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The AI financial results paradox | TechCrunch

Jul 15, 2024 - news.bensbites.com
The article discusses the impact of generative AI on businesses and the challenges faced by companies in measuring its actual contribution to business performance and revenue. It suggests that while businesses are eager to adopt AI, they are also seeking concrete proof of its benefits and are wary of vendor promises. The article highlights the difficulty in directly correlating AI tools, like Microsoft Copilot, with overall business performance. Investor Jamin Ball suggests that businesses may not see immediate results from AI investments, but warns that not investing could lead to loss of market share and relevance.

The article further discusses the dilemma faced by CIOs and CFOs in justifying the expenses of AI adoption, especially when the return on investment is uncertain. It likens the current situation to the shift from steam to electricity in the late 18th century, suggesting that ignoring AI could be detrimental. The article concludes by suggesting that businesses may turn to consulting firms like Deloitte, McKinsey, and Accenture for guidance, but this could increase costs and time to value. It leaves CIOs with the decision of whether they are leading their companies towards the future or wasting resources.

Key takeaways:

  • There is a growing consensus that generative AI will significantly transform businesses, and those who do not adopt it risk becoming irrelevant.
  • Companies are seeking concrete business metrics to prove the effectiveness of AI in improving business performance and revenue, and are not willing to trust vendor promises alone.
  • Investor Jamin Ball suggests that businesses may not see immediate results from AI investments, but these investments can lead to better end user experiences and potentially improve other metrics like retention or churn.
  • Despite the potential benefits, CIOs and CFOs are cautious about investing in expensive new technology without a clear understanding of when they can expect a return on their investment.
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