Unmasking the AI Hype: The Gradual Adoption of Artificial Intelligence in Businesses

by | Dec 4, 2023

In today’s tech-driven world, businesses are interested in artificial intelligence (AI). However, the practical use of AI is not as widespread as expected. Only a small fraction of companies are actually using AI to create goods or services.

Recent data shows that despite major American corporations promoting AI, only 4.4% of businesses nationwide are actively using it. The main obstacles are the high costs and limited knowledge about AI tools, making them inaccessible to many organizations.

One of the main challenges businesses face when adopting AI is the need for education, skilled personnel, and funding. Currently, early adopters of AI are concentrated in cities where these resources are more available. But efforts must be made to make AI accessible to all industries and regions.

Despite the slow adoption rate, there are signs of progress. For example, Walmart is experimenting with AI-powered search and chat features to improve customer experiences and operations. This trend is seen in many companies listed in the S&P 500, with almost half mentioning AI during their earnings calls since May.

AI is not limited to large corporations. Bath & Body Works is piloting a machine-learning tool to win back inactive customers. By using AI, the company aims to personalize marketing and reconnect with its customers.

While AI has received a lot of attention, businesses are more likely to use applications built on AI rather than directly working with the technology itself. This allows companies to benefit from AI without the complexities and investments of developing AI models internally.

Recognizing the potential of AI, Salesforce has launched a $500 million generative AI fund to invest in businesses developing AI models. This shows the growing interest in incorporating AI into long-term growth strategies.

Interest in AI increased after OpenAI introduced ChatGPT, an advanced language model, in November 2022. This breakthrough highlighted the power of AI in natural language processing and caught the attention of businesses.

Experts predict a significant increase in AI adoption in the next five to ten years, with over 75% of businesses utilizing AI. Salesforce’s CEO believes his company is leading customers into “the new AI era.”

However, there are concerns about certain groups being left behind as AI tools are expensive and require specialized knowledge. Efforts must be made to provide affordable access to AI tools and share knowledge across all sectors.

In conclusion, the actual adoption of AI in businesses is more cautious than the initial hype. Although large American companies promote AI, its implementation remains limited. Nevertheless, progress has been made with companies like Walmart and Bath & Body Works using AI to improve their operations and customer experiences. As education, talent, and funding become more accessible, AI adoption is expected to grow and transform industries in the future.