70 Percent of Companies Report C-Suite Involvement into AI Projects, with COVID-19 Driving Acceleration of AI Strategies – But Businesses Still Name Data as Key Challenge.
“Artificial Intelligence is neither,” according to my favorite quip. This field of computer science is perhaps the most misunderstood thanks to possibility thinkers like Ray Kurzweil and the many dystopian movies. Nevertheless, AI in its realistic form powers much modern technology. And not only for home artificial listening devices. Business and industry use it often, as well.
Appen Limited, the leading provider of training data for organizations that build effective AI systems at scale, has announced its annual State of AI Report for 2020. The report highlights increasing C-suite involvement and investment in enterprise AI projects as well as data being a key challenge as AI models get more frequent updates in production. The report also reveals the recent acceleration of AI strategies in the wake of the COVID-19 pandemic.
According to the report, nearly 75 percent of businesses now consider AI critical to their success, and AI continues to grow in importance across companies of various sizes and industries. Yet, almost 50 percent of those who responded to the 2020 State of AI survey feel their company is behind on their AI journey, suggesting a critical gap exists between the strategic need and the ability to execute.
“Many organizations have adopted the use of the internet at the core of their processes, and AI is on a similar journey from fringes to core value offering. Increasing investment in AI projects and greater involvement by the C-suite, along with accelerating enterprise adoption in the wake of COVID-19, are clear indicators that AI is core to business success,” said Appen CEO Mark Brayan. “However, most companies are still in the early stages and facing challenges, especially around training data.”
Key Takeaways from the 2020 State of AI Report
The C-Suite is now far more heavily invested and involved in the development of AI projects
Executive visibility and involvement in AI have increased over 30 percent year-over-year, with 71 percent of organizations reporting C-suite involvement in AI projects. What’s more, the percentage of companies investing over $5 million has effectively doubled compared to last year. With this level of executive involvement and increased budgets, ethics, governance, and risk management initiatives have become important topics for technologists building AI.
COVID-19 is not slowing AI Investment
Continuing investment in AI shows that businesses are choosing to spend in times of turbulence. Two-thirds of companies do not expect any negative impact on their AI strategies. Nearly 50 percent of companies have accelerated their AI strategies, 20 percent doing so “significantly,” betting their AI projects will have a positive impact on their organization’s resiliency, efficiency, and innovation.
“COVID-19 has changed everything about the way companies are operating today, but not everyone has adapted in the same way,” added Wilson Pang, CTO at Appen. “The State of AI report shows despite turbulent times, more than two-thirds of respondents do not expect any negative impact from COVID-19 on their AI strategies. Those that are prioritizing AI see the power of digital transformations as a way to improve their resiliency and long-term performance.”
Data remains the key AI challenge
Training data is the key to successful AI, with 3 out of 4 companies updating their models at least quarterly. However, 40 percent of those updating quarterly feel that a lack of data or data management is a challenge.
“Many businesses are still early on their AI journey and they are finding that their data needs span beyond in-house resources when looking for high-quality, annotated training data that drives AI success,” added Pang. “Industry leaders are turning more and more to third-party providers like Appen to help them deploy their AI projects.”