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Saturday, Dec 2, 2023
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

AI and Autonomy

Majority of tech executives say AI will boost industry efficiency by 25% in 2 years: MIT and Databricks

1/3 of survey respondents said it would enhance efficiency in their industries by at least 50 per cent

Majority of tech executives say AI will boost industry efficiency by 25% in 2 years: MIT and Databricks
'Every industry will be transformed with AI,' said J.P. Morgan's Head of Global Tech Strategy to Databricks' CEO Ali Ghodsi at the Data + AI Summit in San Francisco this year. Photo via Databricks

Experts have predicted that AI will unleash a new wave of productivity and potentially add trillions of dollars in value across various industries, according to the conclusion of a new survey study by the Massachusetts Institute of Technology and software company Databricks.

Notably, the survey report released on Thursday titled “Laying the foundation for data and AI-led growth” found that 81 per cent of tech executives who responded believed that artificial intelligence would boost efficiency in their various industries by at least 25 per cent within the next two years. One third of them said that AI would increase efficiency by at least 50 per cent.

The survey was conducted among 600 chief information officers (CIOs), chief technology officers, chief data officers and others active in various industries within major agencies, companies and organizations. These include the United States Transportation Security Administration, General Motors Co. (NYSE: GM), Condé Nast, ADP (NASDAQ: ADP), Razorpay Software, Dell Technologies Inc (NYSE: DELL), the Regeneron Genetics Center and Starbucks (NASDAQ: SBUX).

About 46 per cent of respondents said they would be increasing their AI budgets by more than 25 per cent within the next year. Eighty eight per cent of surveyed companies are utilizing generative AI while 62 per cent are experimenting with it and 26 per cent will be investing in it and adopting its use.

“We are at an inflection point with AI adoption and CIOs are doubling down on their investments to ensure they have the right technology and talent in place to reap the efficiencies of AI democratization,” said Databricks’ Chief Information Officer Naveen Zutshi.

Read more: Dominos Pizza to use Microsoft AI for streamlining operations

Read more: Visa establishes US$100M generative AI venture fund

Lakehouse software is highly beneficial

Sixty per cent of respondents said it was very important that a single governance model for AI and data was established for security and privacy reasons. The survey was conducted throughout 12 countries in four continents and eight different industries.

The report found that almost 75 per cent of surveyed organizations had adopted the Lakehouse cloud data management software from Databricks and that the ones who hadn’t planned to within the next three years. Ninety-nine per cent of respondents utilizing the software said it was helping them achieve their data and AI goals, according to the report.

“With advances in AI and machine learning and the investments we’ve made, we’re better able now than a few years ago to create efficiencies,” said Jon Francis, Chief Data and Analytics Officer at General Motors.

MIT Technology Review Insights, responsible for publishing the report and founded in 1899, is one of the world’s oldest technology magazines.

Databricks has been making significant investments in AI technology in recent days, such as its US$1.3 billion acquisition of the San Francisco startup MosaicML and its large language model platforms announced at the end of June.


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