Many companies are still not seeing a significant impact from their AI efforts. Some experts say it may be because they don’t embrace what’s called “organizational learning.”

It is not enough to use AI to optimize a business process, for example to make better predictions or automate a human task. Companies need to go further, learn from their AI projects and use them to transform their organizations.

While most, if not all, organizations would say they learn from their successes and failures, few have formal processes to embrace these learnings and disseminate them throughout the organization, especially when it comes to use. of AI. As a result, only 11% of companies saw significant benefits from their AI initiatives in 2020, according to a recent MIT Sloan Management Review report produced in collaboration with Boston Consulting Group.

Take, for example, scoring loan applications, most of which involves tedious manual data entry by loan officers. Using AI or machine learning can dramatically optimize the process, reducing costs and the need for so many loan officers on staff. But companies can’t save a lot of money, and employees are reluctant to support projects that could cost them their jobs.

Meanwhile, AI can also be used to glean new information from that same loan application data. A bank could, for example, discover underserved customer segments, which could lead to a dramatic expansion of the business. Or a bank might find that people were afraid to apply for loans because they feared damaging their credit rating, says Sam Ransbotham, professor of information systems at Boston College’s Carroll School of Management and co-author of the report. MIT Sloan. Offering them the option of a risk-free assessment that does not affect their credit rating could change that.

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