AI Enthusiasm? Curb It

February 10, 2020

Just because a technology is all the rage does not make it right for every organization. Citing a recent study from Lux Research, Information Management reports, “Study Cautions Against Investing Too Much, Too Soon in AI Technology.” The unrelenting hype surrounding AI solutions can prompt managers to invest hastily lest they miss out on the promised payoff. However, when a company implements a solution without properly understanding how it will, and will not, help their particular enterprise, they lose instead. Writer Bob Violino summarizes:

“Most organizations are still struggling with how to successfully integrate artificial intelligence into their businesses, according to a new report from research and advisory firm Lux Research on the state of AI and how companies can improve decision-making around the technology. The study, ‘Artificial Intelligence: A Framework to Identify Challenges and Guide Successful Outcomes,’ noted that decision makers oftentimes do not fully understand the technology and have not thought through the true costs of implementing AI in their businesses. … The report cautions against investing too early in applications that require more advanced AI capabilities, because it said they are often too immature and untested.”

The report advises companies avoid the “technology-first” approach and instead focus on their specific needs. Researchers identified four factors that lead to making a good decision: thoroughly understanding the outcomes AI will create for their organization; look past marketing messages to a product’s actual capabilities; identifying technology that is mature enough to mitigate risk; and being aware of any and all practical challenges to implementation and maintenance.

Founded in 2004, Lux Research supplies intelligence and strategic advice on emerging technologies to its clients in business, finance, and government. To that end, it relies on its own proprietary analytics platform. The firm is based in Boston.

Cynthia Murrell, February 10, 2020


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