Hype and “AI Washing” Is Creating Confusion, Obscuring the Real Benefits of the Technology
Market hype and growing interest in artificial intelligence (AI) are pushing established software vendors to introduce AI into their product strategy, creating considerable confusion in the process, according to Gartner, Inc. Analysts predict that by 2020, AI technologies will be virtually pervasive in almost every new software product and service.
In January 2016, the term “artificial intelligence” was not in the top 100 search terms on gartner.com. By May 2017, the term ranked at No. 7, indicating the popularity of the topic and interest from Gartner clients in understanding how AI can and should be used as part of their digital business strategy. Gartner predicts that by 2020, AI will be a top five investment priority for more than 30 percent of CIOs.
“As AI accelerates up the Hype Cycle, many software providers are looking to stake their claim in the biggest gold rush in recent years,” said Jim Hare, research vice president at Gartner. “AI offers exciting possibilities, but unfortunately, most vendors are focused on the goal of simply building and marketing an AI-based product rather than first identifying needs, potential uses and the business value to customers.”
AI refers to systems that change behaviors without being explicitly programmed, based on data collected, usage analysis and other observations. While there is a widely held fear that AI will replace humans, the reality is that today’s AI and machine learning technologies can and do greatly augment human capabilities. Machines can actually do some things better and faster than humans, once trained; the combination of machines and humans can accomplish more together than separately.
To successfully exploit the AI opportunity, technology providers need to understand how to respond to three key issues:
- Lack of differentiation is creating confusion and delaying purchase decisions
- Proven, less complex machine-learning capabilities can address many end-user needs
- Organizations lack the skills to evaluate, build and deploy AI solutions
The survey found organizations are currently seeking AI solutions that can improve decision making and process automation. If they had a choice, most organizations would prefer to buy embedded or packaged AI solutions rather than trying to build a custom solution.
“Software vendors need to focus on offering solutions to business problems rather than just cutting-edge technology,” said Mr. Hare. “Highlight how your AI solution helps address the skills shortage and how it can deliver value faster than trying to build a custom AI solution in-house.”
