Productivity shortfalls prevail with artificial intelligence applications. Investments in new artificial intelligence hardware, systems and processes over the past 48 months have exceeded outlays for enhancing and introducing internal and external resources for the optimal use of that capacity.
Business owners and managers sense and suspect that inadequate and inappropriate internal skills are contributing to sub-optimal performance of AI, and a lack of improvements in productivity, competitiveness and customer service.
The arcane appears appropriate for AI in many Australian businesses. That is, “known and understood by few”. An overwhelming majority of business owners, managers and company directors are aware of the rapidly evolving capacities of AI, and the prospective advantages, benefits and rewards from investment in such.
However, quantifying improvements in outputs have been and currently are limited. Verifying data is situational and tactical, rather than strategic.
A majority of businesses which have invested $10,000 or more in artificial intelligence since January 2020 stated that they had not documented strategic plans, the outlays or specifically defined goals, forecasts and budgets.
CONFLICTED NEEDS AND PRIORITIES
A general consensus among the owners and managers of small to medium-sized enterprises (that is, employing less than 120 people) is that commitments to the introduction of (more) artificial intelligence were in competition with investments in:
BUSINESS NEEDS (IN NOMINATED RANKING)
· Premises presentations.
· Supply-chains.
· Warehouse/fulfilment centres.
· Inventory levels.
· Cash-flow protection/growth.
· Resource (people) allocation.
RESEARCH ANALYSIS
There is overall widespread awareness among the business fraternity of the presence, needs for and advantages of rapidly evolving modes of artificial intelligence.
The pressing, competing needs and priorities, together with contacting capital resources and sensitivities about the costs of doing business are impeding and limiting the introduction of artificial intelligence in business operations.
There is little evidence of verifiable improvements in performance, competitiveness and productivity among peer and associate entities.
Not surprisingly, there is widespread hesitancy in the SME sector about substantial investments in artificial intelligence at this time.
Extensive and intensive education is required to overcome important barriers.
Few managers doubt the potential of AI. Realising that potential is a fundamental issue.
CUSTOMERS FIRST, LAST AND ALWAYS
Not one participating business owner, manager or company involved in a recent study directly declared that their corporate literature, advertising, merchandising and websites detailed the advantages, benefits and rewards which AI provides or promises existing, prospective clients and customers. Opportunities forsaken.
Emphasis on processes and efficiency (Read: AI) tend to provide internal upsides. Conspicuously lacking is the profiling of enticing and compelling outcomes which satisfy and fulfill customer needs, wants and desires. The latter relates to effectiveness.
On balance, it seems artificial intelligence has established prospective or existing efficiencies, but lacks recognition, appreciation and value associated with effectiveness.
ARTIFICIAL INTELLIGENCE
INVESTMENT TEMPLATE
Detailed below are some but not all of the sequential procedures that could reasonably be deemed imperative for the investment decisions related to artificial intelligence:
· Conduct an audit of existing technologies, innovations and artificial intelligence.
· Identify, analyse and prioritise strengths and deficiencies.
· Seek, isolate and evaluate available, evolving and pending complementary artificial intelligence modes.
· Determine internal resources, expertise, training, experience in the deployment of artificial intelligence.
· Investigate available resources from suppliers and external consultants for the formulation, documentation and implementation of artificial intelligence.
· Liaise with suppliers, associates, team-members, clients and customers for the purposes of education in and utilisation of AI enhancement offerings.
· Schedule and conduct periodic revues of performance, productivity and customer satisfaction, seeking to identify possible refinements and enhancements.
· Refine recruitment, induction, training and development procedures to include the integration of AI.
· Integrate the goals, objectives and tactics for artificial intelligence into the company strategic plan.
Structure, discipline, understanding and commitment are imperatives for the effective introduction and deployment of artificial intelligence. As with all things strategic, time and timing are fundamentals and should be respected.
Barry Urquhart
Consumer Behaviourist
Marketing Focus
M: 041 983 5555
E: Urquhart@marketingfocus.net.au