Companies ramp up AI spending even as most pilots fail to deploy: Lenovo executive
A Lenovo survey shows companies expect strong returns from AI investments, though most corporate pilots never reach successful deployment
Global businesses are pouring billions into artificial intelligence amid a growing fear of missing out on enterprise AI strategies, according to Ken Wong, president of Lenovo’s Solutions & Services Group (SSG).
However, despite projections of massive financial returns, the vast majority of these initiatives were not deemed a success, he added.
Wong, whose division helps businesses build and maintain AI infrastructure, estimated more than 90 per cent of these pilots fail to reach satisfactory deployment: a failure rate that stands in stark contrast to the booming optimism around the technology.
According to a recent report by Lenovo, which includes a survey of 3,120 tech and business leaders, 96 per cent of polled organisations said they planned to increase their AI spending over the next 12 months.
This widespread investment is expected to drive average budget growth of more than 13 per cent.
Executives are banking heavily on these investments paying off. The survey found that 93 per cent of organisations anticipated a positive return on their AI initiatives, projecting an average return of US$2.79 in value for every dollar spent.