In 2023, AI emerged as the buzzword of the year, with 152 S&P 500 companies referencing it during third-quarter investor calls, according to FactSet data. However, a recent IFS study titled “Delivering on the Promise of Industrial AI” has revealed a significant mismatch between corporate AI readiness and expectations.
While AI has become a buzzword synonymous with innovation and growth, the reality is that most organisations are grappling with outdated systems and a lack of strategic vision that hinder AI adoption.
The IFS study surveyed 1,700 C-level executives, revealing that 84% believe AI can address and resolve the ongoing organizational issue of technical debt. Despite these high hopes, 36% of respondents identified legacy technology as the biggest barrier to AI adoption. While companies have lofty expectations for AI’s capabilities, 80% lack a strategic approach, viewing AI primarily as a tool for operational enhancement rather than as part of a broader strategic initiative. This misalignment often leads to a disconnect between available AI solutions and actual operational needs.
To bridge the gap between expectations and readiness, the IFS study offers several recommendations. Aligning AI strategies with overall corporate objectives is crucial to ensure that AI projects contribute to the organisation’s strategic goals.
Christian Pedersen, Chief Product Officer at IFS, highlighted the issue in an article, stating, “The lofty expectations for AI belie a fundamental misunderstanding of how it is supposed to drive value. The real power lies in Industrial AI, where data flows through every part of your business, combining structured, interlinked datasets to uncover insights, optimise processes, and marry the digital with the physical world. That’s where the true value lies.”
As AI continues to drive societal change, it is crucial for companies to adopt a strategic and prepared approach before integrating this transformative technology.
