33% of tech vendors plan to invest $ 1 million or more in AI in next two years: report
Mumbai, October 3 A significant number of technology and service provider organizations with AI technology plans are planning to increase their investment in the technology, according to a recent survey by Gartner Inc.
According to the report, a third of those organizations said they would invest $ 1 million or more in these technologies over the next two years. Additionally, 87% of survey respondents whose AI technologies are a major investment area believe industry-wide AI funding will increase at a moderate to rapid pace through 2022.
“Diverse and rapidly evolving AI technologies will impact all industries,” said Errol Rasit, senior vice president of Gartner.
“Tech organizations are increasing their investments in AI as they recognize its potential not only to assess critical data and improve business efficiency, but also to create new products and services, expand their customer base and generate new revenue. These are serious investments that will help dispel the AI hype, ”said Rasit
AI technologies reported the second highest average funding allocation compared to other emerging technology areas such as cloud and IoT. Respondents whose organizations have invested in AI reported their highest planned investment in AI computer vision, averaging $ 679,000 over two years.
“Very few respondents reported funding amounts of less than $ 250,000 for AI technologies, indicating that developing AI is expensive compared to other technological innovations. This is not an easy segment to grasp due to the complexity of building and training AI models, ”said Rasit.
The survey further highlighted the challenges organizations face as a barrier to adoption of AI.
This includes the relative immaturity of AI technologies compared to other areas of innovation, which has been cited as one of the main reasons among organizations investing in AI leading to failure on onboarding. of an emerging technology.
Just over 50% of those surveyed reported significant adoption by target customers of their AI-powered products and services. For 41% of those surveyed, emerging AI technologies under development or early adoption meant that there was a wave of potential adoption as new or improved AI products and services entered the market. general availability.
Apart from that, product complexity and lack of skills were the biggest hurdles for product managers investing in AI who reported slower-than-expected implementation.
“These survey responses reflect the difficult development cycle of AI technology, given its complexity, as well as industry-wide challenges in recruiting AI talent due to the limited numbers. of qualified people, ”said Rasit.
The second annual Gartner 2021 Survey of Emerging Technology Product Leaders was conducted online from April to June 2021 with 268 respondents from China, Hong Kong, Israel, Japan, Singapore, UK and the United States.