4 factors to consider before investing in AI
Despite significant hype, most companies still struggle with how to successfully integrate artificial intelligence (AI) into their businesses. This is according to Lux Research’s new report on the state of AI and how companies can improve decision-making around AI.
The report, ‘Artificial Intelligence: A Framework to Identify Challenges and Guide Successful Outcomes,’ analyses in-depth the current state of artificial intelligence and provides companies with an outcome-focused framework that they can apply to make more successful investment decisions and better manage their AI projects.
4 major factors in making the right AI investments and decisions
- Clearly understanding the outcomes implementing AI will provide for their business
- Focusing on an AI product's capabilities instead of flashy marketing
- Knowing when the technology is mature enough to mitigate risk
- Identifying practical challenges to both implementation and maintenance of the technology once it is in place
“This report aims to arm companies with a framework to cut through buzzworthy marketing and accurately assess AI’s capabilities as they relate to their business needs,” said Cole McCollum, Lux’s lead analyst on the report. “Only then can companies make judgements on the maturity level of any particular product and fully understand the challenges inherent in implementing and maintaining these cutting-edge technologies. No investment is risk-free but following this framework will help avoid costly mistakes.”
The report strongly cautions against investing too early in applications that require more advanced AI capabilities, as they are often too immature and untested. What is clear is that the hype around AI will remain, and likely increase, in the coming decade. Companies that take a sober approach to AI investment that prioritises company needs and ROI and avoids a ‘technology-first’ approach will ultimately be better-positioned for success.