Dive Brief:
- Rather than struggling to identify generative AI implementation ideas, enterprises are finding it difficult to know which use case to prioritize, according to a Snowflake and Enterprise Strategy Group survey of 1,900 business and IT leaders in nine countries.
- Around 7 in 10 early AI adopters say they have more potential use cases than they can fund, the report published this week found. More than half find it difficult to lean on objective measures like costs, business impact and ability to execute when deciding what to pursue.
- The stakes are high to pinpoint the optimal application, as 71% believe selecting an undesirable use case will hurt their company’s market position. Nearly 60% admit that advocating for the wrong use case could endanger their job security.
Dive Insight:
The recent waves of AI have added a sense of urgency to most longtime IT gripes, from data dilemmas to project prioritization.
“You can’t tackle it all,” said Sorin Hilgen, chief digital officer and in-country CIO at EG America. “Nobody has unlimited resources.”
Overloading a business with AI projects has consequences. IT pros report AI project delays of up to six months as organizations grapple with budget constraints, skill shortages and computing availability, according to a Civo report published in January.
AI project failure rates are also on the rise, with many businesses stuck in pilot purgatory. CIOs who can identify AI success stories — and suss out when AI is not the answer — are a vital asset to their businesses.
How enterprises decide to rank use cases varies.
Aflac pursues AI opportunities with an eye on business impact and alignment with broader strategic goals, leaning on its innovation lab to support use case prioritization goals. General Mills has worked to narrow its list of use cases by focusing on areas where value is guaranteed. Executives at Estée Lauder Companies have kept implementation speed and high-value opportunities top of mind when deciding where to aim adoption efforts.
EG America, which operates Cumberland Farms, Kwik Shop and several other convenience retailers, tackles use cases with the highest business value first, aligning that with resources and expected timelines.
But technology leaders alone shouldn’t hand down the decree, Hilgen told CIO Dive.
“It’s a collaborative decision between IT and the business,” Hilgen said. “Obviously, we have a strong say in that, simply because of the technology capabilities and deliverables, but it’s not technology for technology’s sake.”
Disclosure: Informa, which owns a controlling stake in Informa TechTarget, the publisher behind CIO Dive, also owns Enterprise Strategy Group. Enterprise Strategy Group has no influence over CIO Dive’s coverage.
