The Shocking Costs of AI: Are Businesses Getting Cold Feet?

AI is progressing in leaps and bounds….but do business leaders think it is worth the cost to use?

AI Implementation Hesitation

Despite the long-term benefits of generative AI, many organisations remain hesitant to adopt these technologies due to concerns over accuracy, high costs, and integration complexities, according to Tata Consultancy Services (TCS) (Financial Express). Krishna Mohan, vice president & deputy head of TCS’s AI.Cloud Unit, emphasised that these technologies are still evolving and may not yet deliver the expected return on investment, potentially disrupting existing workflows without sufficient benefits.

Revenue and Cost Efficiency

A TCS study revealed that only 19% of CEOs have reliable metrics for their AI deployment stage, yet 86% believe AI can significantly boost revenue. AI is particularly effective in areas like predictive analytics for customer behaviour, supply chain optimization, and drug discovery. Additionally, AI-powered chatbots and virtual assistants are enhancing customer service by improving response times and satisfaction.

Cloud Adoption Driven by GenAI

Generative AI’s ability to process vast data sets, including unstructured data, is driving increased cloud adoption among businesses. Mohan highlighted that the interconnected nature of AI models and the ease of accessing data in the cloud make it a critical technology for AI implementation.

(Visit Financial Express for the full story)

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