Digital transformation

How are executives transforming their businesses with AI?

Share this post:

The seemingly boundless possibilities for artificial intelligence (AI) have arguably made it the most important general-purpose technology of our era. Yet the immediate question in many executives’ minds has moved beyond the envisioned potential and towards how businesses are successfully implementing and using AI today.

To gain insight into this topic, the IBM Global C-suite Study Program interviewed over 3,000 C-suite executives across 20 industries worldwide about their current and planned use of AI. Eleven percent of these organizations (the Reinventors) are using AI in their business today and plan to continue investing in AI. In this report, we examine the Reinventors’ strategic and tactical movements and the driving forces that underpin them.

40% of orgs are pushing ahead with AI, AI for Business

The gist of it? Data. Personalization. People. For many companies, the problem has evolved from a dearth of data to data overload. Businesses now have massive amounts of data available to leverage and create custom, one-on-one experiences; yet many struggle to harvest and manage their data, and even more face the challenge of using that data and information to make better business decisions.

More than half of the C-suite executives we interviewed (53 percent) said they think AI will give them a competitive advantage by improving customer experience and personalization. But Reinventors in particular understand that people, partnerships and technology go hand-in-hand. They’re using AI to rethink, redesign and reinvent their enterprises, positioning themselves to discover innovations that were once unimaginable.

reinventors use partners and enabling tech, AI for Business

The Reinventors are not only going a lot further with AI than most organizations, they are reaping the rewards as well. 7 in 10 Reinventors report higher revenue growth and profitability than their industry peers, while 9 in 10 say they are viewed as the most innovative company in their market.

They have other distinguishing characteristics related to their use of AI that provide strong indicators for other organizations wanting to make better use of their data, technology and ecosystems:

  • Personalized customer experience at scale: AI helps reveal hidden patterns and opportunities to develop market-of-one client relationships. More Reinventors say they will use AI to focus on this customer-facing aspect of their business model.
  • Transforming the operating model and supply chains: Over half of all Reinventors said they expect AI will help their operating model to become more competitive within the next two to three years. They say they’re focusing primarily on risk mitigation and management, particularly with regard to identifying, remediating and forestalling operational risk.
  • Enhancing workforce performance: More than twice as many Reinventors say they expect to augment their workforce by using AI to automate routine tasks, giving employees more time to dedicate to high-value add tasks.

Personalization and speed have become a standard expectation from customers and partners. To compete, organizations are rewiring their operating models for speed and responsiveness. The Reinventors have identified a way to make AI the “cornerstone” for technological convergence, to ultimately enrich and expand the sources and types of data available for in-depth analysis, understanding and discovery.

A clear gap is emerging between companies that have embraced AI and those that have not. Those that haven’t yet leveraged AI are missing out on insights and opportunities that could help transform their businesses.

How do you think you’ll apply AI in your business in the next two to three years?

To find out more about what organizations are doing with AI, read the full report.

More Digital transformation stories

Top IBM Power Systems myths: Power has no cloud strategy

There are many misconceptions about IBM Power Systems in the marketplace today, and this blog series is all about dispelling some of the top myths. “Power Systems has no cloud strategy” is a popular one and thus a good place to start. Why the confusion? Public cloud has garnered more industry attention than private or […]

Continue reading

Building your AI team: The roles your enterprise needs

Artificial intelligence (AI) isn’t just about frameworks, data sources and pipelines—it’s also about people. Enterprises embarking on an AI journey have a much greater opportunity for success when they have executive leadership support and the right talent in key AI roles. You know your business best and are in a position to make the right […]

Continue reading

Three ways to intelligently scale your IT systems

Digital transformation, with its new paradigms, presents new challenges to your IT infrastructure. To stay ahead of competitors, your organization must launch innovations and release upgrades in cycles measured in weeks if not days, while boldly embracing efficiency practices such as DevOps. Success in this environment requires an enterprise IT environment that is scalable and […]

Continue reading