{"id":17139,"date":"2019-10-01T09:00:23","date_gmt":"2019-10-01T09:00:23","guid":{"rendered":"https:\/\/www.microsoft.com\/en-gb\/industry\/blog\/?p=17139"},"modified":"2020-01-08T13:51:51","modified_gmt":"2020-01-08T12:51:51","slug":"ai-report-uk-growth","status":"publish","type":"post","link":"https:\/\/www.microsoft.com\/en-gb\/industry\/blog\/cross-industry\/2019\/10\/01\/ai-report-uk-growth\/","title":{"rendered":"AI-driven businesses surge ahead of competition"},"content":{"rendered":"

The business value of AI is clear: it helps organisations operate efficiently, perform better, achieve more, and gain the insights required to make better business decisions.<\/p>\n

However, while organisations are beginning to turbo-charge their AI efforts, not everyone is taking advantage of the technology. As a result, they\u2019re handing success to their rivals.<\/p>\n

This is one of the many significant findings revealed in Microsoft\u2019s AI research report, \u2018Accelerating Competitive Advantage with AI<\/u><\/a>\u2019, launched today at our flagship event Future Decoded. The report takes an in-depth look at AI\u2019s potential to be a catalyst for business growth in the UK and provides practical steps to help organisations accelerate their AI journey.<\/p>\n

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Consideration vs. action<\/h2>\n

Our 2018 report \u2018Maximising the AI Opportunity<\/u><\/a>\u2019, which collated the views of business leaders policymakers, and industry experts across every sector, revealed two fascinating insights. On the one hand, businesses understood the power of AI; on the other, many were locked in a constant cycle of assessment over implementation.<\/p>\n

This year, we\u2019re beginning to see that gap between consideration and action dramatically close. Executives realise the value and benefits of an AI-led digital transformation \u2013 improving experiences for both employees and customers, driving productivity, and, perhaps most important in these tumultuous times, giving them the competitive advantage.<\/p>\n

As such, we\u2019ve seen an incredible performance jump for businesses already engaged with scaling their AI. Last year, AI-driven businesses performed on average 5% better than their rivals. Today, that figure sits at 11.5%.<\/p>\n

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Last year, AI-driven businesses performed on average 5% better than their rivals. Today, that figure sits at 11.5%.<\/p>\n<\/blockquote>\n

Despite this, many organisations remain locked in the exploration stage or aren’t doing anything at all. Our research shows that 48% of companies are still experimenting with AI; 34% aren’t using the technology at all. Just 8% of companies can be classed as \u2018Advanced AI users\u2019.<\/p>\n

This puts companies at a huge disadvantage. Evidence shows that organisations already on the path to AI enablement are better equipped to adopt the technology more efficiently elsewhere in the business. In comparison, organisations that are new to AI are not experiencing the same speed of progress as those that are already on the journey.<\/p>\n

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Outpacing the competition<\/h2>\n

In many ways, the lack of action in introducing AI mirrors the start of the internet revolution of the 1990s, which saw countless businesses suffer because they didn\u2019t have an online presence. Today, it\u2019s unthinkable that a company wouldn\u2019t have a website. In the coming years, we shall think the same about AI. It\u2019s fast becoming essential for every organisation in every industry and sector.<\/p>\n

At the same time, we\u2019re witnessing a serious desire for innovation. Our report shows 38% of those surveyed want to pioneer AI technologies and applications in new ways. After all, if they don\u2019t take the lead now, other organisations will. Robbie Stamp, Chief Executive Officer of BIOSS, explains:<\/p>\n

\u201cThere is an element of organisations looking over their shoulders and fearing they are missing out on something that will provide a massive competitive advantage \u2013 that if they are not engaged in AI, they are going to lose.\u201d<\/p>\n

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More work to do<\/h2>\n

The global AI market is rapidly expanding. By 2030, it’s set to be worth $15.7 trillion, according to PWC\u2019s study \u2018Exploiting the AI Revolution<\/u><\/a>\u2019. Little wonder, then, that the UK government has committed to investing \u00a3115 million in graduate-level AI training.<\/p>\n

Despite this breakthrough, there is still more work to be done in AI implementation. For those not yet riding the wave, it\u2019s imperative to introduce the right technologies and applications or risk being overtaken by their more progressive counterparts. Our research, however, shows this goes beyond technology, and into the realms of company culture. In the companies we surveyed, we uncovered three core areas where implementation is focused:<\/p>\n