Artificial Intelligence in the Enterprise: A Real-World Perspective

Bob O’Donnell, President and Chief Analyst

Goal, Agenda and Methodology

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Determine AI application usage in US businesses

What applications

What tools are used

Where AI apps are deployed

Goals and challenges

Online survey of 504 US-based businesses building and/or using AI applications

Medium and Large Businesses

Over 3,700 in initial sample

AI in Business is Very Real

• 18% of companies using AI apps• Within that group, 56% in full deployment

• Average number of AI apps per company is 9.9

50%61%

72%

56%

0%10%20%30%40%50%60%70%80%

Medium Business Large Business Early Adopters Total

AI in Full Deployment

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But Doubts RemainFor Those Who Don’t Use AI

50%

35%30%

28% 28%23%

18%

12%10%

7% 6%3%

0%

10%

20%

30%

40%

50%

60%

Costs Intrigued,but notready

Lack of in-house

expertise

Don’t know enough

Applicability Negativeimpact onpersonnel

Negativeimpact oncompanyoperation

Negativeimpact on

society

Don’t see the value

No need AI isoverrated

Other

Non-AI Usage Concerns

AI Applications Focused On Real World

71% 69% 67% 67% 66% 66% 65% 63% 62% 61% 61% 60% 60%56%

51%

43%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Most Common AI Applications • Back office applications are most common

• New variations on “big data” analytics also strong

• Futuristic applications, like computer vision and voice, are growing

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36.9%

35.6%

27.5%

AI App Development Stages

Production Pilot Development

AI App MaturityVaries Greatly

Top 5 AI Apps in Production

Data Security

Spam Filtering

Network Security

Device Security

Call Center/Chatbot

Top 5 AI Apps in Pilot

Business Intelligence

Voice UI/Natural Language Processing

Image Recognition

Web/Social Media Analytics

Data Security

Top 5 AI Apps in Development

Robotics Manufacturing Efficiency/Predictive

Maintenance

Call Center/Chatbot

IoT Analytics

Physical Security

Tech Companies Dominate Current AI User Base

27%

13%

10% 9% 8% 7% 7%4% 4%

2% 2% 2% 1% 1% 1% 0% 0% 0% 1%

0%

5%

10%

15%

20%

25%

30%

INDUSTRIES USING AI

Inferencing vs. Training• Most companies (73%) are

building their own AI models and training them

• But over ¼ are relying on other models and only doing inferencing

26.9%

28.3%

44.8%

Inferencing and Training Usage

Inferencing Training Both

Chip Architectures for AI More Varied Than Expected

27.1%

22.8%13.8%

11.9%

7.0%1.6%

15.9%

Chip Architecture Used For Inferencing

CPU Dedicated AI ProcessorGPU Dedicated Vision ProcessorFPGA OtherDon't Know

28.7%

26.3%16.6%

10.3%

2.5%

15.7%

Chip Architecture Used For Training

CPU Dedicated AI Processor

GPU FPGA

Other Don't Know

Google Winning in theAI Cloud

But 25% Not Using Cloud For AI

26.6%

19.8%

19.2%

9.7%

24.6%

Cloud Platform Usage

Google Cloud Amazon AWS Microsoft Azure Other Not Using

Cognitive Services Used by 80% of AI App Developers

0%10%20%30%40%50%60%70%80%90%

100%

Cognitive Services by Application

Computer Vision Speech Natural Language Knowledge Other Not Using

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Data Sources for AI Models a Challenge

32.5%

23.3%

22.1%

14.3%

1.7% 6.1%

Data Sources for Models

Existing Internal Data Paid 3rd Party

Newly Collected Internal Data Public Domain

Other Don't Know

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Interesting AIApplication Facts

AI Application Users• 84% Internal• 54% External• 38% for Both

Cloud Functions• 38% Inferencing• 30% Training• 29% AI as a Service

Container Usage• 37% Currently Using• 32% Planning to Use• 31% No Intention of Using

Split Across 10 OptionsFRAMEWORK USAGE VARIED

63% 31% Don’t Know

AI FUNCTIONS

55% See AI as aFeature

Top 5 AI Frameworks

TensorFlow

ONNX

MXNet

ResNet

Theano

Top 5 Apps Where AI is Core

Call Center/Chatbot

Image Recognition

Robotics

Voice UI/Natural Language Processing

Network Security

Improving Efficiency is Top Goal for AI

Improveefficiency

Speedup/automate

tasks

Increasesecurity

Analyticalinsights

Cost savings Processimprovements

Newcapabilities

Revenuegeneration

Mitigating risks Reducecomplexity

Reduceheadcount

Increaseheadcount

Other primarygoal

AI Goals• Taking into

consideration both the frequency of selection and the rankings, it’s clear companies are hoping to gain efficiency and speed from deploying AI

• Security applications are also important

Complexity and Cost RemainTop Challenges for AI

Technologycomplexity

Implementationcomplexity

Costs Getting accessto high-quality

data sets

Uncertainty ofimpact

Limited internalskill sets

Pace of change Organizationalpolitics

Overwhelmingnumber ofpotentialsolutions

Definingpurpose,

business case

Impact onheadcount

Overwhelmingnumber of

vendor choices

Other challenge

AI Challenges • Access to good data to train models and uncertainty of the full impact of AI are also big concerns

Private Cloud and Public Cloud Usage for AI Apps Nearly IdenticalMobile and Edge Still Small

20.9%

20.7%

19.6%

12.1%

9.4%

7.0%

10.3%

Deployment Locations

Private Data Center Cloud

PC Client As a Service (Many Locations)

Mobile Edge

Don't Know

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IT and Engineering Lead, but AI Apps Built By Many People

32%

27%

15%

9%

6%

5%4% 2%

AI App Builders

In-House IT In House Engineering/Programming

Contractors Tech Vendor

Large SI AI Specialty Developer

Specialty SI Other

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IT, Operations and Engineering Top AI Department Users

• Large gap in usage vs. valuefor IT

• Support and customer service getting best value for their efforts

85%

50% 48%39% 38%

19% 19% 15%9%

5%

57%

43% 42% 39%

28%

13%18%

10% 6%2%

0%10%20%30%40%50%60%70%80%90%

Using vs. Benefitting

Using Benefitting

Conclusions

• Most early AI efforts are more practical than futuristic

• Security and efficiency improvements are key

• For many, AI applications are next generation analytics tools

• No easy AI solution• Technology requirements and deployments vary

greatly by application

• Legitimate concerns exist, but there is a lotof excitement for the technology and its potential impact

• Costs and complexity remain big concerns

ContactBob O’DonnellPresident and Chief AnalystTECHnalysis Research, LLC1136 Halsey Blvd.Foster City, CA 94404

bob@technalysisresearch.com(650) 224-2355@bobodtechwww.technalysisresearch.com

For additional information and complete survey results, a 178-slide version of this report is available for purchase.