In 2020, the majority of companies will continue investing in AI and Big Data initiatives, but the pace of the investment is still slow.
The latest survey from NewVantage Partners has revealed that 64.8% of enterprises are investing more than $50 million in Big Data and AI initiatives in 2020, up from just 39.7% in 2018. Nearly all (98.8%) of organizations are investing in Big Data and AI initiatives. The annual survey is based on Top level C-suite executives from over 70 Fortune 1000 companies and their adoption of Big Data and AI capabilities.
Although the investment in Big Data and AI has increased, companies are still playing catch with the pace of investment. As per the survey, only 51.9% of firms are increasing their rate of investment, down from a whopping 91.6% in 2019. Nearly 92% of the companies surveyed reported there is an on-going investment in AI. They are embracing AI technologies and solutions; however, only 14.6% of companies have deployed AI solutions into widespread production. There was a decline in the percentage of organizations considering AI as the most disruptive technology from 80% in 2019 to 69.5% in 2020, found the survey. Meanwhile, only 11% considered cloud computing as very disruptive, according to the numbers.
As per the survey, companies strive to become data-driven as the progress is slow-paced. Nearly 75% of companies cited the adoption of Big Data as an on-going challenge, while only 37.8% said they had created a data-driven organization. Furthermore, only 26.8% of companies succeed in building a data culture. The majority of (90.9%) organizations cite people and process challenges as the most significant barriers to become data-driven companies.
The survey revealed that 72.1% of companies continue to struggle with the role and function of the Chief Data Officer, while only 27.9% consider the role of being successful and established. In 2020, nearly half (48.5%) of organizations prefer outside change agents. Around 16% of companies are moving away from insider veterans, down from 32.4% in 2019. As per the survey, 26.8% of companies continue to point to no single owner for point of accountability for data. Only 40.2% identify the CDO as the primary executive with data responsibility.
Enterprises that change the paradigm of data management and exploitation in a more human direction will lead in the future stated the survey.