AI to have a profound effect on business by 2020

84 per cent of companies worldwide see AI as ‘essential’ to being competitive.

A new report by Tata Consultancy Services has shown just how profound of an effect artificial intelligence already has, and will have, on businesses everywhere. 

The “Getting Smarter by the Day: How AI is Elevating the Performance of Global Companies” study says 84 per cent of companies worldwide see AI as ‘essential’ to being competitive. Another half (50 per cent) see the technology as ‘transformative’.

Two thirds (67 per cent) of IT departments are adopting AI, mostly to detect security intrusions and deliver automation. This has made them the biggest adopters of AI today. 

North American companies were the leading investors in AI back in 2015, spending on average $80 million per company. Europe is second with $73 million, followed by Asia-Pacific ($55 million) and Latin America ($51 million). 

The report says financial investments will continue to rise, and the companies with the greatest financial improvements from AI investments expect three times as many new AI-related roles by 2020.

“As companies begin to gain a better understanding of AI’s application for business, they will realize the significant impact of this transformative force. This is reflected in our Global Trend Study, which shows that forward-thinking companies are beginning to make major AI investments,” said K Ananth Krishnan, Chief Technology Officer of TCS. “Given the increasing digital disruption across every industry and the public sector, AI should become a key and integrated component of an organization’s strategy.” 

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