A recent study by IDC, commissioned by Lenovo, reveals that global AI investment is poised to nearly triple by 2025. The study, titled "2025 CIO Playbook: It’s Time for AI-nomics," highlights the growing confidence among IT decision-makers regarding AI adoption, yet serious hurdles remain in terms of ROI, data quality, and governance.
One of the significant challenges for organizations is justifying the return on investment for AI projects. While more than 90% of IT professionals report favorable outcomes from AI implementations, 37% of business executives remain skeptical about its effectiveness. This disparity highlights a disconnect that organizations must bridge to gain support for AI investments.
Generative AI (GenAI) is fueling much of this enthusiasm, with current adoption rates at just 11% of organizations, projected to jump to 42% in the upcoming year. By 2025, AI is expected to comprise over 20% of total IT expenditures, predominantly in marketing, software development, and IT operations where automation through AI is increasingly seen as a competitive edge.
Ken Wong, President of Lenovo’s Solutions & Services Group, emphasizes the importance of adopting a balanced AI strategy. He suggests that organizations need to act quickly to modernize their systems while ensuring that their technological foundations are robust for future advancements. Simplifying the development and deployment of AI solutions could help build trust and encourage greater investment.
However, financial justification isn’t the only barrier to successful AI implementation. The study reveals that over half of multinational companies lack an adequate AI Governance, Risk, and Compliance (GRC) framework, which poses ethical and compliance risks in the evolving landscape of AI. Without these structures in place, organizations may find it challenging to navigate regulatory environments and maintain responsible AI practices.
Another significant issue identified is poor data quality. High costs associated with IT and the complexities of integrating AI into legacy systems contribute to many AI project failures. Consequently, 33% of firms surveyed plan to enhance their data management sufficiently in the coming year to address these challenges.
In light of these hurdles, many organizations recognize that internal capabilities alone are often insufficient. A common barrier to successful AI investments is a lack of specialized talent. Partnering with AI experts has emerged as a crucial strategy for successful AI deployment, offering scalability and improved interoperability.
Ashley Gorakhpurwalla, President of Lenovo’s Infrastructure Solutions Group, stresses the need for a hybrid approach to AI. He argues that a data-driven strategy is necessary to harness AI’s full potential, suggesting that integrating both private and public AI frameworks can help businesses maximize their impact.
As organizations navigate these challenges, a focused and collaborative approach will be essential to unlock the true value of AI and drive sustainable growth in the coming years.
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