Artificial Intelligence (AI) - Challenges and Opportunities

Artificial Intelligence (AI) has been implemented and is delivering on its promise at least at large companies including Facebook, Google, and Netflix. Retailers are using AI-powered robots in their warehouses, Utilities use AI to forecast electricity demand, Automakers are using AI for autonomous cars, and Financial Services companies are using AI to better understand their customers, look for potential fraud, and to identify new products/services customers will want. But as we look beyond the technology segment and these specific examples, AI adoption is still at a very early level. The typical company who has successfully adopted AI is larger than their industry peers, have already embraced the digital transition and well on the path to implementation, employ AI in the core of their value chain, adopt AI to increase revenue, and have the full support of executive leadership. The good news (according to the McKinsey Global Institute) is companies who are leading AI adopters have profit margins from 3 to 15 percentage point higher than industry averages in their market segments.