Artificial intelligence (AI) technology has revolutionized numerous industries, prompting significant transformations in their operations. Recently, a study conducted by researchers from the Cornell SC Johnson College of Business delved into the decisions made by firms regarding AI adoption and their sourcing strategies. The study, titled “Make or Buy Your Artificial Intelligence? Complementarities in Technology Sourcing,” examined the choices of over 3,000 European firms across sectors such as science, retail trade, finance, real estate, and manufacturing.
One key finding of the study was that many companies are opting for off-the-shelf AI technology that can be tailored to suit their specific requirements. Despite concerns surrounding the potential threat of AI to human jobs, the research indicated that workers possessing AI-related skills will continue to be in high demand.
The study emphasized the importance of both ready-made software solutions and in-house development, highlighting that these two approaches are not mutually exclusive for most firms. This suggests that ready-made software does not obviate the need for AI-related skills in the short term.
The research, authored by Chris Forman, Charles Hoffreumon, and Nicolas van Zeebroeck, analyzed data collected by the European Commission (EC) through a survey covering all 27 countries within the European Union in 2020. The findings revealed that firms across various sectors are utilizing AI for diverse purposes, such as fraud detection, process optimization, and automation.
Interestingly, different industries displayed varying preferences when it came to AI adoption. Sectors like finance and science demonstrated a tendency to develop their own customized software solutions, while others, such as agriculture and construction, leaned towards utilizing ready-made AI technology. This highlights the diverse approaches taken by different sectors in embracing AI.
Traditionally, as new technologies emerge, firms have relied on ready-made software solutions. However, the study points towards a shift in favor of bespoke AI solutions. It underscores the significance of sourcing strategies in understanding the diffusion of AI technology across industries.
Forman, one of the study’s authors, stressed that AI adoption involves a process of complementary innovation, where firms experiment to discover the most effective ways to leverage the technology. This iterative approach contributes to the ongoing refinement of ready-made software solutions over time.
The study provides valuable insights into the evolving landscape of AI adoption across various industries. It highlights the pivotal role played by both off-the-shelf and in-house AI solutions in driving innovation and efficiency.
Frequently Asked Questions (FAQ)
Q: What is the key finding of the study on AI adoption?
A: The study found that many companies are opting for off-the-shelf AI technology that can be customized to meet their specific needs, suggesting a continued demand for workers with AI-related skills.
Q: What sectors were examined in the study?
A: The study examined sectors such as science, retail trade, finance, real estate, and manufacturing.
Q: Are ready-made software solutions replacing the need for AI-related skills?
A: No, the study emphasized that for most firms, ready-made software does not eliminate the need for AI-related skills in the short term.
Q: What are some purposes for which firms utilize AI?
A: According to the study, firms utilize AI for purposes such as fraud detection, process optimization, and automation.
Sources:
– Cornell University: https://www.cornell.edu/
Definitions:
– Artificial intelligence (AI): Technology that enables machines to imitate human intelligence and perform tasks that typically require human intelligence, such as learning, problem-solving, and decision-making.
– Off-the-shelf: Refers to readily available software or technology solutions that are pre-designed and can be customized to meet specific requirements.
– Bespoke: Customized or tailor-made according to specific needs or requirements.
Frequently Asked Questions (FAQ)
Q: What is the key finding of the study on AI adoption?
A: The study found that many companies are opting for off-the-shelf AI technology that can be customized to meet their specific needs, suggesting a continued demand for workers with AI-related skills.
Q: What sectors were examined in the study?
A: The study examined sectors such as science, retail trade, finance, real estate, and manufacturing.
Q: Are ready-made software solutions replacing the need for AI-related skills?
A: No, the study emphasized that for most firms, ready-made software does not eliminate the need for AI-related skills in the short term.
Q: What are some purposes for which firms utilize AI?
A: According to the study, firms utilize AI for purposes such as fraud detection, process optimization, and automation.
Suggested Related Links:
– Cornell University: link name
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