The application of artificial intelligence (AI) is becoming increasingly widespread, which brings huge opportunities to enterprises, but also lurks many risks. Gartner analysts recently shared their insights into cost and productivity issues in AI applications at a recent Australian seminar, revealing potential pitfalls of AI applications and providing companies with coping strategies. This article will explore these issues in depth to help companies better ride the AI wave and avoid paying high prices for blindly following the trend.
In this era of rapid technological development, artificial intelligence (AI) has penetrated into every aspect of our lives, from smart assistants to chatbots, they are all making our lives more convenient.
However, as more and more companies begin to integrate AI technology into their work, many people are unaware of the risks lurking behind it. Recently, two analysts from the analysis company Gartner shared their insights at a seminar held in Australia, which is worth pondering.
Picture source note: The picture is generated by AI, and the picture is authorized by the service provider Midjourney
First of all, Mesaglio said bluntly: "Wasting money on generative AI is a piece of cake!" She also mentioned that everyone was shocked and confused when they first saw cloud computing bills. It is estimated that many companies will now have to Going through a similar situation. Mesaglio warned: “The cost of AI may vary by 500% to 1000%!” Imagine that you have just been excited to try AI, but in the blink of an eye, the bill is several times higher than expected. You can imagine how you feel.
Why does this happen? One reason is the supplier's price increase, and another hidden "black hole" is the enterprise's own negligence in the use of cloud resources. Many times, when companies use AI, they don't need it to handle simple queries, and this is something that is often overlooked. Think about asking an AI a question, only to have it provide you with a complex answer of several thousand words, when you actually only want a one-sentence response. As a result, the cost will naturally increase.
In addition, there is another important point. Mesaglio mentioned that although letting AI process unstructured data (such as random documents, emails, etc.) can obtain more information and bring better results, it is also a "money-burning" path. Relatively speaking, centralized management of data will save money, but it will also face various management challenges for the IT department. It's like when cooking, do you choose to add more seasonings to enhance the taste, or simplify the ingredients to control costs? This is really a distressing choice.
Having said this, we have to mention another "potential problem" - the "productivity leakage" that may be caused by successful AI applications. According to research by Gartner, employees using AI can save an average of 43 minutes a day. Sounds good, right?
But the question is, how do people use this time? Mesaglio humorously mentioned: "I will use this time to drink a cup of coffee." This shows that many people may choose to enjoy leisure rather than work harder , ultimately leading to a significant reduction in the benefits brought by AI.
When explaining the productivity improvements of AI, analysts also used a vivid example. Imagine two lawyers, one a newbie and the other a seasoned veteran. Novices will quickly improve their work efficiency with the help of AI, while veterans may not be able to benefit from it because of the knowledge they already have. Such a phenomenon may cause some dissatisfaction within the company, especially when the performance gap between new employees and old employees gradually narrows, and the old employees may feel marginalized.
So, how should enterprises respond when faced with the "double-edged sword" of AI? Analysts suggest that when enterprises consider the application of AI, they must first clarify whether the pace of adoption is "stable" or "accelerated." For those industries that have not yet been transformed by AI, it may be more prudent to maintain a stable approach; while those companies that hope to occupy a place in the market through AI will need to accelerate their pace. However, enterprises should understand that each organization has its own rhythm, and there is no need to blindly pursue it. The only way to choose the development path that suits you best is to follow it blindly.
AI is a powerful tool that can bring huge value to enterprises if used properly, but caution must be exercised to avoid all kinds of troubles caused by improper use.
Highlight:
When companies use AI, costs may vary by astonishing 500% to 1000%!
? Improper use of AI to solve simple problems can lead to unnecessary cost waste.
⏳ Successful AI may cause "productivity leakage", and employees may not use the time saved to increase efficiency.
All in all, while embracing AI technology, companies must carefully evaluate costs, optimize resource utilization, and pay attention to potential productivity issues. Only rational planning can truly unleash the value of AI and avoid cost traps and efficiency misunderstandings. Remember, AI is not a panacea, and the one that suits you is the best.