#AI #London #United Kingdom #IBM #EMEA

Major Productivity Boosts from AI in EMEA

A recent study by IBM reveals that firms across Europe, the Middle East, and Africa (EMEA) are experiencing significant improvements in productivity due to artificial intelligence (AI). According to the findings, an impressive 66% of senior leaders surveyed indicated that AI has already led to operational productivity enhancements in their organizations. Furthermore, a considerable 41% of respondents are optimistic about recouping their investments in AI within less than a year.

In total, 3,500 senior executives from ten different countries participated in this comprehensive study, titled "The Race for ROI", conducted in partnership with Censuswide. Interestingly, large enterprises, with 1,001 to 5,000 employees, reported a much higher incidence of AI-driven productivity gains—72%—compared to just 55% of small to medium-sized enterprises (SMEs).

Expectations and Benefits

The IBM report reveals that around 85% of organizations prioritize interoperability, choice, and transparency in their AI systems. The need for ethical and responsible use of AI technology is emphasized throughout the results, with 85% of participants valuing transparency in AI integrations. This points to a broader desire among organizations to harness AI that is not only efficient but also trustworthy.

According to the data, only 68% of respondents cited security and privacy risks as significant barriers to successful implementation, which indicates a growing comfort with AI, yet a need for due diligence.

Transforming Business Models

Among those who reported productivity gains, about 24% acknowledged that AI had fundamentally altered their business models. This transformation is characterized by enhanced decision-making processes, increased operational efficiency, and improved capabilities of the workforce through automation of repetitive tasks. The essential benefits outlined were:

• - Operational Efficiency (55%)
• - Decision-Making Enhancement (50%)
• - Workforce Capability Augmentation (48%)

Moreover, a notable percentage of leaders (92%) expect that AI agents will provide measurable ROI in the next two years.

Barriers and Strategies for AI Deployment

Interestingly, the findings suggest that challenges still prevail, especially among public sector organizations. Only 55% of such organizations indicated they have made significant strides in achieving productivity boosts from AI.

As senior leaders strive to derive more value from their AI investments, they are urged to adopt proactive strategies:
1. Establishing Clear Operating Models: Organizations should implement universally understood approaches for AI integration, complete with clear ownership structures.
2. Fostering AI Literacy: Building awareness and education around AI tools is essential for all levels of the workforce to adapt to the sweeping changes introduced by these technologies.
3. Embracing Uncertainty: Companies are encouraged to cultivate a culture that views change as an opportunity rather than a threat, allowing for rapid innovation in an ever-evolving AI landscape.
4. Navigating Risks: Organizations must understand the regulatory and operational risks associated with AI deployment, using governance tools to mitigate potential issues.
5. Creating a Cross-Company 'AI Board': This board would be tasked with establishing ethical principles and reviewing higher-risk AI applications to ensure responsible usage.

Conclusion

IBM's findings shed light on the transformational impact of AI across various sectors in EMEA. As enterprises increasingly leverage AI for competitive advantage, the focus will naturally shift towards fostering an environment rich in transparency, ethical standards, and agile decision-making capabilities. The report serves as a clarion call for organizations to adapt and innovate, preparing them for a future increasingly characterized by artificial intelligence functionalities. For deeper insights into the impact of AI on productivity in EMEA, organizations can refer to the complete report, "The Race for ROI," available through IBM.