Jason Katz, managing director at UBS Wealth Management, says market opportunities that once existed in e-commerce are now being seized by AI.
Many companies that integrated generative artificial intelligence tools into their operations last year have not seen the benefits they had hoped for, and some believe the new technology is overhyped. One expert says this will be the year these companies demand results.
“2024 is the year that companies will be told by AI, ‘Show me the money,'” says the CEO and founder of AI app development company Aible, and founder of the Harvard Business School course “AI in Market Facing Functions.” Mr. Arijit Sengupta, who is also a researcher, says:
According to a study conducted by IBM, the average ROI for generative AI projects last year was not very high. (license/image)
“CFOs are now demanding results from AI, but despite the success of early adopters with AI experience, ROI remains elusive for many organizations,” Sengupta said. Ta.
The former Harvard Business School executive fellow points to an IBM study showing that the average return on investment for artificial intelligence projects last year was just 5.9%, which analysts say is “lower than the typical cost of capital.” “It’s well below 10%.”
Sengupta said this data highlights a critical gap between the theoretical promise of AI and its actual implementation in the business world.
Businessman interacts with service AI-powered chatbot to analyze customer data, business, and technology. (Stiphon Chandeen/iStock / iStock)
“We are already in an AI bubble in that there is a disconnect between user expectations driven by aggressive marketing and what the technology can readily deliver,” he told FOX Business. Ta.
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According to Sengupta, ROI remains elusive for many organizations because lead times are too long. He said that if implementation takes more than a month, the underlying technology will be obsolete before the project is complete, arguing that “projects should take hours, days, or even weeks at most.” do.
Mahoney Asset Management CEO Ken Mahoney is keeping an eye on the earnings reports of five of the seven Magnificent stocks to be released this week.
Instead, many companies wait too long to have “enough” data before implementing. “Perfect data is a pipe dream,” Sengupta says. “We prioritize getting technology into the hands of end users quickly, cleaning up based on feedback, and AI will evolve As you go. “
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“AI requires a little configuration and context transfer to shine,” he said. “But marketing doesn’t talk about that reality, leading to customer dissatisfaction.”
