AI made massive inroads into business operations in 2023 but there is still a long way to go in adopting the technology, according to the 2024 Certinia Global Services Dynamics report.
The report – which surveyed 1,005 businesses globally including 17% from Australia – said making the most of AI is seen as just as big an issue for professional services businesses as the global economy.
The “2024 Certinia Global Services Dynamics” report can be downloaded free, here.
And these businesses have high hopes that AI will deliver with 81% believing it will increase their efficiency and 65% increase profitability.
However, the report says that while AI promises new approaches to running businesses, the use cases that provide tangible benefits are still revealing themselves. “Moreover, most professional services organisations are not yet technically mature enough to leverage AI.
“Disconnected spreadsheets, siloed systems, and unstructured data are all impediments to deploying AI across information it can learn from to provide meaningful insight. If AI is the answer to the efficiency concerns of professional services teams, the question will be who has the technical maturity to adopt.
“And while economic uncertainty is largely out of an organisation’s control, developing economic resilience can be achieved through thoughtful business design and efficient business processes.
“These structures and processes, however, will be put to the test as AI use cases mature. To thrive, organisations must assess their AI maturity and identify the skills, resources, and tools needed to ensure AI is a competitive strength and not an existential threat.”
Greg Smith, Head of Global Product and Solution Marketing at Certinia, said the fact that AI and the economy were on an equal footing is intriguing.
“Apart from eight out of 10 expecting AI to increase efficiency, 68% believe they will increase service quality and 53% help create new service offerings. Fortunately, fewer than one-third believe AI will cause them to reduce staff.”
In regards to staffing, the report highlighted several issues including:
· 45% would look at training staff specifically on AI/ML (48% in Australia) and 43% on other technology skills (37% in Australia)
· 37% would look at hiring staff with AI/ML skills (32% in Australia) and 39% hiring staff with other technology skills (36% in Australia)
Holding on to their current employees was also important with nearly half (45%) saying this was a focus (44% in Australia and highest in Singapore at 42%).
Australian businesses mirrored much of the global issues with:
· Efficiency: 77% believing AI will deliver greater efficiency, slightly less than the global average of 81% but well behind the US at 82%
· Jobs: 28% globally said they expected AI to reduce their staff, with 29% in Australia and 38% in Singapore
· Service quality: Australian businesses had the lowest expectations (58%) when it came to AI increasing service quality – globally it was 68% and highest in Singapore at 76%
The report said that generative AI technologies that help teams spot trends, learn new technologies, and fine-tune their work are becoming increasingly prevalent.
“As organisations mature their data architectures, private learning models that reason across proprietary information will drive more than efficiency gains – they will drive a competitive advantage.
“However, those who continue to manage their operations across spreadsheets and disconnected tools will fall further and further behind.”
The Certinia report surveyed 1,005 participants globally with 17% from Australia. Certinia’s platform is aimed at the professional services sector which continues to be one of the fastest growing segments of the global economy with the industry made up of more than 25 million firms with a combined annual revenue of more than $US8 trillion.
Firms in the professional service industry provide a diverse range of services that include accounting, agency (advertising and marketing), architectural, management consulting, engineering, IT, legal, and research services.
The primary goal of the research is to understand top external and internal challenges facing services organisations over the next 12 months and their strategies to mitigate those issues.
This article was created based on the blog post written by Greg Smith, (pictured below), Head of Global Product and Solution Marketing for Certinia.
You can also see my previous articles on Certinia, including video interviews, at the articles below:
