Many firms see AI as key to competitive advantage: Report
New Delhi, Oct 20 (PTI) A significant percentage of organisations see Artificial Intelligence as key to competitive advantage and said they have experienced a notable boost in productivity through AI integration, according to a new report.
According to the "Industry 5.0 and AI report", compiled by BML Munjal University, 44 pc of organisations have experienced a significant boost in productivity through AI integration.
Additionally, 21 pc reported that AI can play a pivotal role in driving innovation, enabling the development of new products, services and business models, particularly in sectors like finance, healthcare, manufacturing and marketing.
"Approximately 33 pc of organizations focus on product development, while 29 pc leverage AI for customer service through chatbots and robotic process automation (RPA). Marketing teams, representing 19 pc of businesses, utilize AI for trend analysis, while 13 pc apply AI to improve supply chain management. Financial planning, though less prominent (6 pc), benefits from AI’s efficiency-boosting capabilities," the report added.
Based on responses from 1,000 professionals and in-depth interviews with 50 industry experts, the report highlighted a significant shift in how businesses are integrating AI into their strategies.
While AI has delivered numerous benefits, the report also highlights some key challenges.
"Around 34 per cent of organisations face a critical shortage of AI-trained personnel which hinders their ability to fully leverage AI's potential. This skills gap highlights the need for better AI education and continuous learning programmes. In fact, 31 pc of organisations have started mentorship initiatives to help develop talent," the report said.
AI’s impact varies by sector; in mergers and acquisitions, 28 per cent have seen benefits in personalized campaigns, but data privacy remains a hurdle for 22 per cent. IT and augmented reality sectors report enhanced productivity (44 per cent) but struggle with talent shortages.
"In finance, AI improves risk management, though 18 pc face regulatory challenges. Healthcare has seen advancements in diagnostics, yet ethical concerns remain significant for 18 pc of professionals. In manufacturing, 23 pc recognize process optimization benefits from AI, but 21 pc struggle with legacy system integration," it said.
Qualitative interviews with industry professionals reveal that transparency in AI decision-making is crucial, with 21 pc expressing concerns about the "black box" problem.
"There are also ethical concerns, with 20 pc of respondents mentioning algorithmic bias and 22 pc expressing worries about data privacy. These issues show the need for responsible AI governance, prompting 38.3 pc of organisations to adopt ethical AI guidelines to ensure transparency," it said.
According to Pratik Modi, Dean School of Management, BML Munjal University, AI enhances human-machine collaboration.
"As organisations embrace this new era, the report's findings offer a roadmap for integrating AI while prioritizing ethical standards and fostering human creativity," it said. PTI
