AI in the enterprise: the next wave of transformation
Enterprises must act now, or suffer serious consequences in five to ten years
Munich, September 25, 2018 – The use of artificial intelligence is one of the most important drivers for keeping enterprises competitive and making them fit for the future. However, according to the study “Reshaping Business Models: Understanding the Benefits of AI”, which advisory firm goetzpartners is presenting today, many companies have given insufficient attention to the disruptive potential of artificial intelligence already emerging today. What is certain is that over the next five to ten years, AI technology will transform entire industries.
For their present analysis of the current and future significance of AI for enterprises, goetzpartners experts reviewed a range of studies on the subject matter and supplemented their insights with a survey of a number of experts. They focused on telecommunications enterprises and industrials, as around 80% of enterprises in these industries already have some experience with artificial intelligence and can expect AI-driven change to have a particularly significant impact.
The key findings of the study are as summarized:
- Telecommunications enterprises and industrials are by no means reluctant to use artificial intelligence. However, they currently deploy the technology primarily to optimize existing processes with a view to gaining cost savings and greater efficiency.
- The potential of AI to be disruptive will fully unfold over the coming five to ten years, radically transforming business models in the telecommunications and manufacturing industries. By this point, at the latest, enterprises that lag behind other players in AI adoption will suffer serious consequences. Yet despite the acute need for action, AI initiatives can only deliver genuine value if they are aligned with the core of the enterprise and enhance it.
- The greatest AI maturity is found in business models and processes based on data that is too extensive, complex, or confidential to penetrate using human intelligence or conventional IT methods. Examples of this are network optimization and customer service in telecommunications, the entire field of predictive maintenance in the manufacturing industry, and also processing of personnel data in HR.
- Enterprises have to do the heavy lifting today in engaging artificial intelligence in order to make the right AI investment decisions for their business later. As in digital transformation, startups can be strong partners. Given AI technology is so complex, the upfront investment is often considerable. A clear investment strategy is therefore imperative to minimize risk. It is also feasible to source the relevant expertise as a service from external IT companies.
- The success of AI projects hinges heavily on the quality of the data – and in many enterprises, this is surprisingly poor. AI is set to become a key business driver in the future, so it is imperative to overhaul legacy structures right now, before it is too late, and create a robust future basis for capturing high-quality, comprehensive customer data, process data, and machine data.
What emerges clearly from the study is that the next wave of transformation in the telecommunications and industrial sectors will be driven by artificial intelligence. Whether the forthcoming changes will prove to be a benefit or a curse for enterprises in a few years depends largely on their current measures and preparations. The window of opportunity to make potential adaptations and the requisite decisions is still wide open. However, there are only two to three years to complete the AI experimenting and learning phase. During this time enterprises should make the necessary preparations and develop a strategic approach to AI.
Beyond high-quality analyses and expert assessments, the study provides a wealth of engaging and up-to-date information and statistics about artificial intelligence. The complete study “Reshaping Business Models: Understanding the Benefits of AI” is available for download here.
goetzpartners: Advisory for Strategy, M&A and Transformation
goetzpartners, founded in 1991, is an independent advisory firm for all key issues of entrepreneurial activity: strategy, M&A and transformation. As a trusted partner with a valuable track record and a far-reaching network, we are ideally positioned to help companies worldwide to navigate through their digital transformation challenges. With more than 350 professionals operating out of 14 offices in 11 countries, we advise decision-makers and top executives in all key industries.
goetzpartners, headquartered in Germany, ranks among the 10 best-performing German advisory firms (Lünendonk®). Boasting a vast wealth of expertise in both cross-border mergers and acquisitions and management consulting, we are trusted by clients to provide excellent insights, transaction advisory services and value creation. For four years running, goetzpartners has received awards as part of the renowned “Best of Consulting” contest (“WirtschaftsWoche”).
Anni Altkofer, Consultant
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