AI, as a true agent of change, is coming, and in many ways, its early rumblings are already being felt. It is clear that some companies will be early adopters while others will wait until their business model is obsolete. Many start-ups have created data-driven cultures from their inception, which is a key reason why large, established firms fear disruption from them.
Where does Luxembourg stand in terms of Data Analytics and AI?
This survey was conducted in May 2019. The questions were aimed at understanding what types of strategy Luxembourg companies currently have in place to manage data, the types of technology they use, and how they are investing to adopt a data-driven culture.
Key points to keep in mind
- Luxembourg companies are still facing many hurdles in terms of data quality, coherence of systems, data processes, and data governance.
- Adopting a true data-driven strategy means that data matters should not be left to a few experts who are in charge of producing reports; instead, companies should ensure data visualisation tools are widely spread throughout the company and used by employees at all levels of the organisation.
- The route to AI will be long and full of stumbling blocks. But Luxembourg companies should already embrace R&D in the area and start thinking about what they can do with the data they are collecting on a daily basis, instead of waiting for the headquarters to take ownership of this data.
Facing hurdles in the deployment of AI
In Luxembourg, only 23% of companies are currently using AI. The human factor is by far the biggest hurdle, the financial factor being the second-largest obstacle.
Main reasons for not deploying AI in Luxembourg
"The AI journey starts with your people. The capacity of employees, especially younger generations, to embrace the AI revolution is underestimated. Organisations should upskill their employees - all of them - and trust them to innovate."
Invest in people
One of the approaches that firms have established to deal with data-driven disruption and change is to establish new management roles.
Data-processing positions in place within Luxembourg companies
Embracing the data revolution
- Luxembourg companies have made efforts in recent years to embrace data-privacy rules and have reached suitable maturity in that area;
- however, maturity remains lower in the areas of data analysis and data architecture, which are the fundamentals of AI;
- many companies continue to cope with data-related issues internally and use internal data-cloud solutions;
- the use of AI remains on the fringe (less than 25% of participating companies) - reasons for this low level of deployment are clearly identified and stem mainly from the human factor.
The continuing rise in the importance of data analytics and AI is one of the most striking features of today’s economy and society. The keys to success are to determine how your firm should respond, assign clear responsibilities for data strategy, and then move ahead to execute the required changes systematically and effectively.
Organisations need to take action by upskilling people, setting up a clear governance framework, and investing in expert people to build skilled teams. Most importantly, they should not be afraid to launch initiatives and to test and fail.
Who will play a role in the future of AI?
AI is a gigantic opportunity, and many governments are working to make sure that their countries get a big piece of the pie. To date, more than 20 countries, including Canada, China, France, Germany, India, Japan, Kenya, Mexico, New Zealand, Russia, South Korea, the UAE, and the UK, have released AI strategy documents.
Given the potential for AI to have disruptive social and environmental effects, the development of sophisticated national and international governance structures will become increasingly critical. Perhaps no other emerging technology has inspired such scrutiny and discussion.
We would like to thank PwC France and Usine Digitale for sharing with us the questionnaire and methodology they originally developed to conduct a study on the use of Big Data and Artificial Intelligence by French companies.
Their joint publication can be found on PwC’s website (www.pwc.fr) under the title "Du Big Data à l’Intelligence Artificielle : le défi des entreprises françaises, Novembre 2018".
