Companies are rushing to invest in AI — but less than 20% of AI investments are resulting in the transformations that AI promises. VB Transform 2022 brought together business leaders from Intel, Wayfair, Red Hat and Aible to discuss how they’re beating the odds to actually harness the full value of AI.
“The word ‘transformative’ is the catchphrase there,” said Arun K. Subramaniyan, vice president cloud and AI, strategy and execution at Intel. “Twenty percent of the investments are actually reaping the benefits they were supposed to when you sold the project. And then whether they’re getting you the business outcomes at the level you wanted for that investment is really the question.”
Companies are beginning to walk rather than crawl; now it’s a question of how quickly they can get to the running phase, and then sustain that level of transformation. But transformation and business outcomes can take months, said Fiona Tan, CTO of Wayfair.
As a tech-enabled company in the digital space, focused on the home goods category, they’ve found the secret is focusing on practical applications of AI that tackle urgent business use cases. They’re also selective in terms of where they’re applying the AI and ML work that they do. But transformation takes time, she noted, because AI and ML capabilities are quite different than tr …