Across various industries, numerous employees are gaining access to innovative AI resources.
For example, PwC US plans to provide each of its 75,000 employees with access to ChatPhC, an internal AI tool powered by OpenAI and operating within a secure Microsoft Azure environment by the end of this year.
During the CNBC Technology Executive Council summit in Washington, D.C., PwC’s chief products & technology officer, Joe Atkinson, guided chief financial officers through an AI strategy session, emphasizing the transformative potential of AI technologies. He expressed, “In my 30 years of experience, I have never witnessed a technology as hyped as AI, but its impact is truly significant.”
However, despite the promising prospects, the question remains: is the investment truly worthwhile?
As AI integration emerges as a critical priority across various sectors, financial officers and C-suite peers are engaged in ongoing discussions regarding the cost-benefit analysis. While the efficiency gains from AI are evident, a recent survey at the COF Summit revealed that 44% of respondents are concerned that tools like ChatGPT could potentially lead to increased costs rather than savings in the next 12 months. On the contrary, 56% believe that AI implementations will result in rapid cost savings.
Eric Kutcher, a top partner and CFO at McKinsey & Co., cautioned that the return on investment (ROI) from AI initiatives might extend beyond a year. He highlighted the importance of long-term analysis, acknowledging that while initial costs may rise, the benefits of AI technologies, such as McKinsey’s IoT system named Lilli, can yield substantial efficiency improvements over time.
With the U.S. economy expanding and labor force participation declining, enhancing worker productivity is paramount. Atkinson emphasized that AI tools like ChatPhC can streamline administrative tasks, allowing employees to focus on higher-value activities and enhance client service. He noted that PwC has received over 3,000 use cases for AI applications within six months of launching its internal “AI factory,” demonstrating widespread interest and adoption among employees.
Amidst significant investments by tech giants in AI advancements, Atkinson stressed the importance of monitoring licensing and deployment costs. He suggested that while initial costs may be a concern, the true value lies in customization and adaptation at the organizational level.
Similarly, Anna Bryson, CFO at Doximity, highlighted the transformative potential of AI in the medical field. By leveraging AI and machine learning, doctors can access real-time knowledge and reduce administrative burdens, ultimately improving patient care.
In the realm of data analytics, Palantir Technologies’ CFO, Dave Glazer, underscored the company’s focus on enhancing operational efficiency and decision-making through AI integration. By offering AI “boot camps” to clients, Palantir aims to accelerate the adoption and implementation of AI solutions, signaling a long-term commitment to AI technologies.
As organizations navigate the evolving landscape of AI adoption, cautious yet strategic approaches are essential. Bryson emphasized the importance of gradual AI integration, citing investments in AI for sales forecasting at Doximity. Despite uncertainties, she emphasized the value of exploring AI tools for network evaluation and market trend analysis.
While Kutcher anticipates declining costs associated with AI over time, he emphasized the need for a comprehensive, multi-year strategy to maximize the impact of AI technologies on revenue and efficiency. Ultimately, the success of AI initiatives hinges on effective utilization and strategic evaluation of their impact on business outcomes.
