If the Convid-19 pandemic affected enterprise information technology investments, it arguably has slowed such investments at some firms, which have had to shift support to remote workers. On the other hand, some firms who already have found use cases, and invested more heavily prior to the pandemic, seem to have increased their investment level, a McKinsey survey found.
Respondents from 61 percent of firms who report success with AI also say their firms increased investment in 2020. Patterns across industries show big variations.
Firms in healthcare, pharma, medical products; as well as companies in the automotive industry were most likely to have increased AI investments in 2020.
Most enterprises likely have not yet found clear financial benefits from AI deployment, though. A survey of more than 3,000 company managers about their AI spend found just 10 percent had gotten significant financial benefits from their investment so far, a report from MIT Sloan Management Review and Boston Consulting Group found.
A separate survey of U.K. firms found that 40 percent of 750 surveyed U.K. executives plan to invest in artificial intelligence in 2021, a survey by Fountech Solutions finds.
Some 30 percent of respondents say their firms piloted an AI solution for the first time since the onset of the Covid-19 pandemic. New AI specialists will be hired by 41 percent of respondent firms. Also, 48 percent of respondents say their companies will seek AI training for existing staff.
As a rule, some firms managed to grow revenue and profit during recessions and crises, Boston Consulting Group data suggests. While 44 percent of firms might experience shrinking profit margins and sales growth in a recession or crisis, 14 percent have shown growth in both sales and profits.
Some 28 percent of firms see lower sales but manage to increase profit margins. About 14 percent of firms see higher sales and lower profit margins.
Firms in health and consumer staples are most likely to see winners in recessions. Companies in energy, information and communications technology and financial industries are least likely to emerge with higher sales and profits in a recession.
source: Boston Consulting Group
It is possible--even likely--that firms continuing to invest in AI during the Covid-19 pandemic were already finding themselves gaining market share, increasing sales volume and maintaining or increasing profits.
The McKinsey survey found, for example, that a small number of respondents at some firms attributed 20 percent or more of their firm earnings before interest and taxes (EBIT) to AI. Those companies planned to invest even more in AI during the COVID-19 pandemic.
That is in keeping with the BCG data suggesting some firms gain market share and boost sales during recessions and crises. If such gains are attributed to AI, it makes sense that firms would maintain or boost such investments.
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