Source URL: https://www.theregister.com/2024/10/22/genai_roi_appen/
Source: The Register
Title: Sorry, but the ROI on enterprise AI is abysmal
Feedly Summary: Appen points to, among other problems, a lack of high-quality training data labeled by humans
The deployment of AI projects and associated return on investment (ROI) have declined, according to a large survey of IT decision-makers.…
AI Summary and Description: Yes
Summary: The text discusses a survey revealing a decline in AI project deployments and ROI, highlighting challenges related to high-quality training data and the difficulty in estimating AI value. Despite this, some organizations report positive returns from AI initiatives.
Detailed Description:
The provided text reflects crucial findings that impact the fields of AI and associated security and compliance areas. The report from Appen, based on a survey of IT decision-makers, outlines several significant trends:
– **Decline in AI Project Deployment and ROI**:
– The mean percentage of AI projects deployed has decreased from 55.5% in 2021 to 47.4% in 2024.
– The percentage of deployed AI projects demonstrating significant ROI has also fallen from 56.7% to 47.3%.
– **Reasons for Decline**:
– The report emphasizes the critical need for high-quality, human-labeled training data.
– Suggests that better alignment of AI models with real-world needs significantly enhances their capabilities and deployment likelihood.
– **Market Context**:
– Despite the challenges indicated by Appen, a Gartner report notes generative AI is the most commonly deployed type of AI at work, although ROI remains a concern.
– 49% of survey respondents highlighted the difficulty in estimating and demonstrating AI value as a primary obstacle to adoption, indicating a significant knowledge gap for businesses.
– **Contrasting Views**:
– While Appen highlights the troubles many organizations face, EY indicates a more optimistic view, noting that a portion of senior leaders believes broad AI initiatives are yielding positive results in areas like operational efficiency and customer satisfaction.
– **Market Dynamics**:
– There is an ongoing conversation within the industry about the value of AI investments, with significant capital expenditure planned but uncertain returns.
This analysis is particularly relevant for professionals in the fields of AI, data quality management, compliance, and operations as it identifies the importance of high-quality training data, effective ROI measurement, and project deployment strategies within the sector. Understanding these factors can guide organizations in enhancing their AI initiatives, capitalizing on potential returns, and mitigating risks associated with AI investments.