3
Benefits

Despite the challenges, the advantages of AI adoption are already evident – and go far beyond financial gains.

From challenges to opportunities: How EY and AI work hand in hand

3.

Benefits

How companies can add value by embedding AI into their products is a major topic for managers in all sectors. Delivering convenient and enjoyable experiences, using GenAI to improve chatbots, including virtual try-on, or current checkout-free stores are prominent examples that help make AI success stories and progress tangible and visible. In addition, strategies are often directly linked to revenue generation.

Despite the challenges, the benefits of AI adoption are already evident, most notably as measured by cost savings. However, the narrative surrounding AI benefits needs to be expanded beyond just financial gains.

While cost improvement remains a primary driver, AI also enables organizations to improve decision-making processes, unlock new revenue streams, and raise their employer brand value.

First and foremost, what executives invariably want to know is their return on AI investment. Across Europe, almost half of managers (45%) say that AI use has allowed them to save costs, increase profits – or both (see figure 1). Measured by these two criteria, AI deployment to date has been most successful in Switzerland, where 81% of managers have had a positive experience with the technology. The share of satisfied managers is also above average in Spain (60%) and Italy (58%). On the other hand, respondents in the Netherlands, Austria, and Germany (all 34%) are less impressed.

By function, the use cases in which AI has been operationalized vary widely, from streamlining supply chain operations to optimizing marketing strategies and enhancing customer experiences. At present, organizations are seeing the greatest benefits in IT (35%), followed closely by marketing (30%) and cybersecurity (27%). Interestingly, legal and compliance departments see little scope for AI implementation at present (see figure 2). That said, with little more than initial inroads made so far in AI implementation and operationalization, most eyes are still fixed on future iterations of the technology.

Aside from cost and efficiency improvements, embracing AI allows businesses to automate repetitive tasks, freeing up employees to focus on more strategic and creative endeavors. Indeed, most respondents expect artificial intelligence to take over parts of their work (65%), with some anticipating that they’ll be handing over some of their workload to AI in the very near future (14%). If they get it right, organizations have a tremendous opportunity to leverage AI to enhance job descriptions. A shift toward more intellectually stimulating work profiles would not only improve employee satisfaction but also enhance employer branding, attracting top talent in a fiercely competitive labor market. That said, all stakeholders need to address legitimate concerns about job displacement, an issue we investigate in the following section.

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