New research has revealed that only half (53%) of projects generate measurable benefits.
An Ardoq report calls companies' efforts “trial and error,” highlighting that three in five (61%) CIOs say their investments are driven by the fear of missing out.
Others (79%) see investments in emerging technology as imperative and express concern that they could be left behind if they don't jump on the bandwagon.
Companies are not investing effectively
Among 700 CIOs and IT leaders at large companies with more than 2,000 employees, four in five (82%) agreed that it is easy to “AI-wash” a product to make it more attractive with new capabilities, without necessarily creating no tangible commercial benefit. for the extra expense.
Two-thirds (65%) also considered AI investments to be high risk, indicating a sense of uncertainty around their expectations when it comes to return on investment.
Erik Bakstad, CEO of Ardoq, commented: “In today's fast-paced digital age, those who can quickly adopt new technologies and weave them into the fabric of their business can reap enormous rewards.”
Bakstad also highlighted the careful attention that must be devoted to AI spending: “Organizations must be prepared to face the risks, or they could find that their technology investments do not meet expectations.”
According to the study, the average company spends $43.4 million on emerging technologies each year; However, the lack of a solid ROI prediction system causes some of the money to go to waste.
This sentiment is quantified by the two-thirds (64%) of CIOs who say they have been burned in the past with investments that didn't pay off.
Bakstad added: “By leveraging data to inform decision-making at all times, organizations can confidently navigate the complexities of adopting emerging technologies.”
