By Kelsey Kendall
The costs for tech companies to bring in new artificial intelligence technology is in the billions, according to reporting by . Helen Crompton, executive director of the Research Institute of Digital Innovation in Learning, said AI can be a useful tool for success. There is a rush to adopt this technology as it “promises transformative potential,” but there is still a need to carefully consider the best way to move forward to see the best return on investment.
Crompton said the initial investment in AI technologies can be substantial. This means companies interested in hopping on this latest trend need to be thorough in their considerations because “merely acquiring AI tools won’t guarantee success.”
Is there a need and is the workforce ready?
AI can be useful in automating or enhancing certain processes, Crompton said. The technology could be used to automate or enhance data analysis. This benefit to the business could lead to better decision-making and ultimately lead to savings down the road.
Additionally, studies have shown workers using the technology need to know how to use it effectively, Crompton said, and there needs to be training.
“There is little point investing in purchasing AI systems if people are not trained how to use it,” Crompton said.
Companies need to be aware of “AI washing." This is when the claim is made that a product or service is using AI, when it is not. It is an attempt to hop on the AI bandwagon while it is trending.
Crompton noted ” stores as an example. The e-commerce giant claimed customers could go into a AI-powered physical store – there are hundreds of locations worldwide in airports, stadiums and more – and walk out with their purchases without having to wait in line at a register. Customers would be automatically charged for what they got. It appeared later that thousands of people were working behind the scenes using video to monitor what was being purchased.
What are the ethical and privacy concerns?
Businesses must be mindful of data privacy and ethical considerations, Crompton said. Steps should be taken to protect sensitive information that might get leaked, and users should be aware of how AI works and how it could be negatively influenced.
“AI systems can be influenced by biased data, potentially leading to unfair or discriminatory outcomes. Businesses must adopt practices to mitigate these biases, such as using diverse training data and transparent algorithm development processes,” she said.
What is the return on investment?
If implemented correctly, it is possible for businesses to see a return on their AI investments. It can lead to more efficient processes and cost savings. It could predict customer trends and help with marketing campaigns, assist with financial forecasting and budgeting and help manage inventory.
The companies seeing the greatest profits from jumping into AI are not necessarily the tech companies, but the AI strategists advising companies on how to use these technologies. Crompton notes an example of Accenture, a consulting firm, which earned $3.6 billion from generative AI consulting alone.
“Embracing AI is not just about adopting cutting-edge technology; it's about transforming business operations to unlock greater efficiency and innovation,” Crompton said. “As the saying goes, AI will not replace humans, but humans who leverage AI will outpace those who do not. Businesses must carefully consider how to utilize AI effectively and ethically to stay competitive in the rapidly evolving landscape.”