measuring the impact of ai - tcs global trend study

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Four factors are most important in determining whether companies benefit from AI AI’s impact goes far beyond the IT function AI’s the companies say AI is necessary to remaining competitive $73 mn EUROPE $55 mn ASIA PACIFIC $80 mn NORTH AMERICA $51 mn LATIN AMERICA Key Findings Companies with the greatest revenue and cost improvements in 2015 from their AI initiatives outspent those with the smallest improvements by a factor of five MEASURING THE IMPACT OF AI TCS Global Trend Study Make far bigger AI investments to remain competitive Corporate Center Leaders Followers Distribution and Logistics Human Resources Finance and Accounting 31% 12% 20% 6% 20% 35% 22% 12% Please visit http://www.tcs.com/artificialintelligence @TCS #EnterpriseAI 62% Use AI across organizational functions use the technology in customer service 32% use AI to support the sales function 29% use AI in marketing 29% use AI in finance and accounting 27% use AI in R&D 23% average gain in new AI jobs in North America 8% of those using AI in finance and accounting use it for customer credit checks 60% of those using AI at corporate level use it to address potential customer payment problems 83% of those using AI in IT use it to ward off hackers 69% of those using AI in R&D use it to create smarter products 67% using AI in marketing use it to improve media buying 83% leaders feel it’s important to address layoff fears 72% Make systems secure against hacking Develop systems that continually learn Develop systems that make safe and reliable decisions Get employees and managers to trust AI advice average gain in new AI jobs in Europe 10% Automate mundane or manual tasks Help employees work better Create new jobs, some performed by AI and others by people with new skills By 2020 84% companies think AI is essential, and nearly half see it as transformative , ive a Average AI investments per company are highest in North America and Europe mpan nd E Av are Only a few are making bold investments today, which may trigger a competitive imbalance tomorrow row w Revenue Cost AI is helping employees do better work, and companies do work they couldn’t do before AI is predicted to both automate and create new jobs Ensure IT does not suffer from the cobbler’s children syndrome Address fears of job losses Implement AI in areas that directly affect the topline Five key characteristics define companies with the biggest AI gains believe IT will benefit most from AI by 2020 40% $157 mn Leaders $18 mn Followers Average 2015 spend per company Based on a survey of 835 executives in companies with average revenue of $20 billion from 13 global industries, across four regions of the world

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Page 1: Measuring the Impact of AI - TCS Global Trend Study

Four factors are most important in determining whether companies bene�t from AI

AI’s impact goes far beyond the IT function AI’s impact goes far beyond the IT function AI’s impact goes far beyond the IT function

companies say AI is necessaryto remaining competitive

$73 mnEUROPE

$55 mnASIA PACIFIC

$80 mnNORTH AMERICA

$51 mnLATIN AMERICA

Key Findings

Companies with the greatest revenue and cost improvements in 2015 from their AI initiatives outspent those with the smallest improvements by a factor of �ve

MEASURING THE IMPACT OF AI TCS Global Trend Study

Make far bigger AI investments to remain competitive

Corporate Center

LeadersFollowers

Distribution and Logistics

Human Resources

Finance and Accounting

31%12%

20%6%

20%

35%22%

12%

Please visit http://www.tcs.com/arti�cialintelligence @TCS #EnterpriseAI

62%

Use AI across organizational functions

use the technology in customer service32% use AI to support

the sales function29% use AI in marketing29%

use AI in �nance and accounting27% use AI in

R&D23%

average gain in new AI jobs in North America

8%

of those using AI in �nance and

accounting use it for customer credit checks

60%of those using AI at corporate level use

it to address potential customer payment problems

83%of those using AI in IT use it to ward o�

hackers

69% of those using AI in R&D use it to create

smarter products

67% using AI in

marketing use it to improve media

buying

83%

leaders feel it’s important to address layo� fears 72%

Make systemssecure againsthacking

Develop systemsthat continuallylearn

Develop systemsthat make safe andreliable decisions

Get employees and managers to trust AI advice

average gain in new AI jobs in Europe

10%

Automate mundane or manual tasks

Help employees work better

Create new jobs, some performed by AI and others by people with new skills

By2020

Key Key

84% companies think AI is essential,and nearly half see it as transformative84% companies think AI is essential,and nearly half see it as transformative84% companies think AI is essential,and nearly half see it as transformative

Average AI investments per company are highest in North America and EuropeAverage AI investments per company are highest in North America and EuropeAverage AI investments per company Average AI investments per company are highest in North America and EuropeAverage AI investments per company are highest in North America and Europe

Only a few are making bold investments today,which may trigger a competitive imbalance tomorrow which may trigger a competitive imbalance tomorrow Only a few are making bold investments today,which may trigger a competitive imbalance tomorrow

RevenueCost

AI is helping employees do better work,and companies do work they couldn’t do before

AI is predicted to both automate and create new jobs

Ensure IT does not su�er from the cobbler’s children syndromeAddress fears of job losses

Implement AI in areas that directly a�ect the topline

Five key characteristics de�necompanies with the biggest AI gains

believe IT will bene�t most from AI by 202040%

$157 mnLeaders

$18 mnFollowers

Average

2015spend per company

Based on a survey of 835 executives in companies with average revenueof $20 billion from 13 global industries, across four regions of the world