Report uncovers untapped business opportunities for AI, real-time decisioning
CHICAGO, Sept. 6, 2019 /PRNewswire/ -- Business investment in artificial intelligence (AI) is growing at unprecedented levels, backed by executives' belief in the value of this emerging technology. But many companies currently aren't realizing AI's potential due to a range of technical and cultural gaps. However, a new report by Harvard Business Review Analytic Services, sponsored by Enova Decisions, shows businesses can overcome these hurdles and fully capitalize on their investment by applying AI to an overlooked area: real-time operational decisions.
The report, "The Analytics-Driven Organization: Making Real-Time Business Decisions with AI," examines the results of a survey of 312 senior executives in midsize companies. Executive responses reveal there is a gap between AI investments and the value companies are deriving from those investments. Over two-thirds of executives said AI will be a competitive differentiator for companies in their markets within the next year, yet only 15 percent of organizations currently have AI-powered analytics in place.
Based on the survey results, the report identifies three main factors that inhibit companies from realizing the value of their AI investments: technology roadblocks, cultural challenges, and a bias for strategic and tactical use cases over operational initiatives. In many cases, leaders simply aren't considering how operational decisions can benefit from AI.
"Operational decisions, not strategic decisions, represent a largely-untapped, high-potential opportunity for AI in businesses," said Joe DeCosmo, Chief Analytics Officer for Enova International. "Many businesses are realizing that the rules engines they rely on to automate decisions cannot support machine learning. However, with the right technical support applied to specific operational tasks like fraud detection and credit risk assessment, companies can consistently improve the customer experience, reduce operational costs and drive business growth."
Applications for operational decisioning span across many sectors, from banking to healthcare. The report offers a three-step suggested process businesses can follow to fully realize the value from their AI investments.
Business leaders can access the full report on the Enova Decisions website at URL https://www.enovadecisions.com/hbr-artificial-intelligence/ and at URL https://hbr.org/resources/pdfs/comm/enova/AnalyticsDrivenOrg9.4.19.pdf.
About Enova Decisions
Enova Decisions uses real-time predictive analytics, AI, big data and its on-demand business rules management system to help companies build decision flows that make data-driven operational decisions instantly and at scale. Chicago-based Enova Decisions is part of Enova International, a leading publicly-traded technology and data-analytics-driven online lending company. Enova Decisions leverages 15 years of proven technology and analytics expertise to help clients thrive with custom, real-time analytics services and instant data-driven decisions at scale. Visit www.enovadecisions.com to learn more.
SOURCE Enova Decisions
Related Link https://www.enovadecisions.com
Senior executives across a variety of industries are understandably caught up in the excitement surrounding data and analytics. They began authorizing investments in big data solutions earlier this decade and many are now looking to solutions supported by artificial intelligence (AI) and machine learning (ML) to bolster real-time decision making.
Itís easy to understand whatís fueling this spending. Business executives and department managers feel intense pressure to make faster, more accurate decisions to address essential questions, such as: How do we get better at identifying fraud and the creditworthiness of customers? What new markets should we enter? How do we increase productivity? In turn, vendors of data management and analytics platforms are promoting the latest and greatest tools for spotting new business opportunities, addressing market threats, and adapting to fast-changing business conditions.
But data and analytics investments are leaving some senior executives to struggle with another nagging question: Why arenít we reaping all the rewards we had envisioned? The answer for many business leaders is that applying analytics to real-time decision making is a complex undertaking, and no matter how much they spend, success isnít guaranteed.
The importance of AI-powered analytics is increasing, according to a global survey of 312 senior executives in midsized companies by Harvard Business Review Analytic Services. Sixty-eight percent of the respondents say AI will be a competitive differentiator for companies in their markets within the next year. But there is a discrepancy between what people see as the importance of AI and the number of companies that are actively using it. Only 15% of the organizations surveyed currently have this analytics resource in place, and a wide range of technical and cultural gaps are preventing more organizations from adopting AI.
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