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Firms struggling to find RoI for AI projects

More than half of the companies investing in artificial intelligence (AI) projects have been unable to extract any tangible benefit, according to recently published research.

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Firms struggling to find RoI for AI projects

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Despite the challenge of proving a return on investment (RoI), the interest in AI appears to be rising.

A report from SaaS management platform Cledara found that there has been a 245% increase in the use of AI tools over the last 12 months. Unsurprisingly most of this work has involved ChatGPT, which has 33 times more use than its nearest competitor, according to the survey.

But while 82% of companies are experimenting with AI, only 47% are seeing tangible value. A quarter (24%) are acheiving cost reductions through greater operational efficiency while 11% have experienced revenue growth while 12% have experienced both. 

"While the excitement around AI is palpable, our data reveals a nuanced reality," said Brad van Leeuwen, co-founder at Cledara. "Businesses are rapidly adopting AI tools, but many are still navigating how to extract real value. This gap presents a significant opportunity for AI providers to demonstrate tangible ROI and for businesses to refine their AI strategies."

However, there does seem to be more success at attaining RoI within the financial services sector. Another study published this week found that 92% of financial services firms believe that AI is having a positive effect on their innovation.

Furthermore, the most popular use for AI is to support innovation, according to 58% of financial and accounting businesses, compared to just 35% using it for automation. 

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Comments: (3)

R Oates

R Oates Head of BFSI Business Modernisation UKMEA at TCS

AI has considerable long term potential, but is over hyped at the moment.  With any new technology defining the business case is crucial, but does not get enough attention as everybody want a "shiny new toy"

Maurizio Tommasini

Maurizio Tommasini Innovation Analyst at Bradesco S.A.

Interesting figures / numbers. Is it possible to get the link to the 2nd study mentioned in the article above? I would appreciate.

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

I started selling ERP technology in 1995. 30 years later, I doubt if even half of ERP buyers will declare publicly that they get ROI from ERP. 

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