Despite global leadership in AI, respondents from the UK and USA were least optimistic about realizing benefits quickly from AI Norway ranks most optimistic about AI Future Countries that have invested in AI skills are more optimistic about AI Organizations that are architecturally-ready and have strong sustainability planning found to correlate with AI optimism
LONDON, July 11, 2024 /PRNewswire/ — Research from IFS, the leading technology provider of enterprise cloud and industrial AI software, has revealed the Global AI Optimism League Table. The global study Industrial AI: the new frontier for productivity, innovation and competition involved 1,700 senior decision makers from Manufacturing, Telecommunications, Aerospace & Defense, Services, Construction & Engineering, and Energy & Resources companies. It found that optimism about artificial intelligence (AI) is a direct indicator of AI strategy maturity within their business. The study found firms between $200-$500m the most optimistic about AI, while the UK and USA were the least optimistic countries.
The IFS Global AI Optimism League Table by Country
Country
Optimism Rank
Norway
1
Sweden
2
France
3
Australia
4
Japan
5
UAE
6
Canada
7
Denmark
8
Finland
9
Germany
10
UK
11
USA
12
The IFS Global AI Optimism League Table by Company Size
Revenue Band
Optimism Rank
$300 Million – $499.99
Million
1
$200 Million – $299.99
Million
2
$500 Million or over
3
$100 Million – $199.99
Million
4
$50 Million – $99.99
Million
5
Cash isn’t always king
An easy assumption to make with AI is that the more financial resources available, the more optimism there would be about what could be done with AI. However, the research reveals that businesses with revenues of over $500 Million ranked only third in terms of optimism due to a clear polarization in strategy, data readiness, and skills. Indeed, the polarization in AI readiness has led to 25% of this group believing AI benefits will materialize within 12 months, while the laggards don’t expect to see benefits for at least three years. Large enterprises showed the widest gaps in time to benefits of any of the company size groups surveyed.
In contrast, the survey revealed mid-sized ($50-$200m) firms being less optimistic about AI purely because they have fewer resources and skills to deploy to the technology today, and therefore are planning over a longer period of time to drive benefits from a maturing technology.
Christian Pedersen, Chief Product Officer, IFS, commented: "At the surface level, the lack of optimism across some respondents may suggest we are at the edge of a trough of disillusionment, particularly following the all-encompassing hype that AI enjoyed for much of the last 18 months. What we are actually witnessing is enterprises differentiating themselves with AI. Organizations that have established a strong data foundation, invested in skills, and embedded sustainability into their strategy are optimistic because they can see the benefits coming into view quickly. It is vital that leaders see AI as a strategy, not a tool."
Factors paving the way on the smooth path to AI
Delving into what fuels optimism around AI, the research suggests that companies’ architectural readiness directly correlates with their overall optimism about the technology. Respondents who report being more architecturally ready are more likely to be optimistic about AI. This indicates that companies with a strong cloud-based foundation are further along in their AI journeys and are most likely to believe that the tangible benefits of AI will become a reality sooner.
Pedersen continued: "We see direct evidence from our research that the market is splitting into those who have embraced AI and those who have not. There is an element of ‘following the herd’ fueling the board’s desire for AI programs. McKinsey has found that AI could be the key to unlocking an additional $4.4 trillion in corporate profits per year, which is building pressure to adopt it. Without a clear direction and strategy, AI programs stall, making the end result seem further away than it needs to be."
Emergence of Industrial AI for productivity, innovation and sustainability
Innovative products and services (31%) and data accessibility (30%) are the most common areas senior decision-makers expect AI to make large differences, followed closely by cost reductions (29%). Interestingly, at a country level, the USA (32%) and Germany (31%) were the only nations most likely to believe that AI will lead to consistent business growth.
The survey reveals a positive correlation between skills and AI optimism. The nations most likely to identify as having invested heavily in skills for several years are generally more optimistic about AI overall. France (49%), UAE (53%), Norway (48%), Australia (46%), Sweden (46%) and Japan (45%) are leading the way here.
Sustainability planning also correlates directly with overall AI optimism. The less wide-ranging a country’s sustainability strategy was with regard to AI, the less likely they were to be optimistic about AI in general. UK (5%), Canadian (6%), Danish (6%) and Finnish (4%) respondents were least likely to have an AI strategy for sustainability in place and all feature in the bottom half of the optimism league table.
"The lofty expectations for AI bely a fundamental misunderstanding of how it is supposed to drive value. The real power lies in Industrial AI, where data flows through every part of your business, combining structured, interlinked datasets to uncover insights, optimize every process and marry the digital with the physical world. That’s where the true value lies. If a business doesn’t have a strategy to reach that point, then they need a partner who can guide them on that journey," concluded Pedersen.
Discover more insights and actions in the Industrial AI: the new frontier for productivity, innovation and competition Executive Report.
Research Methodology:
Censuswide surveyed 1,709 C-level/President/SVP/Directors who work in Manufacturing, Telecommunications, A&D, Services, Construction & Engineering or Energy & resources in organizations with $50m+ annual revenue (Aged 18+) across the UK, USA, Canada, Germany, France, UAE, Norway, Japan, Australia, Sweden, Denmark and Finland.
About IFS:
IFS develops and delivers cloud enterprise software for companies around the world who manufacture and distribute goods, build and maintain assets, and manage service-focused operations. Within our single platform, our industry specific products are innately connected to a single data model and use embedded digital innovation so that our customers can be their best when it really matters to their customers — at the Moment of Service™. The industry expertise of our people and of our growing ecosystem, together with a commitment to deliver value at every single step, has made IFS a recognized leader and the most recommended supplier in our sector. Our team of over 6,000 employees every day live our values of agility, trustworthiness and collaboration in how we support our 6,500+ customers. Learn more about how our enterprise software solutions can help your business today at ifs.com.
IFS Recognition
IFS ranked #1 for EAM market share in the Gartner® Market Share: All Software Markets, Worldwide, 2023 report for third consecutive year Gartner® Peer Insights Customers’ Choice 2023 – Cloud ERP IFS named a leader in IDC MarketScape: Worldwide Field Service Management Solutions 2023-2024 Top 100 Companies (3rd), The Software Report, 2023
IFS Press Contacts:
EMEA & APJ: Adam Gillbe
Corporate Communications
Email: [email protected]
Phone: +44 7775 114 856
USA: Mairi Morgan
Corporate Communications
Email: [email protected]
Phone: +44 7918 607 299
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