ATLANTA--(BUSINESS WIRE)--Jun 18, 2024--
In today's world where rapid decision-making can mean the difference between success and failure, artificial intelligence (AI)-infused products and services are stepping up to fill the gap when human action falls short. According to the newly released report, “When and Where the Machine Should Rule,” AI systems are swiftly becoming a top priority for companies across various sectors.
The report, released today by Sparq, the leading U.S.-based digital engineering firm and builder of AI systems, surveyed 310 U.S. executives in financial services, transportation and healthcare. Data showed that companies spent an average $14.1 million each on AI systems in 2023 (or 0.1% of average revenue of $12.3 billion). Healthcare services and health insurance companies spent an average $23.4 million each, the largest investments in the three sectors.
“Moving to more advanced AI-infused systems that can take control is inevitable for companies that want to operate more efficiently and better serve customers,” said Monty Hamilton, CEO of Sparq. “The key is determining when the machine must act on behalf of the user, particularly when the decisions are complex and require a split-second response.”
According to surveyed executives, the number of systems designed to take decision-making away from humans when necessary has risen from an average 12% of applications implemented before 2020, to 16% for applications between 2020 and 2023, to a projected 25% for applications to go live this year and next.
On average, the companies with AI systems in place projected that 29% of the software applications they will implement in 2024-25 will take control of users’ decisions and actions when necessary. Similarly, these companies said 19% of AI applications implemented between 2020 and 2023 were designed to take control from users when necessary.
Building such applications can generate significant benefits but comes with considerable technical and organizational risks.
“As AI takes on more decision-making from senior managers and eventually top management, company leaders must proactively counteract internal resistance,” said Ingrid Curtis, president of Sparq. “A successful AI strategy includes investments in AI skills, tools and infrastructure.”
Despite the challenges, companies are moving forward with AI-infused products and services that take control. Among the study’s other key findings:
- Companies across the three sectors expect their investments in these applications to rise to an average $20.9 million per company in 2024-25.
- The average company implemented five AI-infused applications in 2023, and plan to implement another seven this year and next.
- The majority (55%) said their most successful AI-infused application generated strong or extremely strong benefits.
- On average, company respondents whose most successful application was in the sales function reported a 32% increase in revenue; those who said finance and accounting reported an average 32% cost reduction; those who said customer service reported service quality improved an average 27%; those who named strategic planning reported an average 34% reduction in the time it took to develop and implement a new plan.
To learn more and read the report, visit When and Where the Machines Should Rule.
About Sparq
Sparq is the leading provider of outsourced digital engineering to develop great digital products and experiences, purpose-built for the Cloud and powered by data and AI. With an emphasis on high-quality results, speed, flexibility and integrity, Sparq’s unique blended onshore/nearshore delivery model maximizes cost effectiveness, clear communication and the ability to quickly scale. The company offers world-class solutions to technology-driven and Fortune 1000 clients in various industries, including Logistics and Transportation, Healthcare, Financial Services, and Insurance. For more information, please visit www.teamsparq.com.
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SOURCE: Sparq
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PUB: 06/18/2024 09:00 AM/DISC: 06/18/2024 09:02 AM
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