Companies with optimal Artificial Intelligence (AI) innovation strategies generate greater shareholder value, according to new research by Accenture.
However, Accenture also found that despite these shareholder gains, only one fifth of leading companies that leverage Artificial Intelligence have achieved this performance in recent years. These companies, according to the report, have demonstrated high ‘AIQ’ by combining strong in-house innovation and external collaboration.
The research, however, only placed 17% of companies in the high performing bracket of collaboration and innovation, with a much larger 57% recognised as “Observers” and taking little action to collaborate and innovate in the AI space.
Companies that are collaborative innovators in terms of AI have seen a 4.2% increase in their enterprise value since 2013, with the larger percentage of those included in the observers category gaining only 2.3%.
These findings come from an Accenture report entitled “Boost Your AIQ: Transforming into an AI Business”, which was conducted alongside the G20 Young Entrepreneurs’ Alliance.
Accenture Research has forecast an average enterprise value increase of 90% for organisations that can break out of the “Observer” category, and into the “Collaborative Inventor” position.
The necessary ingredients for gaining this status are outlined in the report and condensed into three main areas.
Technology, data, and people must be integrated according to the report, with companies must making timely moves in enhancing their technology.
Companies must also have sufficient data handling capabilities, and bring a range of skilled people on board.
Paul Daugherty, chief technology and innovation officer, Accenture said: “Artificial intelligence is one of the most powerful technology innovations we have ever seen – transforming the way we work and live… “Many companies are ready to go beyond the experimental phase of AI, leveraging it to improve productivity and create entirely new revenue opportunities. To become a high performer, they will need to both develop their own technology, data and people capabilities as well as become deeply involved in the broader AI ecosystem.”
Daugherty makes clear that now is the time to begin looking towards the full potential of AI within the enterprise, but he also outlines what must be taken on board in the process.
Francis Hintermann, global managing director, Accenture Research said: “Success in AI cannot happen in isolation… Our analysis shows that creating AI innovations requires incumbents to open up their technology, data and talent to work with specialist startups and entrepreneurs. That requires them to transform their innovation strategies and organizational cultures.”