Data practices, better AI use can lead to $460 bn incremental profit for businesses: Report

Strong data management practices combined with better use of artificial intelligence (AI) can increase business profit, according to a new study. The study conducted by Infosys Knowledge Institute, the research arm of Infosys, said that companies can generate over $460 billion in incremental profit if they improve data practices, trust in advanced AI, and integrate AI with business operations.  

However, the study also noted that despite high expectations for data and AI, most companies fail to act on these areas to convert data science to business value, said the report. According to Infosys researchers, although three of four companies want to operate AI across their firms, most businesses are new to AI and face daunting challenges to scale. 81% of respondents deployed their first true AI system in only the past four years, and 50%, in the last two years.

The report also found that 63% of AI models function only at basic capability, are driven by humans, and often fall short on data verification, data practices, and data strategies. Only 26% of practitioners are highly satisfied with their data and AI tools and despite the siren song of AI, something is clearly missing. 

Satish H.C, executive vice president and co-head delivery, Infosys, said that companies that don’t trust their data are at risk. Their projects remain either in a ‘pilot’ stage or can use data and AI only to solve small problems.

In contrast, high-performing companies often think differently about AI and data. Companies highly satisfied with their AI (currently only 21%) have consistently trustworthy, ethical, and responsible data practices. These prerequisites tackle challenges of data verification and bias, build trust, and enable practitioners to use deep learning and other advanced algorithms. 

The research found the financial services industry recorded the strongest satisfaction with its data and AI uses, followed by retail and hospitality, healthcare, and high tech. 

According to Infosys, businesses that apply data science to practical requirements also create value. The report found that business — data scientist integration accelerates efficiencies and value extraction (additional $45 billion profit growth). For intelligent data, business and IT are much better together.