Source URL: https://www.theregister.com/2024/09/09/gartner_synmposium_ai_opinion/
Source: The Register
Title: AI bills can blow out by 1000 percent: Gartner
Feedly Summary: Preventing that is doable, but managing what happens when AI upsets people is hard
Organizations adopting AI need to learn how to manage the emotional and monetary costs the tech creates, while also worrying about capturing productivity benefits, according to analyst firm Gartner.…
AI Summary and Description: Yes
Summary: The text presents insights from Gartner analysts regarding the challenges organizations face when adopting AI technologies, particularly relating to cost management and productivity implications. The discussion emphasizes the potential for excessive AI-related expenses and the emotional responses that AI may provoke among employees, stressing the need for careful strategizing around AI’s benefits and organizational dynamics.
Detailed Description:
The discussion revolves around the critical assessment of AI adoption in organizations, highlighting several key considerations that are essential for successful implementation:
– **Financial Implications**:
– Organizations often encounter unexpectedly high costs associated with generative AI, similar to the initial shock of cloud computing billing.
– Gartner warns that inaccuracies in AI cost predictions could lead to cost estimates being off by 500 to 1000 percent.
– Vendor price hikes and inadequate attention to resource utilization can contribute to these cost overruns.
– **AI Utilization**:
– There is a caution against the inappropriate use of AI, such as using complex AI solutions for simple queries that could be handled through basic search capabilities.
– The structure of AI’s access to data significantly affects costs—using unstructured data can yield better results but may incur higher expenses.
– **Productivity Concerns**:
– The concept of “productivity leakage” is introduced, where the time saved using AI does not necessarily translate to increased work output; employees may choose to utilize saved time for personal tasks rather than enhancing productivity.
– The productivity benefits of AI are not uniformly experienced within organizations. For instance, new employees may see a significant boost in efficiency from AI tools, while seasoned workers may not benefit as much and could even feel threatened by the technology’s influence on job performance.
– **Emotional and Cultural Impact**:
– The analysts note that AI adoption could stir emotional responses among staff, with potential resentment towards AI from experienced employees who may feel overshadowed by less experienced, AI-assisted coworkers.
– As organizations deliberate on AI adoption, they need to consider emotional factors and decide on their pace of implementation—whether to adopt a “steady” approach for gradual integration or an “accelerated” approach for rapid adaptation and competitive advantage.
– **Overall Recommendations**:
– Organizations should evaluate their current landscape and tailor their approach based on their specific circumstances, recognizing that they compete on their terms rather than simply following vendor trends.
In conclusion, the text underscores the necessity for organizations to strategically approach AI adoption while managing financial implications, addressing workplace dynamics, and considering the emotional responses it may provoke. For security and compliance professionals, understanding these factors can inform the governance frameworks necessary in overseeing responsible and efficient AI use within their organizations.