Database services and business analytics software provider Teradata Corp. is the latest organization to take a long, hard look at the advances in artificial intelligence technology, and what the implications are for enterprises.

The company commissioned U.K.-based market research firm Vanson Bourne Ltd. to create its new report, State of Artificial Intelligence for Enterprises, and its biggest finding is hardly a surprise: Some 80 percent of enterprises have already made significant investments in AI, and will continue to do so in the coming years.

It also reckons that these investments will lead to the creation of a new executive role at most organizations – a wave of new chief AI officers, or CAIOs, who will likely be taking up seats at company boardrooms across the world in the coming years.

Teradata said further AI investments will be necessary because most organizations – again, not surprisingly – believe there are many barriers in the way of its wider adoption. In total, 91 percent of respondents in Teradata’s survey said they expect to come across hurdles in the way of AI realization, the most common ones a lack of suitable IT infrastructure and staff skills, low budgets, concerns around policies, regulations and rights and its impact on customer expectations.

Despite these concerns, most organizations expressed confidence that their investments in AI will eventually pay off. Some of the anticipated benefits include increased revenues, increased product innovation, the ability to deliver better customer services and enhance supply chains and business operations, and better security benefits.

With regard to revenues, the benefits of AI look to be quite compelling. Companies reported that they expect to see a return of investment of $1.23 for every dollar spent over the next three years, growing to $1.99 for every dollar spent in the next five years, and eventually to $2.87 for every dollar spent within 10 years.

“There is an important trend emerging evident in this report — enterprises today see AI as a strategic priority that will help them outpace the competition in their respective industries,” said Atif Kureishy, vice president at ThinkBig, a Teradata company. “But to leverage the full potential of this technology and gain maximum ROI, these businesses will need to revamp their core strategies so AI has an embedded role from the data center to the boardroom.”

Teradata said that in order for organizations to revamp their AI efforts, they should consider creating a new executive position dedicated to the role. In its report, the company predicts the rapid rise of the chief AI officer, who will be tasked with steering AI adoption and strategy, and coordinating and implementing it throughout the organization.

Currently, most organizations rely on their chief information officers or chief technology officers to lead these efforts. As such, Teradata’s findings will probably be a welcome relief to these individuals, as the report predicts that 62 percent of organizations will create a dedicated CAIO role in the next few years.

“Enterprises expect AI to be a technology with longevity, planning to double their investment in five years and triple it within 10 years,” Teradata’s report concluded. “But to maximize this ROI, companies realize they must re-imagine how AI will disrupt all aspects of their businesses and create a suitably agile strategy to gain ROI.”

Image: Teradata