Accelerating AI Adoption in 2024: Key Insights from The Economist
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Chapter 1: Understanding AI's Impact on Business in 2024
In the 2024 edition of The Economist's "The World In," there is a significant focus on artificial intelligence (AI). Notably, four articles stand out that are essential for anyone looking to understand AI's role in business. Watch my CarCast for further insights.
A few notable statistics are crucial as you strategize your AI adoption for the upcoming year:
- Approximately 75% of the applications of generative AI in business are expected to concentrate in four primary areas: customer service, marketing and sales, software development, and research and development.
- Between 2020 and 2022, around 8% of patents filed by major tech companies were related to AI.
- Outside the tech industry, only about one-third of global managers, as per a McKinsey report, use generative AI regularly at work. Roughly half have experimented with the technology but chose not to implement it, while about 20% have not encountered it at all.
In summary, those embracing AI are outnumbered two to one by those who are hesitant or reluctant. For context, even though businesses began using the internet in the early 1990s, it wasn't until the late 2000s that two-thirds of American companies had established a website. Many organizations still rely on outdated systems—consider the Japanese bank that continues using COBOL—which complicates the integration of advanced technologies. Additionally, managers in public sectors or heavily regulated industries, such as utilities, may lack the motivation to innovate, representing a significant portion of the economy, with these sectors accounting for a quarter of the GDP in the U.S.
Section 1.1: Strategies for Enhanced AI Adoption
If you're eager to boost AI adoption in 2024, consider exploring Tonya's book for valuable insights. Here are some key recommendations:
- Organize Your Data: Effective governance is crucial for success. Despite 43% of companies utilizing an average of 4–6 data platforms, a staggering 77% of data practitioners report issues with data quality (p44).
- Assess Skills Inventory: Understand the skills present within your team—both formal and informal (p59). It's advisable to conduct this assessment before identifying specific use cases. As highlighted in both Harvard Business Review and The Economist, keeping pace with technology advancements while training your workforce will be a challenge in 2024.