Why Infusing AI Into IT Operations Is More About The Data Than About AI Itself
Why Infusing AI Into IT Operations Is More About The Data Than About AI Itself
IT Data Solutions
Almost every CIO I talk to boldly claims their enterprise is a “data-driven enterprise.” However, a recent Global CEO outlook by KPMG survey tells a completely different story: 67% of the CEOs worldwide (that number jumps to 78% in the US) suggest that they ignored the data-driven analytic and predictive models provided by their CIO/IT teams because it contradicted with their own experience; and they made major enterprise decisions based on their intuition.
CEOs who have overlooked data-driven insights to follow intuition instead
SOURCE: 2018 GLOBAL CEO OUTLOOK, KPMG INTERNATIONAL
While the results are somewhat shocking, it can be easily explained. Firstly, though the enterprises are producing more than enough data, the data is still very fragmented between BUs, domains, platforms, and implementations (such as cloud vs private data center). According to Forrester, up to 73% of company data is unused for analytics and insights. No wonder the CEOs were getting awful results with models that were produced by using only 27% of the total data! Secondly, most of the current predictive models use only the historic data and not the streaming (real-time) data. These two important factors lead to predictions without high accuracy. CEOs can’t make decisions if they can’t trust the models, as their business’s success or failure depends on the decisions they make.
More data leads to better predictions
Though it was IT Operations that kept the other enterprise AI initiatives running smoothly, implementing AI to better their own operations was slow. One reason for that was the fragmented data as above. When you feed AI/ML models with partial data, you will get only a partial view of the enterprise. Another major reason is because most of the current AI/ML implementations are for innovation and are funded by BUs generally. Enterprises traditionally viewed IT as a cost center so they were not willing to spend money to improve the operations using AI. But, with a ton of data, and with the current pandemic producing even more unconnected remote data, that perception changed when it started to overwhelm the Ops teams. The IT Operations teams are reaching a tipping point, having too much data to handle, which is an ideal scenario for AI. This is a sweet spot for AI and ML. AI thrives on lots of data. In fact, the more data is fed to the AI algorithms, the better the models can be.
