Senior executives are lagging behind in AI-related corporate transformation: TCS survey

A study conducted by Tata Consultancy found that due to lack of tracking metrics and poor IT infrastructure, only VPs and above are discussing generative artificial intelligence (GenAI) and planning for it company-wide. It is said that only a select few senior executives are involved.Service Co., Ltd.

India's largest IT services company assesses the impact of AI on its business based on input from 1,272 executives from vice presidents to business leaders to CEOs across 24 countries and 12 industries We conducted a survey to find out.

According to the TCS AI for Business Study titled “From Possibility by Design to Performance,” only 17%, or about 216 senior executives, are discussing generative AI and considering making company-wide changes to it. It's a person. This comes as more than half of respondents say GenAI will have a greater impact on their business models than previous disruptive technologies such as the internet or smartphones.

Also read: AI asymmetry: Can IT services companies close the gap with their GenAI rivals?

At least 54% of senior executives surveyed believe their organizations are far from fully leveraging Al, with the main barrier being the quality and availability of enterprise data.

There are very few attempts to even move into an impactful AI environment. Even the cloud, considered a fundamental pillar of AI, has received little support from executives at companies that have enabled it. Only 29% of companies surveyed, or approximately 369 companies in absolute terms, are cleaning up and moving their data to the cloud.

The reaction from industry leaders follows an optimistic cloud outlook from Mumbai-based TCS CEO K. Kritivasan. “Today, clients see the cloud as a strategy for business transformation and growth. The move to cloud-native products and platforms is rapidly accelerating to deliver improved collaboration, security, scalability, and efficiency. progress is underway,” Kritivasan said in a letter to stakeholders in his annual report for the financial year ending March 2024.

Traditional problem

Many of the companies that participated in the TCS survey cited the challenges they found when integrating AI into their business as they found that their traditional hardware, software, and data ecosystems were unable to handle complex AI algorithms. included inadequate IT infrastructure;

“The IT infrastructure and applications that some large enterprises have are largely legacy-based. The focus of IT companies is on how to make these clients AI-enabled. It's only useful if your applications are up to date.'' Larger service providers with industry-specific services have a lot of work to do in this area,'' says Stamford-based IT advisory firm said Mrinal Rai, Principal Analyst, Information Services Group. .

The survey also found that security, privacy, and ethical use of AI are top concerns for companies regarding internal GenAI challenges. Two out of five respondents preferred global AI standards regulating outcomes.

Also read: Industry welcomes government move to amend GenAI recommendations

Companies also said they were unable to track the progress of AI implementation in their businesses because performance metrics were not clearly defined. He found that only about one in five respondents felt there were “good enough” metrics for AI adoption. The inability to track AI progress and assess its effectiveness has left businesses unsure of what AI technologies to adapt to.

focus on human creativity

Two-thirds of executives surveyed believe that human creativity and strategic thinking will continue to be a competitive advantage for their companies, indicating that AI is far from having a significant impact on business. ing.

“Currently, most organizations are using AI to assist humans. As AI matures, it will augment human activities and eventually supersede humans with the ability to generate ideas based on machine output. “AI will increasingly be used to transform business by enhancing thinking,” Kritivasan said as part of the research.

However, almost half of respondents acknowledged the threat of AI to human jobs. At least 47% of senior executives believe AI will destroy more jobs than it creates.

Also read: Remember that AI and GenAI are fundamentally transforming e-commerce

When it comes to AI driving revenue, most respondents believe that companies should not primarily focus on increasing revenue, but instead use AI strategies that can drive revenue, reduce costs, and improve customer experience. I think we need to consider building a.

“Out of 18 possible business objectives driving current AI investments, expanding revenue opportunities ranks 17th.” “This is difficult,” the TCS study said.

The survey found that the banking, financial services and insurance industries were the most optimistic about AI's potential and had the highest completion rates of AI projects. The industry is also expected to increase or stabilize the number of jobs due to AI.

The study also shows that the consumer packaged goods sector, which is highly dependent on quality and has little margin room, is still in the early stages of AI adoption and exploration.

In the financial year ending March 2024, TCS became the first Indian IT company to integrate its cloud and AI businesses, demonstrating that one team can deliver AI solutions across industries and geographies.