88% of Organizations See AI as Key to Competitive Advantage, revealed BML Munjal University’s Industry 5.0 and AI Report

2024-10-21 08:14:31 Technology

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21st October 2024: BML Munjal University, a Hero group initiative successfully hosted the Leadership Summit 2024, where it launched a comprehensive survey report on Industry 5.0 and Artificial Intelligence (AI). The report was chaired by Dr. Richa Mishra, with Dr. Jolly Masih as the co-chair, from the School of Management at BML Munjal University. The report revealed that 88.2% of organizations believe leveraging AI can enhance their competitive advantage. Based on responses from 1,000 professionals and in-depth interviews with 50 industry experts, the report highlights a significant shift in how businesses are integrating AI into their strategies.

Commenting on the same, Prof. Richa Mishra & Prof. Jolly Masih stated: "The survey findings reveal AI's significant potential to enhance competitive advantage and reshape entire industries in the coming years. By embracing ethical practices and prioritizing collaboration between humans and machines, we can unlock AI's full potential and drive innovation across various sectors."

The survey revealed that 44% of organisations have experienced a significant boost in productivity through AI integration. Additionally, 21% reported that AI can play a pivotal role in driving innovation, enabling the development of new products, services and business models, particularly in sectors like finance, healthcare, manufacturing and marketing. In these sectors AI is unlocking opportunities through predictive analytics and personalised customer engagement. AI-driven innovation is transforming various business sectors, with companies prioritizing different functions based on their specific needs. Approximately 33% of organizations focus on product development, while 29% leverage AI for customer service through chatbots and robotic process automation (RPA). Marketing teams, representing 19% of businesses, utilize AI for trend analysis, while 13% apply AI to improve supply chain management. Financial planning, though less prominent (6%), benefits from AI's efficiency-boosting capabilities.

Qualitative interviews with industry professionals reveal that transparency in AI decision-making is crucial, with 21% expressing concerns about the "black box" problem. AI's impact varies by sector; in mergers and acquisitions, 28% have seen benefits in personalized campaigns, but data privacy remains a hurdle for 22%. IT and augmented reality sectors report enhanced productivity (44%) but struggle with talent shortages (34%). In finance, AI improves risk management, though 18% face regulatory challenges. Healthcare has seen advancements in diagnostics, yet ethical concerns remain significant for 18% of professionals. In manufacturing, 23% recognize process optimization benefits from AI, but 21% struggle with legacy system integration.

Prof. Pratik Modi, Dean School of Management stated "As the findings of the report demonstrate the growing significance of ethical AI practices, the Leadership Summit 2024 highlighted the vital role of Industry 5.0, where AI enhances human-machine collaboration. The event provided actionable insights for businesses, stressing the importance of continuous learning, ethical governance, and mentorship initiatives".

While AI has delivered numerous benefits, the report also highlights some key challenges. For instance, 34% of organisations face a critical shortage of AI-trained personnel which hinders their ability to fully leverage AI's potential. This skills gap highlights the need for better AI education and continuous learning programmes. In fact, 31% of organisations have started mentorship initiatives to help develop talent. There are also ethical concerns, with 20% of respondents mentioning algorithmic bias and 22% expressing worries about data privacy. These issues show the need for responsible AI governance, prompting 38.3% of organisations to adopt ethical AI guidelines to ensure transparency.

These issues show the need for responsible AI governance, prompting 38.3% of organisations to adopt ethical AI guidelines to ensure transparency.

As organisations embrace this new era, the report's findings offer a roadmap for integrating AI while prioritizing ethical standards and fostering human creativity. Attendees left with a renewed commitment to leverage AI's transformative potential and tackle challenges related to skills shortages and ethical concerns.

About BML Munjal University

Named after the late Founder Chairman of the Hero Group, BML Munjal University (BMU) is a unique not-for-profit initiative founded by the promoters of the Hero Group. BMU is engaged in creating, preserving and imparting internationally benchmarked knowledge and skills. The University seeks to transform higher education in India by creating a world-class innovative teaching, learning and research environment. It envisions becoming a nursery for the leaders of tomorrow and a repository of knowledge. The School of Management at BML Munjal University has been ranked 72nd among all management institutions in India in the NIRF Rankings 2023. It has also attained the Diamond subject rating by QS I-Gauge. It has been nationally ranked #6 and #1 in Haryana among India's Top Private Engineering & Technology Universities in the Education World India Higher Education Rankings, 2023-24. The University has received an esteemed A-grade accreditation from NAAC.

The University offers undergraduate to doctoral programmes comprising BA (Hons) Liberal Arts, BBA, BCom (Hons), BA LLB (Hons), BBA LLB (Hons), BBA-MBA, Integrated Programme, B. Tech at the undergraduate level, and MBA, LLB and PhD at the postgraduate level.