Recent research conducted by Digitate has uncovered significant insights into the state of AI and automation implementation among European organisations. According to a survey involving 900 IT decision-makers from various enterprises across Europe, a remarkable 92 percent have integrated AI and automation into their operations. However, the study reveals that many of these organisations are not taking a holistic or strategic approach to fully leverage the potential of these technologies.
The findings indicate that European enterprises have invested an average of €103.4 million ($108 million) in AI and automation over the past two years, with over half (59 percent) spending up to €295 million ($309 million). The investment has led to substantial returns, as 86 percent of the surveyed organisations reported an average return on investment (ROI) of €154.7 million ($162.4 million).
When comparing the UK with other European nations, it emerges that UK enterprises are trailing behind in terms of AI and automation investments and cloud adoption. A notable 34 percent of respondents indicated plans to migrate to the cloud for the first time within the next two years. In contrast, the UK has managed to achieve a more significant ROI of 50 percent, while Finland, which tops the investment charts, recorded only a 10 percent ROI.
Debasish Pattnaik, General Manager for the UK at Digitate, commented on the findings, stating, "European enterprises recognise the transformative potential of AI and automation, particularly in addressing their most pressing operational challenges." He further highlighted that the research suggests many organisations are engaging with these technologies on a departmental level instead of formulating a comprehensive, integrated strategy. Pattnaik urged that there is a pressing need for enterprises to develop more unified approaches to maximize the value derived from these significant investments.
The survey also reveals that 86 percent of organisations are implementing generative AI alongside their AI and automation initiatives. Specifically within the UK, 87 percent of organisations are focusing their automation efforts on IT, with 83 percent employing AI to enhance IT operations.
However, the path toward successful AI and automation implementation is not without its obstacles. An overwhelming 94 percent of businesses reported experiencing challenges from their AI or automation initiatives. Common concerns include suboptimal outcomes from priority use cases; for instance, while 40 percent of organisations have deployed AI for customer support, a superior customer experience is not frequently cited as a key benefit of such initiatives.
Financial constraints and a lack of technical skills are significant barriers to effective AI implementation, both identified by 29 percent of respondents as critical obstacles.
The findings of this study shed light on the current landscape of AI and automation deployment in Europe, highlighting both the potential for substantial returns on investment and the existing challenges that enterprises must navigate to realise the full benefits of their technological investments. For more information, further insights on the research can be accessed on the Digitate website.
Source: Noah Wire Services