cxo voice
  • Home
  • News
  • Expert Opinion
  • Leaders Talk
  • Cyber Security
No Result
View All Result
  • Home
  • News
  • Expert Opinion
  • Leaders Talk
  • Cyber Security
No Result
View All Result
Interviews, IT and Technology News India | CXO VOICE
No Result
View All Result
Home News AI

70 Percent of AI Projects in Digital Commerce are Successful

Santosh Kumar by Santosh Kumar
October 12, 2018
Reading Time: 3 mins read
ai in digital commerce
Share on FacebookShare on TwitterShare on LinkedinShare via E-Mail

About 70 percent of digital commerce organizations surveyed report that their AI projects are very or extremely successful. Use of AI (artificial intelligence) in digital commerce is generally considered a success, according to a survey by Gartner. Gartner conducted a survey of 307 digital commerce organizations that are currently using or piloting AI to understand the adoption, value, success and challenges of AI in digital commerce. Respondents included organizations in the U.S., Canada, Brazil, France, Germany, the U.K., Australia, New Zealand, India and China.

Three-quarters of respondents said they are seeing double-digit improvements in the outcomes they measure. The most common metrics used to measure the business impact of AI are customer satisfaction, revenue and cost reduction. For customer satisfaction, revenue and cost reduction specifically, respondents cited improvements of 19, 15 and 15 percent, respectively.

Gartner predicts that by 2020, AI will be used by at least 60 percent of digital commerce organizations and that 30 percent of digital commerce revenue growth will be attributable to AI technologies.

“Digital commerce is fertile ground for AI technologies, thanks to an abundance of multidimensional data in both customer-facing and back-office operations,” said Sandy Shen, research director at Gartner.

The survey found a wide range of applications for AI in digital commerce. The top three uses are:

1.     Customer segmentation;

2.     Product categorization; and

3.     Fraud detection.

Top challenges

Despite early success, digital commerce organizations face significant challenges implementing AI. The survey shows that a lack of quality training data (29 percent) and in-house skills (27 percent) are the top challenges in deploying AI in digital commerce. AI skills are scarce and many organizations don’t have such skills in-house and will have to hire from outside or seek help from external partners.

On average, 43 percent of respondents chose to custom-build the solutions developed in-house or by a service provider. In comparison, 63 percent of the more successful organizations are leveraging a commercial AI solution.

“Solutions of proven performance can give you higher assurance as those have been tested in multiple deployments, and there is a dedicated team maintaining and improving the model,” said Ms. Shen.

“Organizations looking to implement AI in digital commerce need to start simple,” said Ms. Shen. “Many have high expectations for AI and set multiple business objectives for a single project, making it too complex to deliver high performance. Many also run AI projects for more than 12 months, meaning they are unable to quickly apply lessons learned from one project to another.”

On average, respondents spent $1.3 million in development for an AI project in digital commerce. However, of the more successful organizations, 52 percent spent less than $1 million on development, 20 percent spent between $1 to 2 million, and 9 percent spent more than $5 million.

To increase the likelihood of success, Gartner advises digital commerce leaders to:

1. Assess talent. If there is insufficient AI talent in-house to develop and maintain a high-performance solution, go with a commercial solution of proven performance.

2. Aim for under 12 months for a single AI project. Divide larger projects into phases and aim for under 12 months for the first phase, from planning, development and integration to complete launch.

3. Ensure enough funding. Allocate the majority of the budget to talent acquisition, data management and processing, as well as integration with existing infrastructure and processes. Enough funding also helps secure high-performance solutions.

4. Use the minimum viable product (MVP) approach. Break down complex business problems and develop targeted solutions to drive home business outcomes. Use AI to optimize existing technologies and processes rather than to try to develop breakthrough solutions.

 

You may would like to read: Cloud Data Protection, 15 Best Practices You Need to Follow

Tags: AI in digital commercedigital commerceGartnerGartner digital commerce servey
Santosh Kumar

Santosh Kumar

Senior Writer at CXO VOICE. His email is santosh@cxovoice.com

Related Posts

CMO
News

60% of CMOs Have Centralized Some or All of Their Function in the Pursuit of Operational Efficiency: Survey 

July 13, 2022
customer service and support leaders, work from home, Gartner
News

Gartner Predicts By 2025, 75% Of Companies Will “Break Up” With Poor-Fit Customers

February 24, 2022
Business productivity
Survey

61% of Supply Chain Leaders Expect a Permanent Hybrid Work Model for Frontline Workers: Gartner

February 3, 2022
CRM software in 2020
News

Gartner Marketing Survey Finds 64% of Consumers Try to Keep Work and Personal Lives Separate During Pandemic

January 11, 2022
Wipro's Digital Database Services (DDS)
IT

IT Spending in India to Reach $100 Billion in 2022: Gartner

December 1, 2021
AI Software Market
AI

Global AI Software Market to Reach $62.5 billion in 2022

November 23, 2021
Business

Global Semiconductor Revenue Recorded 10.4% Growth in 2020: Gartner

April 13, 2021
Worldwide IT spending
IT

Worldwide IT spending to touch $4 trillion in 2021 : Gartner

April 8, 2021
Load More
Next Post
Benefits of AI

NITI Aayog and Microsoft India Team Up to leverage the Benefits of AI for The Nation Growth

ADVERTISEMENT

Expert Views

Sundar Balasubramanian, The Dawn of a New (Ransomware) Age
Cyber Security

The Dawn of a New (Ransomware) Age

August 5, 2022
AI Cloud Enterprises
AI

What can AI Cloud do for Enterprises?

March 9, 2022
Data Modernisation
Technology

4 Key Trends Driving Data Modernization Across The Enterprises

January 28, 2022
IT Service Management (ITSM)
Enterprise

The need of ITSM to start a digital transformation journey and ensure high ROI

January 17, 2022
Cloud Adoption
Cloud

Cloud Adoption Needs to Be Accelerated

January 12, 2022

Get Latest Update

Subscribe to our mailing list to receives newsletter direct to your inbox!

ADVERTISEMENT

Leaders Inerviews

Enterprises, and MSMEs IoT
Leaders Talk

IoT is now seen as an essential enabler for the enterprises to be future ready : Joyjeet Bose

-
Security While Working Remotely interview with Filip Coftas
Cyber Security

Security While Working Remotely [Interview]

-
Akita Security Device Help you Protect your Security During COVID-19 [Interview with Zakir Hussain]
COVID-19

Can Akita Security Device Help you Protect your Security During COVID-19 [Interview]

-
digital transformation and customer experience Newgen software
Interview

Digital Transformation Journey helps Newgen Software Improve Customer Experience [Interview]

-

Entrepreneur

Inspiring Women Entrepreneurs in India (2022)

Technology Adoption For Entrepreneurs

Volunteering management is the need of the Hour

Significance Of Ethical Entrepreneurship In The Post COVID-19 Economy

CXO VOICE is a premier resource for the enterprises, SMBs and Startups CXOs and business leaders, It enables CXOs and business executives gain access key insights, experts views, analysis, business strategy, and leaders interviews on what’s happening in the market and its impact.

Connect with us

Easy Links

  • Cryptocurrency
  • Event
  • Blockchain
  • Press Release
  • Resources & Downloads

Write Us

contact@cxovoice.com

Newsletter

Subscribe to our mailing list to receives newsletter direct to your inbox!

  • Home
  • About
  • Contact Us
  • Advertise
  • Privacy & Policy
  • Feedback

© 2021 CXO VOICE

No Result
View All Result
  • Home
  • News
  • Expert Opinion
  • Leaders Talk
  • Cyber Security

© 2021 CXO VOICE