Subj : Companies are enduring "AI roulette" when it comes to tech invest
To   : All
From : TechnologyDaily
Date : Thu May 16 2024 11:30:05

Companies are enduring "AI roulette" when it comes to tech investment

Date:
Thu, 16 May 2024 10:15:50 +0000

Description:
Companies arent predicting their tech investments properly, with many 
throwing money at AI just because everyone else is.

FULL STORY
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New research has revealed that only half (53%) of projects yield measurable 
benefits. 

A report from Ardoq badges companies efforts as trial and error, highlighting 
that three in five (61%) of CIOs say their investments are driven by the fear 
of missing out. 

Others (79%) consider emerging technology investments to be imperative, 
expressing concern that they might fall behind if they fail to jump on the 
bandwagon. Businesses arent investing effectively 

Among the 700 CIOs and IT leaders in large enterprises with more than 2,000 
employees, four in five (82%) agreed that its easy to AI wash a product to 
make it more appealing with new capabilities, without necessarily creating 
any tangible business benefits for the extra spend. 

Two-thirds (65%) also considered artificial intelligence investments to be 
high-risk, indicating a sense of uncertainty around their expectations when 
it comes to ROI. 

Ardoq CEO Erik Bakstad commented: In todays fast-paced digital era, those 
that can adopt new technologies quickly and fuse them into the fabric of 
their business can unlock huge rewards. 

Bakstad also highlighted the careful thought that should go into AI spend: 
Organizations must be prepared to navigate the risks, or could find their 
technology investments falling short of expectations. 

According to the study, the average enterprise spends $43.4 million on 
emerging technologies every year, however the lack of a robust ROI predicting 
system sees some of the money being wasted. 

This sentiment is quantified in the two-thirds (64%) of CIOs who say that 
theyve been burned in the past with investments that failed to deliver. 

Bakstad added: By harnessing data to inform decision-making at every turn, 
organizations can navigate the complexities of emerging technology adoption 
with confidence. More from TechRadar Pro These are the best AI tools and best 
AI writers Why your GenAI investments must start with optimizing cloud 
strategy Weve made a list of the best productivity tools to help your workers 
achieve more



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Link to news story:
https://www.techradar.com/pro/companies-are-enduring-ai-roulette-when-it-comes
-to-tech-investment


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