Study evaluates how Artificial Intelligence can increase the performance of companies
Artificial Intelligence (AI) tools, applications, and capabilities have received enormous attention from industry professionals, academics, and policymakers. The AI market is growing rapidly and is projected to reach $309.6 billion by 2026, compared to $58.3 billion in 2021. Against this backdrop, companies are integrating AI into their business models to improve efficiency and create performance in an increasingly digitized world.
FGV EAESP researcher Maciel M. Queiroz, in collaboration with Samuel Fosso Wamba, Ilias Pappas, and Yulia Sullivan, published a study in Information Systems Frontiers exploring the direct impact of AI capability on companies' performance, as well as its indirect effect when mediated by a data-driven culture. The survey used 205 responses from an online survey of companies that have adopted AI in the US, analyzing data through structural equation modeling.
The researchers present three types of capabilities required for AI capability: tangible (technology), intangible (personnel skills), and human (data-driven culture). Thus, AI capability is defined as a company's ability to select, orchestrate, and leverage its specific AI capabilities. Therefore, to improve performance, companies must deploy these resources efficiently.
The study concludes that AI capability has a significant positive effect on the performance of companies. Moreover, a data-driven culture partially mediates this relationship. Companies with a strong data culture are able to extract more value from their AI capabilities.
Importance of Different AI Feature Configurations
Therefore, AI capabilities are essential to support business performance, constituting a strategic resource for competitive advantage.
Companies can achieve high levels of performance when they combine technical and infrastructure capabilities of AI with human resources or a data-driven culture. In contrast, companies with low levels of data-driven culture need substantial investments in human resources and infrastructure to achieve high performance.
The study also underscores that AI capability is a powerful driver to support the Sustainable Development Goals (SDGs), such as SDG 9 (industry, innovation and infrastructure) and SDG 12 (responsible consumption and production). Therefore, the positive impact of AI capability on the data-driven culture and performance of companies can contribute significantly to sustainable development.
The findings suggest that companies can achieve high levels of performance by utilizing different configurations of their AI capabilities. Therefore, it is not necessary for companies to use all available resources to achieve high performance, but rather to make an effective combination of these resources.
The researchers say that managers and decision-makers should pay close attention to AI capability. Developing and deploying AI technical, human, and infrastructure capabilities is crucial to activating these capabilities. Therefore, companies that can efficiently integrate tangible, intangible, and human AI resources are better positioned to gain competitive advantages and contribute to sustainable development.
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