Realizing the Financial Value of AI
$30 million. That’s how much one of Neudesic’s manufacturing clients is projected to save with more accurate demand forecasting made possible by artificial intelligence (AI).
How did we do it? To help the manufacturer better understand its supply chain—and take the first step in a calculated approach to modernization—Neudesic quickly stood up a predictive ML model on the Databricks Lakehouse architecture and Neudesic’s Data & AI Platform Accelerator.
The company now has the infrastructure and analytics capabilities in place to optimize the supply chain and deploy a new enterprise resource planning (ERP) system without disrupting the business. And AI has strengthened decision-making across the manufacturing process. Most notably, once Neudesic implemented AI, the client was able to reduce forecasting from a tedious, resource-intensive two+ month process to a mere three minutes.
A powerful use case, for certain, but just one of many examples of how AI is driving transformative change for companies of all sizes across all verticals.
Follow the money—and you’ll find significant investments in AI
If you want a clear sign of the value of scaling AI, look no further than the amount of cash organizations are dumping into it. According to the CIO vision 2025: Bridging the gap between BI and AI, surveyed organizations from the leader group are planning sizeable investments between now and 2025, including:
- 101% increase in data security spending
- 85% increase in data governance spending
- 69% increase in new data and AI platforms and 63% on existing platforms
Why are the top organizations seemingly going all in on AI? It often comes down to data. Organizations are overwhelmed by the sheer amount of data coming at them from all directions, and they are struggling to manage, clean, organize and act on it. In a world where data rules, if you can’t figure all that out, you can fall behind your competitors, bleed revenue through operational inefficiencies, and minimize your profits.
Companies who want to future-proof their business are realizing the importance of investments in AI—and they have high expectations for it. According to the same report, net additions to revenue are expected to be the most tangible form of return gained from AI. And according to Domino Data Lab’s recent REVelate survey, nearly half of respondents expect double-digit growth as a result of data science.
Can you count on a positive ROI from your AI implementation?
All signs are pointing to “Yes.” Every day at Neudesic, we are helping organizations save money and boost profitability with Neudesic’s Data & AI Platform Accelerator, which is built on Databricks Lakehouse.
One of the biggest challenges our clients—and most organizations face—is that their data is not being used to its full potential. It’s siloed, unsecure, or outdated. Or they simply don’t have the resources to maintain it and analyze it for meaningful business insights. Databricks is foundational to our Data & AI Platform Accelerator because it eliminates all those data silos and dramatically simplifies the data architecture. Once you have visibility into your data—and can actually leverage it—opportunities to cut costs and boost revenues come into view.
How AI is driving profitability
Scaling AI offers the organization-wide visibility and insights needed to surface new opportunities, take calculated risks, cut costs and drive profitability. According to a Deloitte study, the top areas that drive ROI on AI investments include customer service and experience (74%), IT operations and infrastructure (69%), and planning and decision-making (66%).
Upgrading the customer experience. AI, in the form of chatbots, can answer questions 24/7 across the world, in any language, enabling human customer service agents to focus on more complex issues. And while customers do value human interactions, nearly 3/4 of global consumers say they are fine with organizations using AI if it makes life easier. Ultimately, you can help more people. Additionally, AI enables you to act on the massive amounts of customer data you are collecting, offering insights into customer behavior and preferences. With those insights, you can provide more personalization and relevant offers, which can prevent customer attrition, boost loyalty and bolster profits.
Boosting productivity and efficiency. Of all the benefits, this one produces the most tangible results. AI reduces architecture complexity, enables automation, and eliminates manual processes and repeatable tasks. It also dramatically reduces issues and time delays related to human error, so it can be game-changing for IT operations, but the benefits extend beyond the IT team. According to one recent study, AI could boost the productivity of the average knowledge worker by nearly 140%, adding approximately $50,000 in value per worker.
Improving decision-making. AI can analyze tremendous data sets and offer forecasts, predictions, and insights—in real time—a task humans could never do. Plus, the nature of AI means it gets stronger and more accurate with each task it completes, so the models for forecasting and predictions get stronger over time. It basically puts at your fingertips organization-wide visibility and instant access to the information required to make smarter, more calculated, less risky decisions.