IFS Study: AI in Companies – Expectations and Reality

Could be better! Companies are falling behind AI expectations

2024-07-25 Source: IFS | Translated by AI 4 min Reading Time

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A recent IFS study shows that companies cannot fully meet management's expectations in terms of artificial intelligence.

IFS asked more than 200 German decision-makers about the implementation of artificial intelligence in their companies. In rough terms, it emerged that while many improvements are expected from AI, there are also certain obstacles and oversights...(Image: Tierney - stock.adobe.com) — IFS asked more than 200 German decision-makers about the implementation of artificial intelligence in their companies. In rough terms, it emerged that while many improvements are expected from AI, there are also certain obstacles and oversights...
(Image: Tierney - stock.adobe.com)

A new study by IFS, a leading provider of cloud business software, reveals that German executives want to follow the hype around artificial intelligence (AI), but companies are not yet able to meet the expectations placed on them in practice. The global study "Industrial AI: the new frontier for productivity, innovation and competitiveness" involved 1,700 top decision-makers from 12 countries - including 207 from Germany. Despite the current challenges, however, the majority of respondents trust that with the right AI strategy, great value will be created for their company.

German decision-makers are optimistic despite some hurdles

The implementation and realization of the full potential that could be tapped through the possibilities of artificial intelligence are therefore being slowed down by a lack of technology, processes, and skills. Respondents in Germany see themselves faced with structural and technological challenges in implementing their AI projects, but are nevertheless optimistic. The following evaluation now relates to the responses of the German executives:

AI as innovator, growth engine, and motivator

An overwhelming majority of respondents (91 percent) expect massive benefits for their company through AI. The three most important areas where AI tools can bring significant added value are product and service innovations, continuous business growth, and increased employee productivity. At the same time, 88 percent of German decision-makers report that the hype around AI is now so great that there is considerable pressure on them for faster introduction of AI tools. One of the biggest fears is apparently that AI projects could get stuck in the pilot phase if they are not properly planned, implemented and communicated.

Many decision-makers trust their employees too little

However, many companies have not prioritized the introduction of AI and do not have the infrastructure or skills to reap the expected benefits. This requires a robust industrial AI strategy – a strong combination of cloud, data, processes and expertise. Thus, 86 percent believe that a lack of strategic approach is an indication that the company does not have sufficient capabilities to successfully implement AI possibilities. This assessment is also clear elsewhere in the study. Because 43 percent of respondents believe that the expertise and skills of employees in relation to AI are acceptable, but could be improved.

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