Business models need to be transformed to unlock AI's true potential, IBM senior VP says | Fortune
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Business models need to be transformed to unlock AI's true potential, IBM senior VP says | Fortune
"AI has the potential to boost productivity within organizations, but only once business models have been transformed, according to Ana Paula Assis, senior vice president and chair of EMEA and growth markets at IBM. Assis told the audience at the Fortune Global Forum in Riyadh that exploring the full potential of AI means adopting "a systemic approach" to the technology: "One that embraces pervasive implementation across the organization; one that integrates silos; one that moves from just experimentation and isolated pilots to corporate-wide adoption," she said."
"According to IBM research cited by Assis, two-thirds of EMEA leaders are already seeing a positive impact from AI in productivity initiatives. Saudi leaders claimed they were seeing the largest positive impact, with 84% of leaders in the region citing AI's positive impact. However, while a majority of companies are investing rapidly in AI, some have struggled to get the technology past the pilot phase."
"In the past year, the number of companies running entire workflows with AI has almost doubled, while overall workplace use of the tech has also doubled since 2023. However, a recent MIT Media Lab study found that 95% of the organizations using AI weren't seeing a clear return on those investments. This was partly attributed to a so-called learning gap-people and organizations not understanding how to use the AI tools properly, rather than an problem with the core technology itself."
Businesses must transform operating models to unlock AI's full productivity potential through a systemic, organization-wide approach that integrates data, technology, and trust. Many companies are rapidly investing in AI and moving from pilots to broader use, with some regions like Saudi Arabia reporting particularly strong perceived productivity gains. Despite increased adoption and more workflows running with AI, a large share of organizations are not seeing clear financial returns. The gap is linked to limited integration, complex corporate structures, and a learning gap in how people and organizations use AI tools effectively.
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