BackEnterprises struggling to navigate AI, says Jayanth N Kolla of Convergence Catalyst
While organisations worldwide are looking to make significant investments in AI, doing so has been particularly challenging as talent is scarce and costlier, said Jayanth N Kolla, founder & partner of Convergence Catalyst.
PremiumMumbai: It has become increasingly challenging for enterprises to keep up with the pace of developments in artificial intelligence, Jayanth N Kolla, founder & partner of Convergence Catalyst said at Mint Digital Innovation Summit 2024, Mumbai, on Friday.
While organisations worldwide are looking to make significant investments in AI, doing so has been particularly challenging as talent is scarce and expensive. "The salaries of some AI engineers are double the market standards," Kolla said.
He added that rather than hire chief AI officers, companies should build ‘AI success officers’ to lead a cross-functional teams aimed at ensuring that AI adoption is successful and in line with the company's vision and strategy.
Enterprises have also been struggling to define their return on investment (ROI). "Close to 66% of enterprises are positive about ROI, [but] they are not measuring it. About one-third are talking about measuring ROI in terms of cost savings, about 9% think that ROI will come from new revenue opportunities," said Kolla, adding that ROI in enterprises is still a function of art and science.
Also read: GenAI can revolutionize healthcare: Siemens Healthineers' Dileep Mangsuli
Enterprise budgets are also swiftly moving from innovation and research and development in AI to software upgrades, which is a huge mistake, Kolla said. “About 90% of enterprise AI is IT infrastructure management, change management and data engineering, which is where companies are struggling," he added.
Companies also face challenges from geopolitical tensions, economic downturns and inter-generational workforce dynamics, Kolla said. "Enterprises are wired to find certainty in an uncertain world. There is a feeling that gen AI is the next crypto hype, which is not accurate," he added.
Kolla drew parallels between AI and the early days of Internet of Things (IOT) technology, which captured people's imagination with several consumer use cases. "That's how the revenues came in for IoT, and gen AI is also headed that way," he said.
Also read | The AI Race: OpenAI and Google are showcasing advanced models
He added that enterprises should start by using AI to automate simple tasks with a tolerance for failure. As their budgets grow, they should invest in more advanced innovation. "Companies should invest in corporate accelerators, startup incubators and entrepreneurial residence programmes because this is from where a lot of AI and gen AI innovation will come," Kolla said.A
3.6 Crore Indians visited in a single day choosing us as India's undisputed platform for General Election Results. Explore the latest updates here!
