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A recent report by IDC, commissioned by Decision Intelligence company Aera Technology, sheds light on the pivotal role of AI-enabled decision intelligence in driving success for enterprises. Titled ‘What Every Executive Needs to Know About AI-Powered Decision Intelligence,’ the whitepaper, coupled with a global survey of Fortune 1000 companies, highlights the substantial impact of decision velocity and AI-driven decision making on value generation.
According to the findings, leading organizations are leveraging AI, analytics, and data to create value for various stakeholders, including customers, employees, partners, investors, and communities. The report indicates that 75% of executive, VP, and director-level respondents anticipate significant or very significant improvements with investments in Decision Intelligence initiatives.
The IDC research further reveals that Decision Intelligence has contributed to up to a 20% improvement across product and service innovation, employee productivity, customer and employee retention, and more since the last fiscal year.
Dan Vesset, Group Vice President, Analytics and Information Management at IDC, emphasized, “What unites these organizations are clear goals and KPIs to measure them, investments to accelerate decision velocity, and pragmatic use of enabling AI, analytics, and data technologies and skills.”
The report underscores some key challenges in decision-making processes, including the complexity of variables, lack of access to necessary data, and difficulties in integrating required technology. Surprisingly, 33% of decisions are primarily made based on intuition and experience, and 25% of decisions that should be made are not. Moreover, there exists a disconnect between executives’ understanding of lower-level decision-making practices, with only 55% of executives having a full grasp of these processes.
However, the report indicates that enterprises recognize the potential of AI-enabled decision making. Leaders in this space exhibit characteristics that support the value of such initiatives, with nearly double the number of leaders (33%) compared to followers (17%) indicating that they have programs for ongoing monitoring, review, and transformation of decision-making processes.
Fred Laluyaux, CEO at Aera Technology, commented on the findings, stating, “IDC’s research clearly shows the value creation divide among enterprises operationalizing decision intelligence and those that are not.” Laluyaux emphasized the need for the next wave of enterprise digital transformation to go beyond traditional tools, advocating for innovative and intuitive technology that empowers individuals, accelerates accurate decision making at scale, and positions companies to be self-driving, self-learning, and competitive in the digital era.