New research suggests that firms are seeing a greater return on investment from AI than any other area. But an amorphous definition of the technology may be masking its actual impact – and risks – with fewer professionals seeing it as “very important” in areas such as customer engagement.
Artificial intelligence is a broad term that can mean many things. Over the last two years, it has been most commonly used to talk about the latest generation of machine learning and generative AI technology, with large language models (LLMs) having been excitedly hyped following the public release of ChatGPT and its associated platforms.
But as time has passed, the hunt for a killer app or even a steadfast business case for AI has faltered, while investor sentiment has undeniably cooled. AI has not delivered on its early promises of content production or even large-scale analysis – and so, even as its proponents maintain a breakthrough is only billions in capital away, they have subtly expanded the subjects being discussed. Now, technologies which have been adopted as common practice for some time happen to be included in the explanations of why this new technology is indispensable to businesses.
Source: Apply Digital
This might be the case why, even as the economy shrinks, and most businesses endure difficult times, a new study from Apply Digital has found the vast majority of leaders insist the technology is already delivering them returns on investment. A 71% portion of 5,000 leaders surveyed said AI had delivered “the best return on investment” – ahead of various other forms of technology, from social media to CRM systems and mobile apps.
However, the researchers keenly note that “as highly ranked as these tools and tactics are, it is important to note that their significance does not necessarily equate to higher ROI”. At the same time, the broadened definition of AI may be inflating the figure. The firm notes that “AI is a broad term that can mean many things”.
Conflating the success of ‘AI’ in search algorithms, word-processors or translation programmes (among other services) with the other, grander promises of the technology can disguise what is actually being delivered, then. And this may have been illustrated by attitudes among leaders to AI in customer engagement.
While 72% of senior leaders aged between 35-44 or upwards of 55 said the technology is “very important” for customer engagement strategies, their younger counterparts are less convinced. Only 56% of managers aged 18-24 rate AI as “very important” for the same uses.
Speaking on the findings, Scott Michaels, Chief Product Officer at Apply Digital, commented, “The research findings pose interesting questions about how younger people – typically the keenest adopters of new tech – perceive AI, and this should give us pause for thought… The hesitancy we’re seeing among the next generation of managers about its role in customer experience highlights the risk of AI for AI’s sake. Unless it delivers tangible and quantifiable value, it could take longer to establish trust in AI as a truly transformative technology.”
Ultimately, it was not only the younger demographics who noted concerns of trust, when it was clear they were discussing a more specific form of AI. All demographics expressed some concerns over its use – with 57% of total respondents flagging data privacy and security as being the most significant risks. These are risks which cannot be overlooked, in the quest to deploy the technology.
To that end, Michaels concluded, “Ultimately, AI and other new technologies hold vast promise for operational efficiency and customer engagement, but we do need to be realistic – they are not silver bullet solutions. Unlocking their long-term value requires strong data management and cross-functional collaboration built on a culture of continuous learning and employee engagement.”