44% organizations say AI integration has boosted productivity: Report
Artificial intelligence (AI) is being increasingly acknowledged as a key driver for competitive advantage among organizations, the "Industry 5.0 and AI report" by BML Munjal University states. According to the study, 44% of these entities have seen a major boost in productivity due to AI integration. Meanwhile, 21% feel that AI can drive innovation and ensure the development of new products, services, and business models.
AI's role in various sectors and services
The report notes AI's impact is most pronounced in areas like finance, manufacturing, healthcare, and marketing. Roughly one-third of organizations are using AI for product development, while nearly 30% are using it for customer service via chatbots and Robotic Process Automation (RPA). Also, 19% of marketing teams use AI for trend analysis, while 13% use it to improve supply chain management.
AI integration challenges
Despite the benefits, the report also highlights challenges in AI integration. About 34% of organizations are struggling with a critical shortage of AI-trained personnel, which prevents them from fully exploiting the potential of AI. This skills gap highlights the need for better AI education and ongoing learning programs. To address this issue, nearly 31% of organizations have launched mentorship programs to nurture talent.
AI's sector-specific impacts and ethical concerns
The report also goes deeper into sector-specific impacts of AI. In mergers and acquisitions, 28% have benefited from personalized campaigns. However, data privacy remains a concern for 22%. The IT and augmented reality sectors report improved productivity (44%) but face talent shortages. Meanwhile, ethical concerns are rife with 20% of respondents citing algorithmic bias, and 22% worrying about data privacy.
Need for responsible AI governance
The issues flagged in the report highlight the importance of responsible AI governance. In fact, over 38% of organizations have already adopted ethical AI guidelines to ensure transparency. Pratik Modi, Dean School of Management at BML Munjal University, stressed that "AI enhances human-machine collaboration." He added that as firms welcome this new era, the report's findings offer a roadmap to integrate AI while maintaining ethical standards and encouraging human creativity.
