Dive Brief:
- Artificial intelligence is slowly moving from a promise to a reality for the broader tech market. Approximately one-quarter of organizations have AI initiatives underway or have already deployed the technology, according to a Gartner study of more than 3,000 CIOs. Almost 75% of customer interactions will feature machine learning applications by 2022.
- CIOs have the authority to manipulate the direction of AI, including how the technology can augment established services, how those services need to change to accommodate AI and what additional services AI can provide that were not possible before, according to the report.
- Companies that are late to implement AI have a "high risk of becoming uncompetitive, or even obsolete," according to Magnus Revang, a research director at Gartner.
Dive Insight:
AI is the next natural step in digital transformation. The cloud has come, and now it's time for CIOs to look to new technologies to better streamline company-wide efficiency.
Major tech companies such as Google began the race to AI domination and have started offering AI "crash courses" to open up a field in need of new talent. NVIDIA recently announced plans to expand its Deep Learning Institute and offer free AI classes from university experts.
Intel is investing $1 billion in AI startups, while Salesforce is doing the same with $50 million. Both companies know there is an emerging market for AI in the enterprise as its revenue market is expected to increase by 487% in less than five years.
Still, the AI market is not secluded to Silicon Valley companies. AI is a technology that will impact businesses' bottom line. Around 85% of executives say AI will give their organization a competitive edge, but only 16% say their organization understands its development costs. Less than one-third of IT decision-makers claim their organizations possess enough AI talent.
Gartner predicts by 2020 an additional 2.3 million jobs will be added to accommodate it.
