Recent reports - including a more recent one from Gartner - highlight that despite the growing adoption of Artificial Intelligence (AI), particularly generative AI, many businesses remain hesitant to invest and integrate the tech into their organisation.

The reason? Well, many prioritise a clear return on investment (ROI) when making technology decisions.

Based on a survey of 644 respondents from organisations in the U.S., Germany and the U.K., Gartner reports that 49% of those surveyed cite ROI generation as the primary barrier to AI implementation.

But, is this focus on immediate returns hindering organisations from embracing a technology poised to fundamentally transform the business landscape?

In short, I believe it is, and here’s why.

The ‘Innovation Tax’ of Early Adoption

Early adopters of any technology face an ‘innovation tax’. It’s a trade-off – you gain a competitive advantage but navigate higher costs and potential risks inherent in pioneering new territory. This explains the buyer’s remorse some businesses are experiencing. However, AI has reached a critical juncture. OpenAI’s democratisation of the technology, reducing infrastructure requirements, has fuelled a boom in adoption. Additionally, as processing power becomes cheaper and AI capabilities advance, the technology will become even more accessible and efficient.

Shifting the Focus: Beyond Short-Term ROI

The key for businesses lies in managing expectations. AI is a long-term play. While ROI is important, it shouldn’t overshadow the bigger picture. Consider an alternative metric: Return on Reducing Risk (RORR). As AI becomes ubiquitous, it will likely be a cost of doing business, essential for maintaining competitiveness. Early adoption offers an opportunity to mitigate risk and pre-empt challenges before they arise.

Mitigating Risk and Maximising Value with a Strategic Approach

AI is a powerful tool. In the hands of the misinformed, it can cause great risk and damage to hard-fought reputations. However, there are steps you should be taking to mitigate the risk of AI implementation and maximise its potential value:

• Identify Your AI Needs: Focus on internal efficiency and quality improvements, or customer engagement and experience enhancements.

• Data is King: Assess your data quality. Poor data leads to inaccurate outputs – bad insights, subpar decision-making, and suboptimal customer interactions.

• Vendor Due Diligence: Understand a vendor’s suitability, privacy controls, integration options, and operational costs.

• Cost-Benefit Analysis with a Long-Term Vision: When conducting a cost-benefit analysis, consider the long-term benefits rather than just short-term returns.

• Pilot Programmes & Proof of Concept: Pilot programmes and proof-of-concept builds offer practical insights before large-scale investments.

Learning from the Past: AI is a Transformation, not a Fad

Let’s draw a parallel. The early days of the internet also witnessed similar hype cycles. While some experienced challenges, companies that adopted a strategic approach reaped significant long-term rewards. Today, the Internet is an indispensable business tool. Can you really think of any ‘serious’ business that doesn’t have a webpage? AI is likely to follow a similar, and to some extent, even bigger trajectory. Buyer’s remorse can be avoided by carefully assessing your organisation’s needs, evaluating your data, and starting with controlled pilot programmes.

UK Businesses: Don’t Get Left Behind

The UK business landscape thrives on innovation. After all, we’re a major Global and European hub for tech investment, based on our innate ability to use tech to solve sophisticated/multilayered challenges. By taking a strategic approach to AI investment, UK businesses can mitigate risk, position themselves for the AI-driven future, and unlock genuine business value.

At CreateFuture, we specialise in helping businesses navigate this new frontier in tech. Our workforce of AI ‘power users’ support businesses to achieve much more with less, whilst always prioritising ethics, safety, and security. They can guide you through the entire ‘AI journey’, by supporting you to identify your needs right through to implementing a successful AI strategy tailored to your organisation. As your trusted digital consultancy, we can help you turn AI from a potential pitfall into a springboard for success. Let’s start putting AI to work for your growth potential. Today.

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