Boston Consulting Group (BCG) has found a widening chasm separating an elite of AI masters from the majority of firms struggling to generate any value from their AI investments.
A study from BCG found that a mere five percent of companies are successfully achieving bottom-line value from AI at scale. In sharp contrast, 60 percent are failing to achieve any material value, reporting only minimal gains despite making substantial investments in the technology.
“AI is reshaping the business landscape far faster than previous technology waves,” said Nicolas de Bellefonds , a managing director and senior partner and global leader of BCG’s AI efforts, and a coauthor of the report.
“The companies that are capturing real value from AI aren’t just automating—they’re reshaping and reinventing how their businesses work. And they’re pulling away.”
Top-performing organisations, which BCG labels “future-built,” aren’t just succeeding; they are creating a formidable and widening AI value gap. They already generate 1.7 times more revenue growth and 1.6 times higher EBIT margins than the lagging majority. This elite group has moved beyond isolated experiments to fundamentally reinvent their operations, driving shareholder returns through revenue increases and measurable workflow improvements. The remaining 35 percent of companies are making efforts to scale up but admit they are not moving fast enough to keep pace.
Future-built companies, having reaped early rewards, are now reinvesting their gains to pull even further ahead. They plan to spend 26 percent more on IT and dedicate 64 percent more of their IT budget to AI in 2025. This results in an overall AI investment that is 120 percent higher than their slower competitors.
As a consequence, future-built companies expect to see double the revenue increases and 1.4 times greater cost reductions from their AI applications. For the laggards, who lack foundational capabilities and generate almost no value, this creates what BCG calls a “vicious cycle of losing ground.”
A key reason for this disparity is a failure of leadership. Among lagging firms, top management often delegates AI strategy to middle or lower management, fails to articulate a clear vision for value from investments, and spreads resources too thinly across disconnected initiatives.
The secret to success lies in a proven playbook followed by the leading five percent. These firms approach AI as a board and CEO-sponsored multiyear programme with ambitious, clearly defined targets.
Nearly all C-level leaders in future-built organisations are deeply engaged with AI, compared to only eight percent in lagging companies. They foster a model of shared ownership between business and IT departments, a practice they are 1.5 times more likely to adopt than their peers. One senior retail executive told BCG they “concentrate in particular on senior sponsorship and ownership of AI benefits by the businesses, which creates the room to…
Source link
Disclaimer
We strive to uphold the highest ethical standards in all of our reporting and coverage. We blogs.grocliq.com want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.
Website Upgradation is going on for any glitch kindly connect at [email protected]