While only 2% are ready, most companies expect productivity gains of 10-40% with Enterprise AI: Infosys Research

Rhea-AI Summary

Infosys Knowledge Institute's new research reveals that while companies expect significant productivity gains from AI adoption (15% on average, up to 40%), only 2% are fully ready across five key dimensions: talent, strategy, governance, data, and technology. The study, surveying over 1,500 respondents across six countries, highlights major gaps in enterprise AI readiness. Only 9% of companies have necessary AI capabilities, and just 10% report ease of data access for AI projects. The research outlines five important steps for successful AI implementation: developing comprehensive strategy, establishing responsible governance, upskilling workforce, preparing data infrastructure, and cultivating innovation culture.

Positive

• Companies expect 15-40% productivity gains from AI implementation
• Research provides comprehensive framework for AI implementation across five key dimensions

Negative

• Only 2% of organizations are fully ready for AI adoption
• Only 9% possess necessary AI technological capabilities
• Only 10% report easy data access for AI projects
• Only 21% of employees have required AI knowledge
• 30% report poor data accuracy and governance

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Enterprises need to prepare themselves in five key areas – strategy, governance, talent, data, and technology – to achieve significant productivity gains from AI

BENGALURU, India, Oct. 29, 2024 /PRNewswire/ -- Companies globally recognize the potential of artificial intelligence (AI) and are eager to adopt enterprise AI, yet most are far from fully integrating AI into their businesses and operations owing to large gaps in basic AI readiness, reveals a new research from the Infosys Knowledge Institute (IKI), the research arm of Infosys (NSE: INFY), (BSE: INFY), (NYSE: INFY).

The Infosys Enterprise AI Readiness report includes insights from over 1,500 respondents across Australia, New Zealand, France, Germany, the United Kingdom, and the United States, backed up with in-depth interviews with 40 senior executives in the US and UK.

The Infosys research highlights that while executives envision AI as the next industrial revolution, transforming business models and shaping the new economy, many companies lack the foundational building blocks for successful enterprise AI adoption. According to the research, enterprises expect an average increase of 15% in productivity from their current AI projects, with some anticipating up to 40% gains, yet only 2% of organizations are ready across all five key dimensions: talent, strategy, governance, data, and technology. The biggest gaps lie in technology readiness, with only 9% of companies possessing the necessary AI capabilities like machine learning frameworks, prebuilt algorithms, and dynamic compute. Additionally, data accuracy, processes, and accessibility are significant challenges, with only about 10% of respondents reporting ease of data location and access for AI projects.

To overcome these hurdles and realize the full potential of AI, including gen AI, companies must address readiness gaps and foster a culture of innovation. A clear AI strategy aligned with business objectives is essential, encompassing technology investments, talent acquisition, and ethical considerations.

The research outlines five steps to close the gaps and reduce apprehensions about AI to accelerate adoption:

• Develop a comprehensive AI strategy: A strong AI strategy aligns with business objectives, enhances revenue growth, and ensures desirable, feasible, and viable use cases. Only 23% of our respondents show readiness in this area.
• Establish responsible AI governance: AI governance is crucial for managing risks like bias, misuse, and security threats. Only 10% of companies have well-defined governance processes. Responsible AI requires tailored guidelines, and a centralized AI governance team. Infosys' Responsible AI Office, part of Infosys Topaz, demonstrates this approach by establishing policies to ensure data security and mitigate risks, enhancing AI's value for enterprises.
• Upskill the workforce: Despite the critical role of AI in enterprises, only 21% said their employees have the requisite knowledge to adopt AI tools and techniques. Upskilling is key, yet just 12% offer adequate training. Effective AI integration hinges on closing skills gaps and fostering collaboration. Forward-thinking firms are creating AI skill pathways to ensure readiness.
• Prepare data infrastructure for AI: Data health is crucial for AI success but remains a challenge. Only 10% of the companies find their data easy to access, while 30% rate their data accuracy and governance as poor. Enterprises need to constantly assess their systems, improve data quality, and ensure proper storage for effective AI implementation.
• Cultivate a culture of tech-powered innovation: Technology is a significant gap in enterprise AI readiness, with only 9% of companies fully prepared. Investing in foundational technologies like machine learning and automation can improve customer experience, reduce errors, and enhance compliance. Fostering a culture of innovation and employee readiness for AI adoption enables enterprises to create better value.

Mohammed Rafee Tarafdar, Chief Technology Officer, Infosys, said: "To become enterprise-wide AI-ready and realize the promise of this technology, including gen AI, it is imperative to establish a robust and scalable foundation. Our research and learnings from our AI-first transformation journey has shown that data readiness, enterprise gen AI platform with responsible AI guardrails, and AI talent transformation are key to accelerate and democratize AI development. This must be complemented by an AI foundry and factory model for scaling AI initiatives across the enterprise."

Jeff Kavanaugh, Head of Infosys Knowledge Institute, said, "Our research found that Enterprise AI, including gen AI, promises to unlock up to 40% in productivity gains, yet only 2% of companies are truly ready. This readiness gap represents both a challenge and a massive opportunity. Those who act now – by building a clear AI strategy, including gen AI, establishing strong governance, and upskilling talent – will not only lead the next wave of innovation but will fundamentally reshape their industries. AI is not a distant goal; it is the prerequisite foundation for future competitiveness. The time to invest in AI readiness is now."

To read the full report with detailed insights, please visit here. 

About Infosys

Infosys is a global leader in next-generation digital services and consulting. Over 300,000 of our people work to amplify human potential and create the next opportunity for people, businesses and communities. We enable clients in more than 56 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, we expertly steer clients, as they navigate their digital transformation powered by cloud and AI. We enable them with an AI-first core, empower the business with agile digital at scale and drive continuous improvement with always-on learning through the transfer of digital skills, expertise, and ideas from our innovation ecosystem. We are deeply committed to being a well-governed, environmentally sustainable organization where diverse talent thrives in an inclusive workplace.

Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate your next.

Safe Harbor

Certain statements in this release concerning our future growth prospects, or our future financial or operating performance, are forward-looking statements intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results or outcomes to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the execution of our business strategy, increased competition for talent, our ability to attract and retain personnel, increase in wages, investments to reskill our employees, our ability to effectively implement a hybrid work model, economic uncertainties and geo-political situations, technological disruptions and innovations such as Generative AI, the complex and evolving regulatory landscape including immigration regulation changes, our ESG vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity, capital resources, our corporate actions including acquisitions, and cybersecurity matters. Important factors that may cause actual results or outcomes to differ from those implied by the forward-looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2024. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.

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SOURCE Infosys

FAQ

What percentage of companies are fully ready for Enterprise AI according to Infosys (INFY) research?

According to the Infosys research, only 2% of organizations are fully ready across all five key dimensions: talent, strategy, governance, data, and technology.

What productivity gains do companies expect from AI according to Infosys (INFY) study?

Companies expect an average increase of 15% in productivity from their current AI projects, with some anticipating up to 40% gains.

What percentage of companies have the necessary AI technological capabilities according to Infosys (INFY)?

Only 9% of companies possess the necessary AI capabilities like machine learning frameworks, prebuilt algorithms, and dynamic compute.

How many companies were surveyed in the Infosys (INFY) Enterprise AI Readiness report?

The research included insights from over 1,500 respondents across Australia, New Zealand, France, Germany, the United Kingdom, and the United States.