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Since AI has been available to the masses, it’s changed the world. However, is it all that good for business? Well, according to a recent report from PwC, 56% of CEOs say AI has failed to deliver a measurable ROI so far.
This raises a bit of a question. Companies are pouring billions of dollars into AI and hoping it’ll improve their operations one way or another. The result, however, hasn’t matched the level of investment, which is worth examining more closely.
Over the last few years, companies have started using AI across all departments. This includes marketing departments, logistics departments, customer service departments, and the list goes on.
But is it bringing the value it’s supposed to bring? That’s the million-dollar question. For many, the answer is “not yet”. And that may not be an AI problem; it could just be how CEOs are applying it.
Netflix, for example, uses AI to recommend content. That’s great. Consumers can benefit from this. But by how much? It’s such a small feature. The main seller is the content itself; this is what will keep consumers interested.
Another example is Amazon. It uses AI to optimize logistics. However, the true value comes from the real-world system, like supply chains and delivery networks, to deliver actual value.
By looking at these examples, there’s a clear discrepancy between them. AI is being used to improve the experience; however, the experience itself is human-made. That’s where the real value comes from.
The challenge most businesses face is not access to AI. It’s how it’s applied. AI can do a lot, but it shouldn’t do everything. It can’t build a meaningful product or service, but it can enhance it.
A good example of this is an online live casino UK. These platforms are built around real human dealers interacting with players in real time, and that’s a big part of why they are popular. The human element is the selling point, which just shows how much value people place on general human interaction, even in a digital setting.
If we go back to the Netflix example above. The recommendations aren’t what improve the experience. It’s the content itself, and this content is created by humans again, humans.
The fact that 56% of CEOs report no ROI from AI is worrying. However, we think this number will improve. It’s not that AI doesn’t help operations. It does. The main problem is how we’re using it.
We shouldn’t be using it as a be-all solution. For example, “I’ll just let it optimize my logistics routes”. It can help, without question. But a human needs to intervene to help it implement improvements that aren’t spotted by data.
AI is a powerful tool, without question. It is not the shortcut everyone was hoping for, though. The companies that partner with AI will thrive the most. Those who just leave AI to do its own thing may experience very different results.
