Annual MIT Sloan Management Review-Boston Consulting Group Study Finds Few Organizations Realizing Value From AI
CAMBRIDGE, Mass., Oct. 15, 2019 /PRNewswire/ -- After several decades of progress, AI technology is now poised to become a significant source of value for a wide range of businesses. However, companies are not yet realizing the value from AI, according to a major new study released today by MIT Sloan Management Review (MIT SMR) and Boston Consulting Group's BCG GAMMA and BCG Henderson Institute. The study reveals that although executives consider AI to be a critical business opportunity, many leaders are increasingly worried about the strategic risks associated with AI.
The study, as reported in "Winning With AI: Pioneers Combine Strategy, Organizational Behavior, and Technology," is based on a survey of more than 2,500 executives and several in-depth interviews with leading experts. The data reveals:
"Our study reinforces that AI is an urgent issue for executives across all industries. While some companies have clearly figured out how to be successful, most companies have a hard time generating value with AI," said report coauthor David Kiron. "How can executives exploit the opportunities, manage the risks, and minimize the difficulties associated with AI? These are pressing questions that need answers in order to pave a path forward."
The report shows that companies that capture value from their AI activities exhibit a distinct set of five organizational behaviors.
The report's analysis on cultivating talent reveals that 65% of respondents report obtaining business value from AI when using a multipronged talent approach: they build internal teams and rely less on outside vendors; they selectively import experienced AI talent for technical leadership roles; and they upskill their existing workforce to enable AI literacy and understanding of how to manage with AI.
"AI is a significant strategic opportunity and a major strategic risk if companies don't act thoughtfully. There is already a gap between winners and losers, and this gap will only get larger in the years to come. But to get value, technology and algorithms are not enough. Companies have to seriously integrate AI into their core business strategy and their core business processes. This is often much harder than the AI tech itself, and getting it right requires a new way of working that is different than typical tech programs," said coauthor Shervin Khodabandeh.
To read the full report, please visit MIT Sloan Management Review.
About the Authors
About MIT Sloan Management Review
About Boston Consulting Group
To succeed, organizations must blend digital and human capabilities. Our diverse, global teams bring deep industry and functional expertise and a range of perspectives to spark change. BCG delivers solutions through leading-edge management consulting along with technology and design, corporate and digital ventures—and business purpose. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, generating results that allow our clients to thrive.
About BCG GAMMA
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SOURCE MIT Sloan Management Review