Recent research from Qlik highlights a significant challenge: while many business leaders recognise the potential of artificial intelligence (AI) to drive profits, a substantial number of AI projects are stalling in the planning phase. This struggle to move from concept to execution raises concerns about trust, governance, and regulatory issues in AI adoption.
The State of AI Adoption in the UK
AI Projects in Limbo
The findings from Qlik reveal that over 11% of UK businesses have between 50 to 100 AI initiatives stuck in the planning stage. This backlog isn’t just a minor setback; it signals deeper issues within organisations that are inhibiting progress.
Cancelled Projects and Missed Opportunities
Additionally, around one-fifth of British companies have had to cancel up to 50 AI projects due to challenges in deployment. It’s clear that the transition from AI concept to AI execution is fraught with obstacles.
Key Challenges Facing AI Implementation
According to Qlik’s report, the primary obstacles include:
- Data Governance: 28% of respondents cited issues with managing data responsibly.
- Regulatory Concerns: 22% pointed to compliance challenges that hinder AI projects.
- Lack of Clear Ownership: 20% of leaders indicated that unclear accountability for AI initiatives stifles progress.
- Trust Issues: A staggering 41% of decision-makers reported that senior managers remain sceptical about AI’s effectiveness. Moreover, 17% acknowledged customer mistrust in AI applications.
A Shift Toward Ready-Made Solutions
Faced with these hurdles, many organisations are turning to ‘ready-made’ AI solutions. While this approach simplifies deployment and reduces risks, it often leads to a lack of personalisation and doesn’t cater to the unique needs of individual businesses.
James Fisher, Chief Strategy Officer at Qlik, underscores the importance of sharing insights and fostering a culture of trust within teams. He believes that enhancing understanding among senior management about the benefits of AI will prevent many projects from being sidelined.
Optimism on the Horizon: AI as a Revenue Driver
Despite the challenges, there’s a silver lining. A separate report by Cisco indicates that nearly 19% of UK partners anticipate that 76-100% of their revenue will stem from AI within the next four to five years. This demonstrates a growing belief in AI’s potential as a significant revenue source.
Overcoming Infrastructure and Cybersecurity Hurdles
However, the path to AI adoption is not without its challenges. Cisco’s research identified critical barriers:
- Infrastructure Issues: 33% of businesses cited inadequate infrastructure as a primary concern.
- Cybersecurity Risks: 32% highlighted cybersecurity as a major obstacle to AI deployment.
- Customer Experience: Only 6% considered customer experience a significant hurdle.
Alex Pujols, Cisco’s VP of Global Partner Engineering, remarked on the transformative potential of AI in business operations. However, he stressed the need for a collective effort to strengthen the practical deployment capabilities of partners.
Building Trust in AI
Creating a Culture of Trust
For AI to thrive, organisations need to cultivate a culture of trust. Here’s how businesses can enhance trust in AI:
- Transparency: Clearly communicate how AI systems operate and make decisions.
- Education: Provide training sessions for employees to understand AI’s capabilities and limitations.
- Engagement: Involve stakeholders in the AI project lifecycle to gather feedback and build confidence.
Embracing Personalisation
While ready-made solutions are a quick fix, businesses should invest in custom AI solutions that align with their specific needs. Personalisation can lead to better outcomes and more successful implementations.
Conclusion: The Future of AI in Business
In summary, while AI adoption is currently facing trust issues and operational hurdles, the potential for significant revenue generation remains strong. By addressing concerns around governance, infrastructure, and stakeholder engagement, businesses can overcome these challenges and harness the power of AI to drive growth.
As leaders, it’s essential to shift the narrative from scepticism to optimism. By focusing on building trust and tailoring AI solutions to fit unique business needs, organisations can successfully transition from planning to execution. The future of AI in business is promising, and those who embrace it will likely reap substantial rewards.
