Entreprise AI Deals Up 📈, Satisfaction Down 📉

Despite growth in AI, enterprises aren’t impressed. Here’s what’s happening.

Author

Cagri Sarigoz
September 19, 2024

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AI and automation enterprise satisfaction declines despite growth 📉

TL;DR

The latest ISG Star of Excellence™ report for Q2 2024 reveals a paradox: while the adoption of AI and automation services continues to grow, enterprise satisfaction is declining. This trend offers both challenges and opportunities for service providers.

Key Highlights

  • More AI Deals, Lower Satisfaction: Despite increased adoption, AI and automation services (“Intelligent Automation” on the chart above 👆) received lower customer satisfaction scores compared to other technologies, signaling a gap between expectations and reality.

  • Top Performers: Business Process Outsourcing (BPO) services received the highest customer experience (CX) scores, with Marketing Technology leading the way. This highlights the ongoing importance of effective digital transformations.

  • Emerging Technology Struggles: Emerging technologies, particularly Generative AI, received the lowest satisfaction scores. These services often fall short of their promised potential, highlighting a disconnect in delivery.

  • ADM Shines in ITO: In the IT Outsourcing (ITO) segment, Application Development and Maintenance (ADM) services excelled with the highest satisfaction scores, driven by cost-effective transformations.

Why It Matters

The growing disconnect in customer satisfaction amidst rising AI and automation deals exposes service providers to a risk: failing to meet high expectations can lead to client attrition.

However, bridging this gap offers a competitive advantage, emphasizing the need for continuous improvement and strategic partnerships.

📰 On the News

Headlines & Launches 📣 

Hewlett Packard Enterprise (HPE) received an upgrade from Bank of America thanks to its strong stance in AI and expected cost reductions. The emphasis on strategic cost-cutting highlights opportunities for improved operational efficiency and market positioning.

Workday has launched the AI-driven platform named Illuminate, designed for HR and finance. With specialized AI agents like Recruiter and Expenses, and the Workday Assistant, tasks like writing job descriptions and expense reporting become more efficient.

Research & Innovation 🧪

AI's growth drives data center energy efficiency, led by Nvidia's AI chips. Innovations like liquid cooling and strategic placement in renewable energy-rich areas further optimize energy use and environmental impact.

A new AI model developed by Massachusetts General Hospital can accurately spot overlooked vertebral fractures on chest X-rays, crucial for early treatment and cost savings. Tested with Annalise.ai's triage software, the AI showed high sensitivity (89.3%) and specificity (89.2%), surpassing FDA benchmarks.

Miscellaneous 🎁

California State senator has enacted two bills safeguarding actors' digital likenesses from AI exploitation. The laws mandate explicit contract terms for AI-generated replicas and prohibit commercial use of deceased performers' digital replicas without estate consent. These protections align with SAG-AFTRA's advocacy and set a precedent for other industries.

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Thanks for reading,

— Cagri Sarigoz

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