Business leaders expect AI investments to pay off, but it might take time: study
New data links artificial intelligence to revenue growth
Wall Street is starting to recognize Googles AI potential: Jessica Inskip
OptionsPlay director of education and product Jessica Inskip analyzes Big Tech earnings on 'Making Money.'
Major tech firms like Microsoft and Google have invested heavily in new generative artificial intelligence, and businesses across industries are scrambling to integrate the new technologies into their systems to improve efficiency.
However, according to a recent report from The Wall Street Journal, Big Tech is struggling to turn a profit with the shiny new tools. Now, new data indicates the investments will absolutely be worth it in the long run — but it may take time and patience to see the returns, according to enablement tech firm Seismic.
"While the potential of AI in enablement is certainly thrilling, it also brings about a sense of apprehension surrounding the payoffs," says Seismic CEO Doug Winter. (Shutthiphong Chandaeng/iStock / iStock)
Enablement technology is defined as tools that reduce employee workload in myriad ways, including streamlining workflows.
WHAT IS ARTIFICIAL INTELLIGENCE (AI)?
Seismic's "The State of AI in Enablement" report for 2023 found that 80% of sales and customer service leaders at management level or above expect revenue growth from incorporating AI into their go-to-market processes, and the respondents predicted an average of 23% growth over the next five years due to AI utilization.
Big tech firms are investing heavily in AI, and while the payoff might not be felt yet, proponents say the return on investment is coming. (LIONEL BONAVENTURE/AFP via Getty Images / Getty Images)
The data showed the future looks bright for further adoption, too, with 87% of those who already use AI saying their companies plan to invest more in generative AI next year.
APPLE TO SPEND $1 BILLION ON AI IN CATCH-UP MOVE: REPORT
"While the potential of AI in enablement is certainly thrilling, it also brings about a sense of apprehension surrounding the payoffs," Seismic CEO Doug Winter told FOX Business on the findings. "The reality is: positive ROI stemming from AI-powered enablement efforts will take time."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MSFT | MICROSOFT CORP. | 406.32 | +7.28 | +1.82% |
| GOOG | ALPHABET INC. | 173.69 | +15.74 | +9.97% |
Winter pointed to the fact that 66% of the leaders surveyed said they encountered initial hurdles, like slow adoption and integration issues, before eventually realizing positive outcomes.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Still, a significant majority, 93%, of respondents who intend to boost their investment in enabling technology in 2024 attribute their decision to the significant advancements in AI.