Vendors are starting to "AI wash" their portfolios: Gartner

Market hype and growing interest in artificial intelligence (AI) are pushing established software vendors to introduce AI into their product strategies, creating considerable confusion in the process, according to Gartner.

AI refers to systems that change behaviours without being explicitly programmed, based on data collected, usage analysis and other observations. While there is fear that AI will replace humans, the reality is that today's AI and machine learning technologies can and do greatly augment human capabilities. Machines can actually do some things better and faster than humans, once trained; the combination of machines and humans can accomplish more together than separately.

In January 2016, the term "artificial intelligence" did not even make it to the top 100 search terms on the Gartner website, the research firm said. By May 2017 however, the term was ranked 7th, indicating interest from Gartner clients in understanding how AI should be part of their digital business strategy.

This interest has driven a process similar to "greenwashing", in which companies exaggerate the environmental-friendliness of their products or practices for business benefit. Many technology vendors are now "AI washing" by applying the AI label a little too indiscriminately, according to Gartner. This widespread use of "AI washing" is already having real consequences for investment in the technology, the research firm said. 

"As AI accelerates up the Hype Cycle, many software providers are looking to stake their claim in the biggest gold rush in recent years," said Jim Hare, Research VP at Gartner. "AI offers exciting possibilities, but unfortunately, most vendors are focused on the goal of simply building and marketing an AI-based product rather than first identifying needs, potential uses and the business value to customers."

Gartner says that by 2020, AI technologies will be virtually pervasive in almost every new software product and service. Gartner further predicts that by 2020, AI will be a top five investment priority for more than 30% of CIOs.

To successfully exploit the AI opportunity, technology providers need to understand how to respond to three key issues, Gartner said:

1) Lack of differentiation is creating confusion and delaying purchase decisions

The huge increase in startups and established vendors all claiming to offer AI products without any real differentiation is confusing buyers. More than 1,000 vendors with applications and platforms describe themselves as AI vendors, or say they employ AI in their products.

To build trust with end-user organisations vendors should focus on building a collection of case studies with quantifiable results achieved using AI.

"Use the term 'AI' wisely in your sales and marketing materials," Hare said. "Be clear what differentiates your AI offering and what problem it solves."

2) Proven, less complex machine-learning capabilities can address many end-user needs

Advancements in AI, such as deep learning, are getting a lot of buzz but are obfuscating the value of more straightforward, proven approaches. Gartner recommends that vendors use the simplest approach that can do the job over cutting-edge AI techniques.

3) Organisations lack the skills to evaluate, build and deploy AI solutions

More than half the respondents to Gartner's 2017 AI development strategies survey* indicated that the lack of necessary staff skills was the top challenge to adopting AI in their organisation.

The survey found organisations are currently seeking AI solutions that can improve decision making and process automation. If they had a choice, most organisations would prefer to buy embedded or packaged AI solutions rather than trying to build a custom solution.

"Software vendors need to focus on offering solutions to business problems rather than just cutting-edge technology," said Hare. "Highlight how your AI solution helps address the skills shortage and how it can deliver value faster than trying to build a custom AI solution in-house."

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*Online survey from April 5-21, 2017 among Gartner Research Circle members, a Gartner-managed panel comprising IT and business leaders. In total, 83 members completed the survey.