CIOs are still waiting for AI’s cost savings
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Pressure to deploy, not measurable gains, are setting the pace for enterprise AI investments, according to an Infosys report. Although demand for AI remains high, enthusiasm alone can't sustain the funding that enterprises are devoting to the technology. Global end-user spending on AI models and platforms will jump 63% from last year, reaching $64 billion in 2026, according to Gartner data from July. And many enterprises are running an excess of pilots - almost half of respondents of a recent Deloitte survey said they have more than 30 AI pilots in the works, knowing that several will not proceed. Still, organizations feel pressure to deploy AI without understanding its ultimate goals. Nearly three-quarters of respondents said the rush to prove short-term ROI is inhibiting their ability to experiment with more transformative, long-term AI initiatives, according to Infosys. This approach can lead organizations to pursue returns quickly while working with partial, inconsistent or misaligned signals, the report found. Only about half of respondents said they have a balanced KPI framework for evaluating AI's value in their organization. "Exponential impact is realized when AI capabilities are productized on enterprise platforms, allowing them to scale and be democratized across the organization," Rafee Tarafdar, CTO at Infosys, said in the report. "This is key to turn hype and...
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