5 AI Trends for 2022 and beyond (Research from IBM)

As innovation, ecosystem partnerships, and integrated customer experiences become increasingly important, leaders need to move strategically to stay relevant.

Technology, talent, and trust are top priorities for this coming year. As innovation, ecosystem partnerships, and integrated customer experiences become increasingly important, leaders need to move strategically to stay relevant. The data-driven insights from IBM show us 5 trends that executives can use to prepare for the future and will enable CEOs to deliver growth, digitalization, and efficiency.

1.Digital transformations are critical to business.

60% of organizations sped up their investments in digital technologies due to COVID-19 and more than half (55%) permanently course-corrected their organizational strategies. When asked about their priorities for the next 2 to 3 years, more CEOs said they needed to aggressively pursue operational agility and flexibility (56%) than any other action. They see technology playing a key role in building resilience and adaptability, ranking it the top external force that will affect their businesses in the near term, above regulatory concerns, and market factors. Internet of Things (IoT, 79%), cloud computing (74%), and artificial intelligence (52%) are the top technologies they expect to deliver business results.

2. Human capital is precious and scarce 

The “Great Resignation” is picking up pace and effects millennials. While the virtualization of work has given companies greater access to global talent, this extended reach can only take them so far. Talent management is a zero-sum game. That means companies will need to look within and make changes that will attract potential employees. That starts with showing people their contributions are valuable and prioritizing their wellbeing. After surviving the disruption caused by the pandemic, people now want to work on their own terms, bring their whole selves to work, and feel good about what they produce. In a tight market, top talent will reward the organizations that prove they put employees first.

3. Sustainability and transparency are urgent priorities 

The pandemic influenced 93% of global consumers’ views. Consumers also see that sustainability and wellness go hand in hand. When choosing a brand, 4 in 5 consumers said that sustainability and health and wellness benefits are important to them. And they are willing to put a premium on protecting people and the planet. That means companies need to provide transparent and detailed information about their initiatives if they want to connect with purpose-driven consumers.

4. Tech adoption should reshape business operations 

The research shows that companies across sectors are building the tech capabilities needed to support these types of integrated digital plays. In response to COVID-19, almost 2 in 3 (64%) organizations shifted to more Cloud based business activities. Now, 97% are employing cloud and 78% have at least piloted AI. One study found that high adopters of technology across 13 industries benefit from a revenue premium of 7 percentage points, with the Internet of Things (IoT), artificial intelligence (AI), and cloud yielding the greatest benefit. Those that invested in ecosystems and open innovation saw an average revenue premium of 40%.

5. Trust and security push sustained innovation 

While cloud-based technologies, platforms, and ecosystems expand an organization’s reach and create new opportunities for innovation, they also introduce new threats. IBM’s research revealed that 7 in 10 organizations are unable to secure data that moves across multiple cloud and on-premises environments. The same report found that more than 90% of cyber-related incidents originated in cloud environments. This vulnerability is borne from an inability to adapt security practices to a more open environment, as 92% of organizations lack the ability to securely enable and extend new cloud-native capabilities to their internal and external partners.

Article by Thanisorn Boonchote