AI will intensify innovation and productivity of Malaysian businesses
BUSINESS use of artificial intelligence (AI) is steadily increasing at all levels — from enhancing customer service to managing data analytics.
According to an IDC report, global spending on AI systems will reach US$77.6 billion in 2022. The compound annual growth rate (CAGR) for IDC’s 2017-2022 forecast period is 37.3 percent.
IDC APAC Datacenter Group Research Director Chin Jun-Fwu explained why the trend will continue to rise.
While all drivers of AI will see improvements, “the biggest jumps [are] expected in accelerated innovation, higher competitiveness, and better customer engagement.”
Businesses embrace AI for many reasons but the top five drivers are innovation, competitive edge, better engagements, efficiency, and productivity.
How are businesses in Malaysia using AI?
By 2021, AI will almost double the rate of innovation in Malaysian businesses and improve business productivity by 1.6 times — IDC found in a new study issued in collaboration with Microsoft.
In Malaysia, 71 out of 100 surveyed businesses said AI will instrumental to an organization’s competitiveness over the next three years.
In the AI study, Chin highlighted that the country is particularly weak at investment and data — both of which are critical to building an AI solution.
The six dimensions used to measuring AI readiness for the country are strategy, investments, culture, capabilities, infrastructure, and data.
Malaysia 14th general election last year may have contributed to uncertainty for investors but its economy has since been stabilized.
On top of that, it isn’t the lack of data that is the problem, Chin elaborated.
Instead, it is the know-how for data to be processed and made into actionable information that is lacking.
“There is an urgent need for talents and tools to develop, deploy, and monitor AI models.”
The study also found that innovations derived from AI in the Asia Pacific are set to almost double by 2021.
Similarly, employee productivity will also improve by 1.9 times within the same timeframe.
The study surveyed 1,605 businesses in APAC that range from small to large organizations in various verticals.
To sum up, AI success comes to those who create. Winners are bound to get more business opportunities and drive the industry forward with its technology.
- Can technology help SMEs with customer loyalty?
- Singapore’s construction industry takes a huge step towards digitization
- Gartner sees telcos increasingly pitch 5G services to enterprises
- Six things marketers need to know about the TikTok app
- Can Google’s Privacy Sandbox protect the future of the vibrant web?