Artificial Intelligence: no longer an expensive gimmick, but a new source of revenues

Artificial Intelligence is no longer an exciting novelty, but it is becoming an increasingly important tool for business striving to gain competitive advantage.

Kiva, the Amazon’s robot or the face recognition function in iPhone X – not to mention client chatbots – are just some of the first examples of how Artificial Intelligence (AI) can be used in practice. It is predicted that AI solutions will soon help drive companies’ profits. Hopes are high – they are to account for as much as 10% of their revenues, depending on the market sector.

Experts from McKinsey Global Institute have just announced the results of a survey conducted in more than 400 companies representing various markets and industries. Despite the growing role of Artificial Intelligence in business, most companies – as many as 95% businesses worldwide – do not implement AI solutions at all. McKinsey’s analysis, however, shows that those organizations that are already experimenting with AI, or are seriously preparing to use its capabilities, will benefit the most.

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The simulation described in “MIT Sloan Management Review” showed that the next 5 years will be crucial in terms of taking advantage of AI. By 2030 the companies that implement AI-based solutions will have doubled their profits, recording an extra 4% increase in gross revenues. All this at the expense of their direct competition which has failed to adopt artificial intelligence tools on such a scale. Globally, the growth will amount to a trillion dollars, which equals 10% of all the profits achieved by the surveyed companies.

According to experts from McKinsey Global Institute, the market sectors with the greatest potential to drive value using AI capabilities are: retail, transport and logistics, travel, health care, packaged consumer goods and the automotive industry.