To maximize the potential of artificial intelligence, businesses must focus on long-term strategic value over immediate returns. In an article by Frank Palermo, Executive Vice President, of Global Digital Solutions at Virtusa, titled "Elusive AI ROI Doesn’t Mean the Bubble Will Burst”, he explores the surge in AI funding and the challenges companies face in proving return on investment.
Palermo emphasizes that while AI investments are rapidly accelerating across industries, with businesses and venture capitalists funneling billions into AI technologies, nearly half of AI adopters struggle to demonstrate value. He compares this phase to the early days of cloud adoption, where the long-term benefits eventually outweighed initial doubts about ROI.
Capitalizing on AI requires a thoughtful, strategic approach. Rather than chasing short-term gains, companies should focus on building AI solutions that deliver sustainable, long-term benefits. Despite concerns, Palermo highlights how, like previous technological breakthroughs, AI’s potential lies in its ability to create lasting value once more use cases mature and strategic priorities shift.
Read more about how businesses are navigating the current AI landscape and the steps needed to ensure AI investments provide substantial, long-term impact.