scale throughout a business enterprise.
CEOs expect the growth rate of AI investments to more than double over the next two years. However, most won’t see a return. To avoid mistakes most businesses are going to make, here are facts on the ROI of AI to help make wise decisions.
Communicate with your organization and establish goals.
- 95% of the C-suite admit their company needs to improve the AI adoption process.
- 90% of AI startups fail within their first year of operation.
- 72% of the C-suite say their company has faced at least one challenge on their journey to AI adoption.
- 71% of the C-suite say AI applications are being created in a silo at their company.
- 68% of C-suite say AI adoption has caused division at their company.
- 39% of companies cite strategy, adoption, and scaling issues as their most significant roadblocks to ROI of AI
- 34% of the C-suite admit massive disappointment with AI adoption at their company.
- Only 15% of U.S. employees report their workplaces communicate a clear AI strategy.
Make the returns drive the investment, not a rush not to be left behind
- 64% of CEOs acknowledge the risk of falling behind drives investment and a clear understanding of the value AI brings to the organization.
- 59% of CEOs admit their organization struggles to balance funding for existing operations and investment in innovation when change occurs.
- 43% of employees and 44% of leaders say executives at their company talk a big game about AI but can’t deliver.
Identify the right human talent first.
- 94% of the C-suite are unsatisfied with their AI vendors.
- 54% of CEOs are hiring for AI-related roles that did not exist a year ago.
- 35% of companies cite a lack of skilled talent and data literacy as a significant barrier to getting value from AI.
Avoid technology mistakes; have data and infrastructure in place.
- 85% of AI projects deliver erroneous or biased outputs due to mismanaged expectations and data issues.
- 80% of AI projects with derailed outcomes report data issues.
- Companies underestimate AI deployment costs and infrastructure needs by as much as 10x, leading to scalability issues.
Set an ROI of AI goal for your business, and success goes from improbable to predictable and scalable.
- General Mills achieves more than $20 million in cost savings to supply chain optimization tools that use AI.
- Charles Schwab credits AI driving down per-client account costs by more than 25% in the last decade.
- Less than 2% of businesses see 100% returns currently.
- 50% expect cost savings by 2027.
Do these facts convince you that the ROI of AI is worth measuring and achieving for your business?
