- Almost all companies will maintain or increase spending on AI over the next 1-2 years, says Snowflake
- Only one in four have a clear framework for using AI to achieve business goals
- “Governance, data and clear accountability” is what is missing
New research from Snowflake has claimed that almost half (45%) of UK organizations have already reported small to modest productivity gains from AI tools, and around a quarter (23%) have achieved these gains at scale.
However, there is a stark difference between the top and the bottom, and those who fail to join in risk being left behind as the entire landscape evolves.
But with only 1% planning to reduce AI spending by two over the next year, money is not the issue. Neither is technology: Snowflake says most barriers come from within.
Article continues below.
Are companies to blame for the low return on investment in AI?
Snowflake’s report explains how poor data quality and organizational silos are blocking strong AI adoption on the technology front, while skills shortages and a lack of clear leadership and strategy are holding companies back on the people front.
At the moment, only one in four (24%) use a clear framework to help AI achieve their business objectives, while ethics and security are shaping how two-thirds of organizations are implementing AI.
However, these trends are not general, as certain industries face more challenges than others. Financial services must endure strict regulation and retail is lagging behind due to data issues.
“Belief alone is not enough,” wrote chief data strategist Jennifer Belissent. “Productivity gains require clear ownership, strong databases, and alignment between AI initiatives and measurable business objectives.”
Snowflake’s data makes it clear that technology is not so much the problem: execution is where the real challenges lie. The company demands better databases, clear governance by leaders, and continuous upskilling of workers.
“Unlocking that potential depends on getting the fundamentals right: governance, data and clear accountability,” Belissent concluded.
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