Over
90% of enterprises are currently experiencing limitations integrating AI into
their tech stack, according to new research released by Tray.io, creator of the AI-powered, multi-experience iPaaS. Almost
three quarters of companies (73%) report that more than half of the apps in
their tech stack have AI capabilities or AI-augmented features, and 96% plan to
use these features to improve process efficiency and employee productivity,
increase customer satisfaction rates and reduce costs. However, this rapid
proliferation of AI within existing SaaS apps is causing significant
integration pains, including challenges with provisioning and on-going management,
lack of AI implementation frameworks and issues surrounding change management
within the organization. Further complicating the issue, there is a stark
disconnect between executives and practitioners in regards to AI implementation
strategies. Almost half of enterprise executives (48%) indicate that their
organization's AI implementation strategy for the next year is focused on
building strong integrations between their internal SaaS apps and AI, while
close to 20% of practitioners state their organization doesn't have an AI
strategy as it relates to their tech stack and internal business processes.
With Businesses Swimming in a Sea of SaaS, Lack of Clear and
Aligned AI Integration Strategies Could Hinder Progress
Organizations
face a tech stack doomsday as the wave of AI-enabled SaaS apps threatens
progress. SaaS bloat remains a challenge with 55% of companies reporting that
they have more than 50 SaaS apps in their tech stack and 37% stating they have
more than 100. Compounding this issue, most apps now offer some sort of AI
functionality - 73% of respondents state that more than half of the apps
in their tech stack have AI capabilities or AI-augmented features, and 40% of
respondents plan to use the built-in AI features for more than half of their
SaaS apps.
"Enterprises
embarking on their AI implementation journeys will be challenged with managing
the functionality of dozens of different AI features without causing conflicts
between connected apps and unifying their technical teams while being careful
not to overwhelm them," observed Rich Waldron, CEO and co-founder of Tray.io.
"Properly harnessing the power of AI in a safe and effective way requires
companies to centralize on a solution built for the age of AI, and use it as
the control center where precise decisions can be made about where and how to
infuse AI into business processes for the best outcomes."
Moreover,
there is a disconnect between the C-suite and practitioners when it comes to AI
implementation initiatives. Almost half (48%) of enterprise executives state
that their organization's AI implementation strategy for the next 12 months
will be focused on building strong integrations between their internal SaaS
apps and AI. As part of their AI business process strategy, over half (57%) of
executives intend to use the app-specific AI for each SaaS app in their tech
stack. In contrast, only 32% of practitioners and team leads state this will be
the primary focus for their organization - and almost 20% of practitioners
state their organizations don't have an AI strategy as it relates to their tech
stack and internal business processes.
"While
the Autonomous Enterprise is the desired end state for all organizations, going
down the path of implementing the AI features of every SaaS app will
undoubtedly lead to a new slew of unintended consequences. To move forward with
AI integration in a sustainable way, enterprises will need to centralize on a
single platform that simplifies development and ongoing management," continued
Waldron.
As
businesses work on integrating AI, respondents are currently experiencing
significant barriers, including provisioning and ongoing management, a lack of
implementation frameworks and difficulties handling change management.
Depending on seniority, the top limitations cited are challenges with
provisioning and on-going management, change management within the
organization, processes being too dependent on developers, lack of
implementation frameworks, and AI features being either hard to experiment and
prototype with or too costly and time-intensive to integrate.
While
enterprises build out their AI implementation strategies, data governance and
employee skill sets are top of mind. When implementing AI, organizations cite
managing data governance, compliance, security and trust; lack of familiarity
with AI tooling; and lack of workforce skills and access to employees with
relevant skill sets as the top three challenges.
Additionally,
almost one-third (32%) of executives anticipate encountering employee pushback
as they implement AI in the enterprise.
Enterprises are Optimistic About the Potential of AI to Improve
Efficiency, Enhance Productivity and Boost Customer Satisfaction
Despite
the difficult road ahead, survey respondents report they are optimistic about
the potential impact of AI to revolutionize business operations, with top
anticipated benefits cited as improving process efficiency, enhancing employee
productivity and boosting customer satisfaction rates. IT is universally
identified as the number one practice that can most benefit from the
application of AI, followed by Product Development and Engineering and Customer
Service and Success.
Across
the board, the top three ways respondents plan to personally use AI in their
own roles are:
- Adding AI to
improve or enhance internal business processes for themselves and other
departments
- Using AI to
automate manual work or business processes
- Improving everyday
decision-making for their department
Respondents
indicate that, in the future, they expect AI to enhance their productivity,
simplify daily tasks and facilitate faster decision-making, as well as provide
templates and frameworks that help them improve their job performance.
"The
2024 AI Implementation Strategies in the Enterprise survey not only
sheds light on the current state of AI integration strategies - including the
anticipated benefits of AI and expected challenges - but also emphasizes the
urgent need for a unified solution to address the impending management
challenges companies will face as they integrate AI into their business
processes to increase productivity and gain competitive advantage," concluded
Waldron.