Traditional enterprises are optimistic about the potential of artificial intelligence (AI) but face significant strategic challenges that impede their aspirations, as outlined in a recent report by Silo AI, a Finnish startup renowned for its development of a large multilingual model (LLM) and its focus on integrating AI into established businesses. The report delves into the landscape of various traditional businesses across industries such as manufacturing, construction, financial services, and the public sector, despite their average age of 87, revealing that all are actively exploring AI initiatives.
Approximately 70% of these enterprises have ongoing experiments or projects related to AI, with 86% anticipating these projects to transition into production within the next year. Moreover, nearly two-thirds (65%) have successfully implemented prior AI projects. However, despite these efforts, nearly half of the surveyed companies express a neutral sentiment at best regarding the outcomes of their AI endeavors.
A critical finding from the study is the prevalence of unclear strategies and the absence of executive leadership dedicated to AI and data management, with a notable lack of C-level representatives overseeing these areas. Furthermore, the majority of AI projects are managed independently within each business unit, leading to fragmented approaches and challenges in data governance.
To address these issues, Silo recommends appointing a C-suite executive responsible for integrating AI into the organization’s overarching strategy and ensuring alignment with specific business objectives. Additionally, establishing frameworks to evaluate the return on investment (ROI) of AI projects is advised, with only a quarter of respondents currently having such structures in place.
Another key recommendation is the creation of an AI center of excellence to facilitate collaboration across departments and enhance the accessibility and cost-effectiveness of AI initiatives within the organization. Despite the potential benefits, Silo emphasizes that successful AI integration requires a long-term perspective and concerted efforts, particularly in embedding AI technologies at the core of products, services, or processes to maximize value creation over time.
