SoftServe Study: Over 40% of IT Managers believe their leaders don’t give AI enough importance
72% of IT directors in software companies believe that the leaders of their organizations are not fully aware of the technical capabilities of artificial intelligence (AI) and machine learning (ML) and their potential in business, according to a study by SoftServe . In addition, 42% of respondents said that top management is not treating AI and ML investments with sufficient urgency.
When it comes to why investing in AI/ML should move up the list of business leaders’ priorities, 56% of respondents even pointed to the positive impact it could bring from a business perspective. Talent attraction and retention (52%) and competition (49%) were the next two factors cited by respondents.
At the same time, all executives surveyed are convinced that investments in AI/ML are crucial to the success of organizations, even though 97% of those surveyed say that previous AI/ML projects have performed below expectations.
Respondents believe that the top three reasons why previous AI and ML investments have not lived up to expectations are lack of talent or skills (39%), inadequate or insufficient funding (38%), and lack of strategy integration of business (36%).
The study reveals that respondents perceive a strong imbalance between the implementation of these technologies and the business strategy. For example, more than 50% of respondents claim that the pressure to implement these technologies comes from business leaders themselves, and almost a third mention that organizational leadership treats AI/ML as a marketing tool rather than a of business, which can generate revenue and outline the product strategy.
In terms of challenges in adopting AI and machine learning, about 2 in 10 respondents (29%) say their organization is poorly or not at all prepared to manage the data needed to train AI and ML platforms, while that almost all organizations say they need help with AI/ML development especially in the areas of data analysis and integration. In this context, a change in approach and a stronger integration of these technologies into the business strategy becomes crucial for the future success of AI/ML investments.
SoftServe representatives also outlined some critical actions that software companies need to take. These include aligning strategy with execution, understanding the best applications of technology, and focusing on effectively monetizing those technologies to drive revenue growth. Moreover, as the results of the study highlight that investments in AI or ML are below expectations, to ensure the future success of these technologies within software companies, it is necessary for the responsibility to shift from IT to product managers and the validated feedback of customers to be integrated into the product management cycle.
The SoftServe study is based on responses from nearly 600 CIOs and vice presidents of IT, CTOs, development and engineering managers at digital and software companies with at least $100 million in annual business across North America and Europe