70 Percent of AI Projects Deployed by Digital Commerce Businesses Turn-out to be Successful, Reveals Gartner's Recent Survey
With the inter-industry competition increasing sharply with each passing day, businesses are forced to cut-down their operational costs by automating their processes by using technologies like Artificial Intelligence, Machine Learning, IoT, and Robotic Process Automation, with AI topping the checklist in most boardroom meetings. Gartner, the global leader in offering research and advisory services, recently conducted a survey to ascertain the success rate of AI projects in Digital Commerce companies. As per the survey, 70 percent of AI projects in Digital Commerce witness exceptional success rate.
“Digital commerce is fertile ground for AI technologies, thanks to an abundance of multidimensional data in both customer-facing and back-office operations. Organizations looking to implement AI in digital commerce need to start simple,” says Sandy Shen, Research Director, Gartner.
Participants to this global survey were 307 representatives (each involved in strategic decisions for digital commerce within their organization) from digital commerce organizations from U.S., Canada, Brazil, France, Germany, UK, Australia, New Zealand, India and China that have already implemented AI, or are running pilot projects to better understand the benefits of implementing AI in digital commerce.
75 percent of the respondents revealed that they are witnessing double-digit improvements in outcomes they measure, with the three most common metrics that determine business impact – customer satisfaction, revenue, and cost reduction seeing improvements of 19, 15 and 15 percent, respectively. Additionally, Gartner also predicts that by 2020, AI will be used by minimum 60 percent of digital commerce organizations and 30 percent of digital commerce revenue growth will be attributable to AI technologies.
The survey also found a wide range of applications for AI in digital commerce, with the top three uses being Customer segmentation, Product categorization, and Fraud detection. Additional findings of the survey indicate that lack of quality training data (29 percent) and in-house skills (27 percent) as the top challenges in deploying AI in digital commerce. Also, 43 percent respondents said that they chose to custom-build solutions developed in-house or by a service provider, while 63 percent of the organizations said that they were leveraging a commercial AI solution.
“Many have high expectations for AI and set multiple business objectives for a single project, making it too complex to deliver high performance. Many also run AI projects for more than 12 months, meaning they are unable to quickly apply lessons learned from one project to another,” adds Sandy.
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