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Good morning.
A prominent scientist once told me that the reason the public rejected GMO food was because its first use case was to make tomatoes that were attractive and long-lasting—but were tasteless. In other words, they helped the grocery business manage its supply chain…but they created no value for the end user.
I worry the new wave of business data technologies may follow a similar path. A new report out this morning from PwC—an early copy of which was shared with CEO Daily—highlights the problem. PwC gave more than 2,000 global executives a long list of new technologies—A.I., IOT, Blockchain, Drones, VR, AR, 3D Printing, etc.—and asked two questions:
– Which of the following technologies is the most important to your strategy today?
– Which of the following technologies will be the most important to your strategy in three years?
The consensus answer to the second question was clear—43% said they believed A.I. would be most important to their business in three years. That was more than double the number who picked the second-place choice (Internet of Things).
But when asked about their strategies today, the top choice was “RPA”—Robotic Process Automation—chosen by 36% of executives, compared to the 19% who chose A.I.
Now that may seem natural—RPA is the low hanging fruit, with a potential for quick savings. But think about it: by definition, RPA doesn’t change anything. It certainly doesn’t reinvent the business, and it doesn’t create new value for customers or society. It just means doing exactly the same thing you are currently doing more efficiently—and with fewer workers.
With that as the common starting point, is anyone surprised workers are scared? In the long term, companies will be better off—and society will be better off—if they made the bold moves now to figure out how this technology can create new value.
“RPA is alluring for its immediacy and simplicity,” says Scott Likens, who heads the emerging technologies practice at PwC. “But it is a short-lived value,” and in many cases “businesses are automating processes that aren’t that good.” He urges companies to invest in A.I. now, ”in very precise spots that make sense.”
You can read the PwC study here. Or, if you are interested in a mind-bending story, try Jeffrey O’Brien’s piece on how psychedelic drugs may revolutionize mental health care, available this morning here.
More news below.
Alan Murray
@alansmurray
alan.murray@fortune.com
