UK firms that are integrating AI into their operations are making over £9 million more than those that are not, according to a recent study.
The study reveals that in terms of annual revenue, businesses that adopt AI are recording an average 152% extra compared to their counterparts that are slow to adopt the technology.
Businesses are using AI to improve customer relationship management, cybersecurity, and fraud management.
Outpacing peers through tech
Embryo, a digital marketing agency, carried out a survey and analyzed the growth trends and financial performance of 3,715 firms in the UK from across 53 sectors. These were compared with another 5.4 million companies within the same sectors that have not adopted AI in their operations.
According to Bdaily News, the study showed “exponential growth of 12.2% for businesses that adopt AI as part of their core offering.”
This was against a 6.5% estimated growth rate recorded for companies that do not use AI in their operations.
According to the report, Embryo collected data from a platform known as Data City, which the UK government uses to collect data on businesses across the country.
“The UK is seeing a transformative shift in the number of businesses adopting AI into their core business functions. We all see this, but in 2024 this is going to increase greatly,” commented James Welch, Embryo’s chief innovation officer.
“Business owners are becoming increasingly aware of AI’s capabilities and its game-changing potential to accelerate growth and boost revenue efficiently,” he added.
AI has generally been viewed as a game changer. Businesses and governments are banking on its transformative abilities for economic upturn. Generative AI for instance, has grown exponentially in the past year, allowing people with no professional skills to create music, prose, poetry, videos, and write books using the technology.
Prospects are bright with AI
Businesses and governments are expected to continue tapping into the technology to optimize operations, which will also drive the AI sector. According to iShares, 74% of executives expect to increase on AI resourcing to optimize operations.
“As more companies become educated on the benefits, the data we have found suggests that this trend will gain even more momentum in years to come. That momentum will not be linear,” said Welch.
The report further reveals that the number of companies that are adopting AI into their operations is continuously increasing, and the year-on-year growth of 12.2% margin is expected to keep rising. This comes as more businesses are seeing the benefits of AI, as adoption of the tech is seeing them “exponentially outpacing” those that don’t.
This, according to Embryo, is evidence that businesses are taking advantage of the growth opportunities that AI adoption brings to their operations.
Experts have also noted that more AI-focused roles are likely to emerge across sectors this year and going forward, which could spell a major shift for companies’ financials and structures.
Also read: The US Is Not Doing Enough To Get Ready For The Impact Of AI: Andrew Yang
Accessing AI
The increase in AI adoption by businesses also comes as technology is increasingly becoming accessible the world over, allowing firms to automate processes and helping them “to enhance their overall performance and competitive advantage, leading to rapid growth.”
According to the report, out of the 3,715 firms surveyed, the ‘data analysis’ industry topped other sectors, accounting for 41% of the total firms surveyed.
‘Machine learning’ came in second, accounting for 31% of the surveyed firms.
“The automation of routine tasks, advanced data analytics, and machine learning algorithms allow companies to make informed decisions, streamline processes, and significantly increase their revenue streams,” said Welch.
“2024 and the next few years will see AI seep into more areas of business and will almost certainly become useful in areas we have not yet even contemplated.”
According to Forbes, many companies are using AI to minimize safety risks, process automation, and idea generation.
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