Artificial intelligence actually creating jobs, says Capgemini report
Consulting services leader, Capgemini, has announced the results of a study of over 1,000 organisations with revenues exceeding $500mn that are implementing AI, and what changes that has made. The research in ‘Turning AI into concrete value: the successful implementers’ toolkit’ shows that businesses need not fear loss of jobs, as 83% of respondents say AI has actually generated new roles, and also highlights growth opportunities; 75% of firms have seen a 10% rise in sales as a direct result of AI.
Thanks to AI, businesses are creating more senior level jobs, and there is evidence to show that AI is creating a means of reducing the time employees spend on administrative tasks, allowing them to deliver more value. 71% of organisations have initiated upskilling/reskilling of employees to deal with the complexities of AI, and 88% say intelligent machines are coexisting effectively with humans.
“What we really want to do is to use humans to the best of their capabilities,” said Michael Natusch, Global Head of AI at Prudential. “AI is taking away the time humans previously spent on repetitive issues and allowing them to focus on where human intelligence can drive value – for both themselves and for customers.”
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The customer experience is a big focus of AI adopters: 73% think it can increase customer satisfaction scores and 65% believe it could reduce future customer churn. However, the research also indicates that many organizations have yet to align their AI investments with business opportunities.
Ron Tolido, Chief Technology Officer for the Insights & Data Practice at Capgemini, said, “AI has the capacity to revolutionise every business in every market sector; its potential is broad and unlimited. However, we are seeing a large contrast between those who are rolling out applied AI solutions at scale and reaping tangible business benefits, versus those who are simply trialing the technology.
“It’s also quite revealing that organizations are focusing more of their efforts on the more complex AI projects and missing out on simpler projects that could drive quicker returns. Organisations, especially those not yet implementing AI at scale, should focus on those low-complexity, high benefit projects to quickly and better leverage the power of AI.”
As organisations look to harness the power of AI, they will face a range of challenges, and will need to have a clear view of where AI can create the most enduring advantage for themselves and their customers. The report concludes by setting out key steps to get started in implementing AI, including:
- Manage the key technology and people challenges
- Pinpoint where AI can create the most significant, long-term advantage
- Combine top-down vision with bottom-up execution
- Prepare the organisation.
A copy of the report can be downloaded here.
Start-ups receive $60 billion investment, smash 2020 record
Start-ups on the continent have raised a massive 43.8 billion euros ($60.9 billion) in just the first six months of 2021, according to figures from Dealroom, surpassing the record 38.5 billion euros invested last year..
This is despite the fact that the number of venture deals signed so far is around half the amount agreed in 2020. Only about 2,700 funding rounds have been raised so far this year, compared to 5,200 last year.
Prime examples in times of change
Examples are Swedish buy-now-pay-later firm Klarna which has raised more than $1.6 billion in two financing rounds, the German stock trading app Trade Republic received $900 million in May and British payments provider Checkout.com snapped up $450 million at the start of the year.
The figures suggest that European tech firms are pulling in far larger sums of money per investment than in previous years, which defies the economic uncertainty of the pandemic and boosted online services enormously.
The CEO of Checkout.com, Guillaume Pousaz, said start-ups have often been created in times of crisis, citing the emergence of several new financial technology companies in the wake of the 2008 global financial crisis.
He added that big transformational change was often the time when there is the emergence of a lot of new start-ups, sometimes when people are losing their jobs for associated reasons.
UK leading the charge
Scale-Up Europe, a group that includes the founders of UiPath and Wise, proposed 21 recommendations to help the region build “the next generation of tech giants.” Among the suggestions are tax credits to corporates for investing in start-ups and regulatory changes that adapt to new innovations.
Sebastian Siemiatkowski, CEO of Klarna, said the U.K. leads Europe when it comes to tech policy, and that there were a number of regulatory issues needing to be addressed before the European Union can produce tech giants of its own.
Siemiatkowski highlighted EU regulation of web cookies as an example of “poor regulation.” Yet, as the number of $1 billion start-ups in Europe continues to grow, the number of exits in the continent is also increasing.
This year has already seen some notable acquisitions, including Etsy’s $1.6 billion purchase of U.K. fashion resale app Depop and JPMorgan’s takeover of London robo-advisor Nutmeg.
As for stock market listings, a number of notable debuts have taken place in London in particular, including food delivery app Deliveroo, cybersecurity firm Darktrace and reviews site Trustpilot. Money transfer giant Wise, formerly known as TransferWise, plans to go public in the U.K. capital soon.