Will COVID-19 Bring About the Mass Adoption of AI in the Private Sector?

Salvatore Minetti, CEO, Fountech.Ventures, talks about artificial intelligence (AI) being a buzzword in today’s technology and business landscape, often leaving it shrouded in misconceptions. COVID-19, however, has served to make a clear business case for AI: it has accelerated the necessity for innovative AI solutions and made business leaders more receptive to the potential of automation.

Artificial intelligence (AI) is, no doubt, a buzzword in today’s technology and business landscape. As a result, talk about AI is often shrouded by misconceptions, with these myths often falling at the extremes. Concerns about the potential of AI acting on its own accord and overtaking the human race are not unreasonable. However, when we take into account the hyperbolic depiction of robots and cyborgs in popular sci-fi movies. 

On the other end of the scale, businesses are led to believe that AI is only the reserve of cutting-edge technology companies. After decades of extravagant promises, business leaders worldwide would be forgiven for thinking that the technology is over-hyped or accessible only to the select few in Silicon Valley.

This was, of course, until the outbreak of COVID-19 made a clear business case for AI. With the ongoing public health crisis upending the lives of millions and changing life as we know it, the pandemic has prompted companies to look to solutions that can effectively see them through these challenging times. 

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AI as a Means of Survival 

As the pandemic continues, survival has emerged as the number one reason to invest in new technologies. The global transition to remote working has forced enterprises to take a step back and re-examine their existing processes. Business leaders have to find new ways of maintaining productivity in a largely virtual setting. 

Gartner’s 2020 Hype Cycle for AIOpens a new window offers an insight into how COVID-19 has changed the reliance of businesses on AI in light of these developments. Importantly, the research underscores that a substantial 30% of organizations plan on increasing their investments in AI, despite (or, most likely, as a result of) the economic impact of the pandemic. Indeed, even amid the crisis, only 16% of businesses have temporarily suspended their investments or decreased them (7%).

Given the inherent ability of AI to streamline operations and improve decision-making, it is unsurprising that companies are pursuing technologies that can offer them a lifeline. Whether it has been enabling a newly dispersed workforce to work from home, enlisting the help of chatbots to field an influx of pandemic-related queries, or utilizing machine learning (ML) to model the economic impact of the virus, it is clear that AI has reigned supreme in 2020. 

Has Covid-19 Prompted AI Adoption?

While the pandemic has accelerated the necessity for AI and made businesses more receptive to the potential of automation, it is equally clear that misconceptions surrounding the technology remain rife. Particularly when it comes to the strategic use of AI within businesses, these misunderstandings stand in the way of the widespread adoption of intelligent solutions. This raises the question: how do we dispel the myths?

Research from thinktank Fountech.ai has revealed that a staggering half (50%) of businesses perceive AI technologies to be too expensive to bring any real value to their organization. This opinion is particularly common across SMEs, with only 35% of large organizations (those with over 250 employees) holding the same views. 

Clearly, the hypothetical barriers that inhibit SMEs from implementing AI do not stand for larger businesses; indeed, a third (31%) of large organizations state that they are confident they have the skills needed internally to employ or take advantage of AI. Meanwhile, this figure plummets to just 5% across small businesses: those who employ between 10-49 workers.

Thankfully, the aforementioned research has shown that despite these perceptions, it is not just large enterprises that are exploring how AI can bolster their bottom line and power their post-pandemic recovery. Small businesses, too, have been inspired to shatter the glass ceiling and look farther afield to new technologies.

Of the 430 businesses surveyed, the majority (55%) said they have now begun to explore how AI could improve their product or service. Surprisingly, this figure is, in fact, highest among small (61%) and medium-sized (66%) enterprises. 

Meanwhile, in the coming 12 months, 45% of businesses are looking to implement AI – with large (49%) and medium-sized businesses (57%) leading the charge. 

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Shattering the Glass Ceiling

Although the advantages of adopting AI are evident, there is still much work to be done before it enters the mainstream. With reservations about cost, complexity, and value for money still posing obstacles, it is clear that the AI industry must work hard to convince business leaders questioning the accessibility of their tech. 

Before mass adoption becomes possible, we must first break down the notion that AI is hopelessly complex. After all, today, you don’t need to be an AI expert to integrate the technology into a start-up or scale-up: solutions can be designed and adopted according to individual needs and constraints.  

The barriers to entry have fallen significantly thanks to the democratization of AI-enabled toolsets, with software-as-a-service (SaaS) models, for instance, offering customizable options for users of all sizes and budgets. Companies that are just starting out can also opt for the “plug and play” approach by utilizing service solutions from the likes of Amazon. Such options mean that companies can bypass the requirement of building solutions from scratch and instead rely on the expertise of third-party providers. 

As with any technology, AI should not be implemented for AI’s sake, but because it presents a convincing solution to a unique business challenge. But without a strong grasp of the benefits of AI, senior executives will continue to question its value. Indeed, the fear of the unknown is a huge factor delaying AI adoption. Over half (54%) of the SMEs polled by Fountech.ai say that they have a very limited understanding of artificial intelligence and how it can be used. 

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If widespread adoption occurs within the private sector, we need to showcase why SMEs stand to benefit from the technology. Paradoxically, it is arguably smaller companies that are in a better position to leverage AI solutions. After all, they are generally unencumbered by legacy systems and complex sign-off processes that can make onboarding new technologies more of an annoyance than an opportunity within bureaucratic company structures. 

As an industry, we must help SMEs identify the best use-cases of AI for their businesses and what tools can support their needs. Promoting greater awareness of the advantages AI brings – including, but not limited to, increased competitiveness, operational efficiency, and revenue growth – will serve to guide small businesses as they navigate the COVID-19 crisis. 

For companies that have not yet adopted artificial intelligence at scale or in a core part of their business, we must also be clear on what AI can and cannot do. To prevent perpetuating the hype and avoid the risk of disappointment when toolsets do not meet inflated expectations, business leaders must understand the return they can expect on their investments. 

All in all, the coronavirus crisis has clearly demonstrated the need for AI and provided businesses with the nerve to explore new solutions going forward. And while the pandemic has undoubtedly brought with it swathes of unrest, both economic and otherwise, it might just be the thing that brings about the mass adoption of AI and pushes the digital frontier.

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