- Almost all companies will maintain or increase their spending on AI over the next 1-2 years, says Snowflake.
- Only one in four people have a clear framework for using AI to achieve their business goals.
- “Governance, data and clear accountability” are where they are lacking
New research from Snowflake reveals that almost half (45%) of UK organizations have already reported small to modest productivity gains from AI tools, and around a quarter (23%) have achieved these gains at scale.
However, there is a stark difference between the top and the bottom, and those who fail to get involved risk being left behind as the landscape evolves.
But with only 1% planning to cut their AI spending to two in the next year, money isn’t the issue. Neither does technology – Snowflake says most of the obstacles come from within.
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Are companies to blame for the low ROI of AI?
Snowflake’s report explains how poor data quality and organizational silos are blocking strong adoption of AI on the front of the tech stack, while skills shortages and a lack of clear leadership and strategy are holding companies back on the human resources front.
Currently, only one in four (24%) use a clear framework to enable AI to achieve their business goals, while ethics and security determine how two-thirds of organizations deploy AI.
These trends are not universal, however, with some sectors facing more challenges than others. Financial services face strict regulation and retail is lagging behind due to data issues.
“Belief alone is not enough,” wrote Jennifer Belisent, senior data strategist. “Productivity gains require clear ownership, robust data foundations, and alignment between AI initiatives and measurable business goals. »
Snowflake’s data clearly shows that technology isn’t really the problem: it’s execution that is the real challenge. The company is calling for better databases, clear governance from management and continuous improvement of worker skills.
“Realizing this potential depends on having the right fundamentals in place: governance, data and clear accountability,” concluded Belisent.
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