Many companies are still not seeing significant impact from their AI efforts. Some experts say this may be because they’re not embracing something called “organizational learning.”
It’s not enough to use AI to optimize a business process — for example, to make better predictions or automate a manual task. Enterprises need to go one step further, to take lessons learned from their AI projects and use them to transform their organizations. Businesses have seen success when they started to automate marketing tasks.
While most, if not all, organizations would say they learn from their successes and their failures, few have formal processes to embrace these learnings and promulgate them throughout the enterprise — especially when it comes to the use of AI. As a result, only 11% percent of companies saw significant benefits from their AI initiatives in 2020, according to a recent report from MIT Sloan Management Review conducted in collaboration with Boston Consulting Group.
Take, for example, scoring loan applications, much of which involves tedious data entry done manually by loan officers. Using AI or machine learning can dramatically optimize the process, reducing costs and the need for as many loan officers on staff. But enterprises can only save so much money, and employees are reluctant to get behind projects that could cost them their jobs.