Big spend on enterprise AI doesn't always deliver big returns
New research from Digitate reveals that while 92 percent of European organisations have implemented AI and automation, many lack a strategic approach to maximise the impact.
The study, based on a survey of 900 IT decision-makers in enterprises across Europe, finds that organisations have invested on average, €103.4M ($108M) in AI and automation over the last two years, with over half (59 percent) spending up to €295M ($309M). These investments have yielded significant returns, with 86 percent of organizations reporting a ROI averaging €154.7M ($162.4M).
UK enterprises lag behind their European counterparts on AI and automation investment and cloud adoption, as 34 percent of respondents only plan to migrate to the cloud for the first time over the next two years. Despite this, the UK has seen a much more substantial ROI of 50 percent compared to Finland -- where enterprises have invested the most and only delivered 10 percent ROI.
"European enterprises recognise the transformative potential of AI and automation, particularly in addressing their most pressing operational challenges," says Debasish Pattnaik, general manager, UK at Digitate. "However, the research indicates that many organisations are implementing these technologies on a departmental basis rather than as part of an integrated vision. Enterprises need to develop more comprehensive strategies to maximise the value of these substantial investments."
Among other findings 86 percent of organizations have implemented generative AI alonside AI and automation. 87 percent of UK organizations focus their automation efforts on IT, with 83 percent using AI to enhance IT operations.
The road isn't entirely smooth though. 94 percent of businesses say they have experienced drawbacks from AI or automation initiatives. Priority use cases aren't always delivering the expected benefits, for example, 40 percent of businesses have deployed AI for customer support, yet a superior customer experience is not cited as a top advantage of AI deployment.
The budget to implement automation and lack of technical skills -- both cited by 29 percent -- are seen as the greatest obstacles to AI implementation.
You can find out more on the Digitate site.
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