Tech Explained: Here’s a simplified explanation of the latest technology update around Tech Explained: ‘Belief alone is not enough’: New study reveals businesses are widely different when it comes to AI adoption — so what’s the best course? in Simple Termsand what it means for users..
- Nearly all businesses will maintain or increase AI spend over the next 1-2 years, Snowflake claims
- Only one in four have a clear framework to use AI to realize business goals
- “Governance, data and clear accountability” are where they’re lacking
New research from Snowflake has claimed nearly half (45%) of UK organizations have reported small to modest productivity gains from AI tools already, with around a quarter (23%) having achieved these gains at scale.
However, there’s a stark difference between the top and the bottom, and those who fail to get on board are risking being left behind as the entire landscape evolves.
But with only 1% planning to decrease AI spend in the next year to two, money isn’t the issue. Nor is the technology – Snowflake says most of the barriers are coming from within.
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Are companies are to blame for poor AI ROI?
Snowflake’s report explains how poor data quality and organizational silos block strong AI adoption on the tech stack front, while skills shortages and a lack of clear leadership and strategy and holding companies back on the people front.
At the moment, only one in four (24%) use a clear framework to get AI to achieve their business goals, while ethics and safety are shaping how two-thirds of organizations are deploying AI.
These trends aren’t blanket, though, with certain industries facing more challenges than others. Financial services must handle tight regulation and retail is lagging due to data issues.
“Belief alone is not enough,” Principal Data Strategist Jennifer Belissent wrote. “Productivity gains require clear ownership, strong data foundations and alignment between AI initiatives and measurable business objectives.”
Snowflake’s data makes it clear that the technology isn’t so much the issue – execution is where the real challenges lie. The company calls for better data foundations, clear governance from leadership and ongoing worker upskilling.
“Unlocking that potential depends on getting the fundamentals right – governance, data and clear accountability,” Belissent concluded.
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