86% of Execs Already Deploy AI to Enhance Revenue, says TCS

A study conducted by Tata Consultancy Services (TCS) finds that the majority of senior business leaders already deploy AI to develop revenue streams

Global IT services company TCS reveals more than eight out of ten (86%) business leaders have already deployed AI to serve their businesses. 

In order to create new or enhance existing revenue streams, the TCS AI for Business Study offers a comprehensive report on the current state of AI adoption and its impact on businesses worldwide. The study also finds that 69% of businesses are currently using AI to drive innovation, rather than focusing on productivity improvement and cost optimisation.

Last year (2023) AI adoption use cases surged, with organisations around the world looking for ways to incorporate generative AI (Gen AI) in particular into their technology strategies. Now, TCS sees the business landscape entering into an era of deep AI adoption, which means confronting the challenges of AI head on.

“Enterprises are realising that the path to production for AI solutions is not easy, and that building an AI-mature enterprise is a marathon, not a sprint,” comments Dr Harrick Vin, Chief Technology Officer at TCS. “Our AI study has confirmed this sentiment; it has also highlighted that enterprises feel underprepared to deploy AI solutions at scale as well as to manage the profound shifts in the roles of people and ways of working resulting from such deployments.”

A successful AI strategy augments human capabilities

Executives surveyed by TCS are generally positive about the impact of AI. According to TCS, 57% of respondents reported feeling optimistic about the impact of the technology on businesses. Nearly half (45%) also expect that their employees will need to use Gen AI capabilities to do their job in three years time.

Likewise, most (65%) believe AI will augment and enhance human capabilities, something that is becoming more important for businesses to focus on as the technology grows. Enabling human workforces to focus on more complex tasks at work that require greater creativity will be crucial as businesses continue to adopt AI.

In fact, HSBC recently found that the majority of organisations still consider humans and human skills a significant part of advancing technology within the workplace. It highlights how, with AI as an assistant, greater innovation could be achieved. 

Sivaraman Ganesan, Head, AI.Cloud Business Unit, TCS, said, “When calibrated for accuracy and harnessed responsibly, Gen AI makes the computational power of the data, cloud, and AI come alive. Add in human ingenuity and organisations can create a new paradigm for the modern marketplace.”

Challenges remain: Businesses must prioritise AI metrics

Despite such progress, TCS finds that business leaders are less certain about how their organisation will transform. Currently, only 4% of respondents harness AI in a way that has transformed their business, with nearly a quarter (24%) who haven’t moved beyond the initial exploratory phase. 

The company finds that top barriers to success are cited as current corporate IT infrastructures and customer expectations.

Key facts
  • Executives believe the impact of AI will be greater than or equal to that of the internet (54%) and smartphones (59%)
  • 65% of senior executives say their competitive advantage will still come from humans — with their creativity, intuition, and strategic thinking unleashed by AI's augment and assist capabilities
  • 40% of executives say that in the future they have a lot of changes to make to their business before they can take full advantage of AI
  • 81% of executives highlight the need for global AI standards and regulations
  • Nearly two-thirds of BFSI (64%) and manufacturing (63%) industry executives surveyed say they are excited or optimistic about the impact of AI on businesses

Organisations are also recognising the need to move beyond existing metrics to measure the success of AI within their business. However, 72% of respondents to the TCS survey state they do not have the right metrics, highlighting a need for business leaders to take a strategic approach to AI adoption and develop the right performance indicators to measure the technology’s full impact.

With AI continuing to develop at such a fast pace, a clear and forward-thinking strategy is what sets an innovative organisation apart.

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