In the last 30 years, we have seen computerization completely transform the way companies collect and pull insights from data. Technology not only optimizes these practices, but thus increases the value of the products that the companies are churning out. However, when one looks more closely at the breakdown of areas these companies are spending on, they haven’t changed much over the past few years.
As AI and Internet of Things (IoT) technologies are becoming increasingly available, Japanese financial institutions are responding with increased investment in those technologies as part of their IT infrastructure. According to NRI’s annual survey of CIOs in Japan, the biggest motivator of this interest is as a means of keeping up with the rapid growth of technology and striving to improve operating efficiency.
In a survey of over 500 CIOs, NRI found that, between 2015 and 2017 the percentage of companies that adopted AI/machine learning technology increased from 2.8 percent to 8.9 percent. However, the number of CIOs that were interested in or planning to adopt AI/machine learning solutions jumped over 20 percent, from 35.6 percent to 58 percent.
Machine Learning and AI technologies, including robotic process automation, has experienced significant growth in the last few years, and companies investing in those technologies are growing alongside them. This can likely be attributed to the corporate focus on improving efficiency and to operate manual processes, reducing processing costs as well allowing for greater transaction volumes to be processed.
Although these changes come with minimal risk, the business reforms to create more values for customers entail higher risk and more uncertainty. It therefore requires commitment and leadership from top executives. To fulfill a company’s front-line mission with new technologies, it is necessary for top management to get involved more.
You can read more in the latest update from NRI IT Researcher Yuki Ariga.