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The art of AI maturity

Advancing from practice to performance

From insights to action, the path to extraordinary value starts here.


Contents
AI maturity: AI maturity: AI Achievers How AI Practice Appendix
Why it matters What it is advance from Achievers makes
practice to master their progress
performance craft

05 08 13 17 29 35
The art of AI maturity—Advancing from practice to performance 2
Executive summary
In fewer than 70 years, artificial intelligence (AI) has evolved from a
scientific concept to a societal constant.

12%
Computer scientist John McCarthy Despite these ever-expanding use cases, This journey to AI maturity has been in
coined the term “artificial intelligence” when it comes to making the most of AI’s high gear for years. Pre-pandemic (2019),
in 1955, proposing that, “every aspect of full potential and their own investments, AI Achievers already enjoyed 50% greater
learning … can in principle be so precisely most organizations are barely scratching revenue growth on average, compared
described that a machine can be made to the surface. with their peers. And in 2021, among
simulate it."1 executives of the world’s 2,000 largest of firms have
In fact, only 12% of firms have companies (by market capitalization),
Today, so much of what we take for advanced their AI maturity enough to those who discussed AI on their earnings
advanced their
granted in our daily lives stems from achieve superior growth and business calls were 40% more likely to see their AI maturity enough
machine learning. Every time you use a transformation, according to Accenture’s firms’ share prices increase—up from 23% to achieve superior
wayfinding app to get from point A to extensive analysis of approximately 1,200 in 2018, according to analysis by performance and
point B, use dictation to convert speech companies globally. We call them the Accenture.
to text, or unlock your phone using face “AI Achievers.”
growth.

63%
ID ... you're relying on AI. And companies
across industries are also relying on—and Another 25% of firms are somewhat
investing in—AI to drive logistics, improve advanced in their level of AI maturity, while
customer service, increase efficiency, the remaining 63% (the majority) are still
empower employees and so much more. mostly testing the waters.

of firms are still


testing the AI waters.

The art of AI maturity—Advancing from practice to performance 3


What do AI Achievers do differently?
While there’s clearly a science to AI, our findings demonstrate there is also an art to
AI maturity. Achievers are not defined by the sophistication of any one capability,
but by their ability to combine strengths across strategy, processes and people.

Here are five ways AI Achievers master their craft:​

1. Their top leaders champion AI as a strategic priority


for the entire organization.
2. They invest heavily in talent to get more from their
AI investments.
3. They industrialize AI tools and teams to create
a strong AI core.
4. They design AI responsibly, from the start.
5. They prioritize long- and short-term AI investments.

Our machine learning models suggest that the share of AI Achievers will increase
rapidly and significantly, more than doubling from the current 12% to 27% by 2024.

In short, advancing AI maturity is no longer a choice. It’s an opportunity facing every


industry, every organization and every leader.

The art of AI maturity—Advancing from practice to performance 4


The art of AI maturity

AI maturity: Why it matters


AI maturity: Why it matters Figure 1: We project that AI transformation will take less time than digital transformation

There is a growing consensus that AI is absolutely


essential to competitive advantage.
So, it’s no surprise that in 2021, 46%​ The companies leading the way are
of CEOs (of the world’s 2,000 largest already seeing the results—42% said that
companies by market capitalization) the return on their AI initiatives exceeded
mentioned AI on their earnings calls.2 their expectations, while only 1% said the
return didn’t meet expectations.
Our survey of over 1,600 C-suite
executives and data-science leaders
from the world’s largest organizations AI, accelerated
found that nearly 75% of companies have
integrated AI into their business strategies With early successes building confidence
and reworked their cloud plans to achieve in AI as a value-driver, we estimate that AI
AI success. transformation will happen much faster
than digital transformation—on average,
And companies are putting those plans 16 months faster (Figure 1). Source: Accenture Research
into practice: Nearly a third (30%) of Note: Our estimate is derived from a natural language processing analysis of investor calls of
all AI pilot initiatives are subsequently the world’s 2,000 largest companies (by market cap), from 2010 to 2021, that referenced “AI”
scaled to deliver wide-ranging outcomes, and “Digital” in tandem with “business transformation,” respectively. Data was sourced from S&P
from accelerating R&D timelines for earnings transcripts.
new products to enhancing customer
experiences.

The art of AI maturity—Advancing from practice to performance 6


The incentive to move quickly is strong. Figure 2: Evolution of companies' AI-influenced revenue share from 2018 to 2024*
We found, for example, that the share of
companies’ revenue that is “AI-influenced”
more than doubled between 2018 and
2021 and is expected to roughly triple
between 2018 and 2024 (Figure 2).

Given the evidence, it’s easy to see


why companies plan to increase and
accelerate their AI investments. In 2021,
19% of companies dedicated >30% of their
tech budgets to AI development. By 2024,
49% of companies intend to.​

Note: Color indicates the achieved AI-influenced revenue threshold within each time period.
Source: Accenture Research
Note: *2024 = projected

*Definition of “AI-influenced” revenues:​​


a. Sales of existing products and services made possible through better AI-driven insights on customers, supply chain, channels​; b. Sales
of new products and services made possible by human + AI​, c. Higher prices through dynamic pricing ML algorithms. These sales include
some cannibalization and net new revenues. In contrast, this definition is excluding higher efficiencies in production operations thanks to AI.​

The art of AI maturity—Advancing from practice to performance 7


The art of AI maturity

AI maturity: What it is
AI maturity: What it is
If most organizations are racing to embrace AI, why
are some seeing more value than others?
To uncover strategies for AI success,
Accenture designed a holistic AI-maturity
not only in data and AI, but also in
organizational strategy, talent and
AI maturity measures the
framework. Fittingly, our analysis itself was culture—to give companies a strong degree to which organizations
conducted using AI. competitive advantage. (See pages 36
and 37 for key capability descriptions.) have mastered AI-related
We applied machine learning models ​
to unravel massive survey datasets and This includes foundational AI capabilities in the right
uncover drivers of AI maturity that would
have been impossible to detect using
capabilities—like cloud platforms and
tools, data platforms, architecture and
combination to achieve high
more traditional analytical methods
(more on the methodology in
governance—that are required to keep
pace with competitors. It also includes
performance for customers,
the Appendix). ​ “differentiation” AI capabilities, like shareholders and employees.
AI strategy and C-suite sponsorship,
Our research found that AI maturity combined with a culture of innovation
comes down to mastering a set of key that can set companies apart.
capabilities in the right combinations—

The art of AI maturity—Advancing from practice to performance 9


The companies that scored best Figure 3: Only 12% of organizations are AI Achievers
in both categories are the AI Achievers.
AI Builders show strong foundational
capabilities and average differentiation
capabilities, while AI Innovators show
strong differentiation capabilities and
average foundational capabilities.

Achievers, Builders and Innovators


collectively represent just 37% of surveyed
organizations—Achievers accounted for
12%, Builders for 12% and Innovators for
13% (Figure 3).

A fourth group we’re calling AI


Experimenters—those with average
capabilities in both categories—make up
the majority (63%) of those surveyed.

Source: Accenture Research analysis based on a sample of 1,200 companies

The art of AI maturity—Advancing from practice to performance 10


For the world’s 2,000 largest firms by AI-enabled remote systems. And the life Figure 4: Levels of AI maturity by industry, 2021 and 2024*
market cap, the percentage of Achievers sciences industry will expand its use of
was even smaller: 10%. These numbers AI in efficient drug development. Still,
suggest that large firms may struggle to there is enormous room for growth in
make the large foundational and cultural AI adoption across all industries and
shifts needed to become AI Achievers. an enormous opportunity for those
organizations that choose to seize it.
Taken together, Achievers, Builders and
Innovators tend to have more resources For industry laggards like financial
(such as technology, talent and patents) services and healthcare, a range of
to deliver on their AI visions and to factors may be contributing to their
transform their organizations. Examples relatively low AI maturity—including
can be found across a wide range of legal and regulatory challenges,
industries: healthcare, financial services, inadequate AI infrastructure and a
life sciences, utilities, retail, energy shortage of AI-trained workers.
and more.

AI, applied
While industries like tech are currently
far ahead in their respective AI maturity,
the gap will likely narrow considerably by
2024 (Figure 4). Automotive is betting on
a big surge in sales of AI-powered self-
driving vehicles. Aerospace and defense
firms anticipate continued demand for
Source: Accenture Research
Note: *2024 = estimated scores. Industries’ AI maturity scores represent
the arithmetic average of their respective Foundational and Differentiation index.

The art of AI maturity—Advancing from practice to performance 11


AI, applied across industries
• One food delivery service uses deep • A large Australian telco deployed AI • In the public sector, Metro de
learning to guide drivers to the best to quantify the effectiveness of its Madrid, one of the world’s oldest
delivery routes. AI models analyze individual marketing initiatives. The urban rail systems, deployed AI
more than 2,000 variables, from firm was able to measure some 4,000 algorithms to sift through mountains
the latest food ordering trends to different marketing metrics and, in of data—on everything from air
traffic conditions, to make real-time the process, has created a world- temperature at individual stations,
recommendations. class marketing performance insights to train frequency and passenger
capability, with a range of strategic patterns, to electricity prices—to
• A large chemicals and energy firm and tactical applications. The telco is reduce its annual energy intake
is using drones and AI-powered using insights gained from Marketing by 25%.
computer vision to monitor its Mix Modeling (MMM) to optimize
equipment and remote locations. the allocation of marketing spend, • A major US-based beverage bottler
The upshot: More frequent messaging and media. used AI to consolidate data sources
inspections at lower cost to the and measure the effect of promotions
company and fewer safety risks for • A leading solar-panel installer is on different retailers and markets,
its maintenance workers. using satellite photos and deep- boosting the bottler’s annual sales
learning algorithms to create fully by 3%.
• A Middle East-based telco uses automated rooftop-installation plans
AI-driven virtual assistants—which and price estimates. In addition to
can communicate in different Arab offering end customers an industry-
dialects as well as in English—to first ability to self-design their
deftly handle some 1.65 million systems, the company expects its AI-
customer calls each month. led design efforts to ultimately lower
the firm’s sales costs by 25%.

The art of AI maturity—Advancing from practice to performance 12


The art of AI maturity

AI Achievers advance from


practice to performance
AI Achievers advance from Figure 5: AI Achievers outperform in nearly all capabilities

practice to performance
AI Achievers thrive when it comes to traditional
performance metrics.
Pre-pandemic (2019), they already enjoyed any one individual capability, but
50% greater revenue growth on average, by their ability to combine strengths
versus their peers. And today, they’re 3.5 across strategy, processes and
times more likely than Experimenters to people (Figure 5).
see their AI-influenced revenue surpass
30% of their total revenues. By comparison, Innovators typically
excel at securing senior sponsorship
These companies are going above and embrace training for all employees,
and beyond, deploying AI solutions to but they lack the foundational capabilities
solve problems, spot opportunities and required to support AI at scale.
outperform their peers. What sets the AI
Achievers apart? Builders, on the other hand, excel
at creating data and AI platforms, but
they tend to be weaker at cultivating AI
Mastery of multitasking fluency and the innovation culture that
When compared with all other groups, AI is needed to drive adoption.
Achievers demonstrate high performance Source: Accenture Research
across a combination of capabilities. They Note: Each square represents one of the 17 key capabilities. The square is filled in when the AI profile is
are not defined by the sophistication of outperforming against peers (higher than the average across all companies in terms of % of companies
reaching the mature level).

The art of AI maturity—Advancing from practice to performance 14


Turning pilots into production Figure 6: Achievers excel at turning AI pilots into production

Achievers have largely moved beyond the AI investment


“tipping point,” going from experimenting with new AI in
isolation to applying AI at scale to solve critical business
problems (Figure 6). Achievers are 25% more likely to
scale AI pilots across the enterprise compared
with Experimenters.

Take product development as an example: Procter


& Gamble (P&G) uses “explainable AI” algorithms to
harness its proprietary data and formulation models and
recommend product improvements. If, for example, the
company wants to increase the foam in its dishwashing
liquid without changing the price, in-house software
developers can now ask the explainable AI to recommend
a replacement ingredient. If, however, that new ingredient
modifies the liquid’s color, developers can then instruct the
AI to search for a new ingredient—and so on and so forth.

P&G also relies on AI to generate product formulations


that are more likely to perform as expected, resulting in
less physical testing of new products. The payoff is lower
product-development costs, as well as the ability to better Source: Accenture Research

tailor products for specific markets and launch them faster. Note: Score 0-100, ranging from 0 = AI use case not started, 50 = AI use in early stage, 100 = having AI programs in place for
full productization. The chart shows the average scores for AI use cases of different functions, between Achievers and other
firms. Those differences are statistically significant after controlling for industry, geography and company size; see Appendix for
more details.

The art of AI maturity—Advancing from practice to performance 15


Focusing beyond firms that managed to reduce emissions
financial metrics from their operations, 70% used AI to
achieve those reductions. Likewise, of the
Achievers also develop strong surveyed companies that made strides
relationships with customers—by in measuring and disclosing their carbon
building trust, reducing churn and footprints more transparently, 75% used AI
boosting the quality and safety of to make such progress.
offerings. Our stakeholder performance
model showed with high statistical One US-based utility company conducts
significance that Achievers score 8% remote monitoring of its extensive grid
higher than Experimenters on customer infrastructure via satellites, drones and
experience (see Appendix for more other surveillance tools. With the help of
on methodology). advanced analytics, machine learning and
computer vision, the company is able to
Additionally, they double down on their quickly identify and prioritize areas for
commitment to sustainability by, for maintenance, improve public safety and
instance, rigorously measuring and mitigate the effects of climate change.
reducing their greenhouse gas emissions,
consuming water and other natural The stakeholder performance
resources more economically and model revealed the value-creation gap
using AI responsibly. between Achievers and other companies
is significant when it comes
Accenture’s Sustainable Technology to sustainability.
survey of more than 500 multinational
companies found that of the surveyed

The art of AI maturity—Advancing from practice to performance 16


The art of AI maturity

How AI Achievers
master their craft
Five success factors
How AI Achievers
master their craft
It’s worth noting that the potential for
AI-mature organizations will evolve
along with the technology itself. High
performance today will ultimately become
business-as-usual tomorrow.​

Today’s AI Achievers have set the standard


and are poised to remain leaders. While
there is clearly a science to AI, they’ve
shown us there is also an art to AI maturity.​

They have demonstrated that excellence


in areas like vision and culture are just
as critical as algorithmic integrity. Our
research uncovered five key success
factors for AI Achievers.​

The art of AI maturity—Advancing from practice to performance 18


Success Factor 01

Champion AI as a strategic priority


for the entire organization, with full
"In the last five years, we
sponsorship from leadership started to use AI as one of our
Companies can create strong AI And for the CEOs of Achievers,
main drivers in the business.
strategies, but unless those strategies creating a culture of innovation is itself Five years ago, AI was not
receive enthusiastic support from the CEO a deliberate, strategic move—one that is
and the rest of the C-suite, they’re likely to used as a vehicle for experimentation critical at all … [but today] it’s
flounder, competing with other initiatives and learning across the organization.
for attention and resources. becoming critical. I would say,
In fact, 48% of Achievers embed
Achievers are more likely to have formal innovation in their organizational
between 0 and 10, [AI] has
senior sponsorship for their AI strategies:
we found that 83% of Achievers have such
strategies, while just 33%
of Experimenters do.
become something like an 8." 3

sponsorship, while only 67% of Builders


and just 56% of Experimenters have it. CEO of a German automotive parts
and equipment manufacturer
Our research also suggests that the
best AI strategies tend to be bold, even
when they have modest beginnings.
Bold AI strategies, in turn, help
spur innovation.

The art of AI maturity—Advancing from practice to performance 19


For instance, Lendlease Digital (part of We found that 16% of Achievers are
multinational Lendlease Group) hopes already using platforms that allow workers
to produce architectural blueprints for to easily pose questions and share ideas
buildings using generative design and AI, with colleagues across the company—
then use those blueprints to manufacture compared to 4% of Experimenters. That
actual buildings in factories—fitting number will only grow as these companies
together all the pieces like LEGO sets. expand their pools of AI talent.

The company’s bold vision starts at the


top, led by the CEO of Lendlease Digital,

83%
William (Bill) Ruh.

To encourage such end-to-end innovation,


Achievers implement systems and
structures that help employees showcase
their innovation experiments and seek
constructive feedback from leadership.
of Achievers have
For instance, Achievers tend to be the first
to embrace new tools that encourage their CEO and senior
employees to experiment and innovate. sponsorship.

The art of AI maturity—Advancing from practice to performance 20


Success Factor 02

Invest heavily in talent to get more


from AI investments

With a clear AI strategy and strong CEO This makes it much easier to
sponsorship, organizations are more likely scale human and AI collaboration
to invest heavily in creating data and AI and ensure that AI permeates
fluency across their workforces. While AI the organization.
proficiency must start at the top, it can’t
end there. Nearly half (44%) of Achievers
have employees with consistently
We found, for example, that 78% of high AI skills competencies, while
Achievers—compared with just 56% of Innovators (33%) and Experimenters (30%)
Builders and 51% of Experimenters— have significantly fewer such employees,
have mandatory AI trainings for most on average. Furthermore, Achievers have
employees, from product development employees with higher competencies in
engineers to C-suite executives. almost all data- and AI-related skills.

Because Achievers prioritize efforts to


build AI literacy in their workforces, it’s
no surprise that their employees are also
more proficient in AI-related skills.

The art of AI maturity—Advancing from practice to performance 21


Achievers also develop proactive AI Japanese e-commerce giant Rakuten
talent strategies to stay at the forefront of established an “AI Promotion Department”
industry trends. In addition to hiring, this in 2016 to accelerate efforts to infuse

78%
could mean partnering with or acquiring AI into the company’s 70+ diverse
specialist companies to fill critical roles businesses. By 2018, the department
(such as data or behavioral scientists, helped turn more than 30 AI pilot
social scientists and ethicists). It also projects into successful offerings.5
means having a plan to get these diverse,
multidisciplinary workers to collaborate, And a leading Southeast Asian oil and
create and sustain maximum value from gas firm built an AI-powered, “gamified”
the company’s data-science capabilities. learning platform to expand employees’ of Achievers have
digital fluency. It also created a cloud- mandatory AI trainings
In 2018, US utility Exelon established an based performance reviewer that
Analytics Academy. This training upskilled scrutinized a decade’s worth of employee for most employees, from
employees like Jeffrey Swiatek, who, at the data to recommend workers best suited product development
age of 41, transitioned from his longtime for various digital roles. The innovation
role as a maintenance worker into a saved the firm’s HR department significant
engineers to C-suite
higher-paying position as a quantitative time filling positions. It also reduced executives.
engineer. Swiatek has since used his scope for managerial bias in promotional
training to write predictive software that decisions and helped workers assess and
saved Exelon an estimated $1 million over close digital-skills gaps.
eight years on equipment maintenance.4

The art of AI maturity—Advancing from practice to performance 22


Success Factor 03

Industrialize AI tools and


teams to create an AI core

Another priority for Achievers involves learning engineers, data scientists, data-
building an AI core: an operational domain experts and systems engineers.
data and AI platform that taps into
companies’ talent, technology and data To build AI cores, Achievers harness
ecosystems, allowing firms to balance the power of internal and external data,
experimentation and execution. An AI making that data trustworthy and storing
core helps organizations productize their it in a single enterprise-grade cloud
AI applications and integrate AI into other platform—complete with appropriate
applications, which makes differentiation usage, monitoring and security policies.
with AI more seamless.
To extract value from their data quickly
An AI core also works across the cloud and effectively, Achievers are also
continuum (e.g. from migration to 32% more likely, on average, than
innovation), provides end-to-end data Experimenters to either develop custom-
capabilities (foundation, management built machine learning applications or
and governance), manages the machine work with a partner that offers solutions-
learning lifecycle (workflow, model as-a-service. Achievers are also more likely
training, model deployment) and than Innovators to use AI for innovation,
provides self-service capabilities. AI tapping into readily available developer
cores are, in turn, managed by dedicated networks that can swiftly productionize
interdisciplinary teams of machine and scale successful pilots.

The art of AI maturity—Advancing from practice to performance 23


A major insurer used to rely on its Thanks to the organization’s increased
employees to manually administer investment in AI-savvy talent, its business
claims—a tedious process that cost department now receives new, AI-
over $500 million annually—even powered apps within five months of
before the firm’s billion-dollar payouts to initiating their development—compared
policyholders. The company explored with an 18-month wait, on average, before
native cloud-storage systems and AI the digital factory was built. More broadly,
more aggressively, with the goal to store, by 2025, the company expects its digital
analyze and track images and other factory to boost its bottom line by $1.5
unstructured data to support claims billion annually.
processing. By industrializing its AI
tools and teams, the company targeted To strengthen their AI cores, Achievers
efficiency gains of 5% in its first year alone, often collaborate with external experts
with longer-term cost savings of more to stay on top of of breakthroughs in
than $100 million annually. science and engineering. In 2020, for
example, American Express partnered
A European energy company created with the Indian Institute of Technology
a digital factory to help empower Madras to create a Data Analytics, Risk and
employees to use analytics and AI-driven Technology laboratory at the prestigious
insights in their daily jobs.​Among other university.6 Such innovation ecosystems
initiatives, the digital factory trains field help Achievers develop AI apps tailored
engineers to work with, and improve, specifically to their needs.
machine learning models. The factory
also provides mandatory data and
AI training to all managers, as well as
reskilling and upskilling support to the
firm’s entire workforce.

The art of AI maturity—Advancing from practice to performance 24


Success Factor 04

Design AI responsibly, from the start

As companies deploy AI for a growing The ability to demonstrate high-quality,


range of tasks, adhering to laws, trustworthy AI systems that are
regulations and ethical norms is critical to “regulation ready” will give first movers
building a sound data and AI foundation. a significant advantage in the short- and
The potential for regulatory changes in long-term, enabling them to attract new
many countries makes the challenge even customers, retain existing ones and build
more daunting. investor confidence.

In a separate Accenture study of 850 Achievers are consciously applying


C-suite executives, we sought to gauge responsible AI with greater urgency than
attitudes towards AI regulation and assess their peers. Achievers are 53% more likely,
organizations’ readiness to comply. on average, than Builders and Innovators
to be responsible by design: designing,
Nearly all (97%) respondents believed developing and deploying AI with good
that regulation will impact them to some intention to empower employees and
extent, and 77% indicated that compliance businesses, and to fairly impact
is a company-wide priority. Interestingly, customers and society—allowing
many organizations view AI regulation as a companies to engender trust and
boon rather than a barrier to success. scale AI with confidence.

The art of AI maturity—Advancing from practice to performance 25


For companies, the upshot of The initiative has, among other
being responsible by design is achievements, produced a practical
an improved ability to meet future methodology and toolkit—the first of
requirements, better mitigate risks its kind—that offers detailed guidance
and create sustainable value for on how to use AI leveraging the FEAT
themselves and their stakeholders. principles, i.e. fair, ethical, accountable
and transparent. Even though only 6%
For instance, the Monetary
Authority of Singapore (MAS), the Novartis is creating effective
of the companies surveyed
country’s central bank and financial
regulator, recognized the benefits that AI
accountability mechanisms and risk-
management controls to keep AI-powered
had already implemented
can provide to financial firms. Yet MAS was operations and services aligned with the responsible AI practices, 42%
also wary of the threat posed to firms and company’s core values. In addition, notes
markets by the illegal and/or unethical use Klaus Moosmayer, Novartis’ Chief Ethics, of surveyed companies aspire
of AI. To guard against this, MAS helped Risk and Compliance Officer, it’s designed
launch the Veritas initiative together to, “provide ... a clear framework for to do so by the end of 2024.
with the financial industry, which aims to ethical use of AI—enabling [employees] to
support the responsible use of AI in the challenge their own decisions
finance industry. and biases.”7

The art of AI maturity—Advancing from practice to performance 26


Success Factor 05

Prioritize long- and short-term


AI investments
"I’m on a journey that doesn’t
To avoid being left behind, most For Achievers, continued investment
stop with a move to the cloud. companies need to aggressively increase largely involves expanding the scope of AI
I’m in the middle of rebuilding their spending on data and AI. One reason to deliver maximum impact, while “cross-
Achievers get more out of AI is simply pollinating” AI solutions and redeploying
an organization shifting from because they invest more in it. resources in the process.

being extremely operational We found that in 2018, Achievers devoted As part of its efforts to create a more

into an organization that is 14% of their total technology budgets


to AI, while in 2021 they devoted 28%. In
data-driven organization that can offer
customers highly personalized digital
transformational." 2024, they plan to devote 34%. service, Walgreens Boots Alliance
migrated from legacy databases to
Francesco Tinto, global CIO, SVP, Achievers also understand that their AI advanced cloud databases and analytics,
investment journey doesn’t have a finish and built some 100 high-value AI products
Walgreens Boots Alliance line. There is, they frequently note, no that create detailed customer profiles
“peak AI.” These companies know they and help the company better optimize
have only scratched the surface of their inventory and prices. The company has
AI transformations and that the quality of been committed to its data- and AI-led
their investments matters just as much as transformation since 2020 and doesn't
the quantity. intend to slow down anytime soon.

The art of AI maturity—Advancing from practice to performance 27


The share of AI Achievers
will increase rapidly and
significantly, more than
doubling from the current
12% to 27% by 2024.

The art of AI maturity—Advancing from practice to performance 28


The art of AI maturity

Practice makes progress


Practice makes progress
The concept of using AI to solve business problems isn’t new.
By 2019, there was evidence that While Achievers are advanced relative Those who transform will be the
scaling AI beyond proofs of concept had to their peers, they’ll set new standards ones whose teams master the art
8
a significant impact on ROI. Then the for high performance as their own of AI maturity, using cloud as the
pandemic hit. For many organizations, maturity evolves.​ enabler, data as the driver and AI
enterprise-wide transformation was an as the differentiator.
urgent means of survival. For others, it Other organizations should be asking ​
quickly became a catalyst to thrive. ​ questions to assess their own AI maturity. How can AI help you differentiate?​
To help get started, Figure 7 has some
​ I Achievers are thriving. Across industries,
A sample questions for C-suite leaders,
they’ve moved past cloud migration to according to Accenture’s AI maturity "AI, for us, is really the
innovation. They’ve capitalized on cloud’s assessment. There are also tools available
scale and computing power to tap into to help benchmark AI maturity and technology that we’re
new data sources and AI technologies that
are widely available. But AI isn’t their secret
establish clear paths to progress and
performance.​
pushing...We want to make
to superior performance. It’s how they’re sure that AI and machine
approaching AI that makes them different. A
​ s AI technologies become more
They’ve established that AI maturity prevalent, the future of all businesses is learning is embedded in
is as much about people as it is about going to look very different—some will
technology. As much about strategy as it lead the change, and some will be
everything we do."
is about implementation. As much about subjected to it.
Francesco Tinto, global CIO,
responsibility as it is about agility.​
SVP, Walgreens Boots Alliance

The art of AI maturity—Advancing from practice to performance 30


Figure 7: AI maturity assessment: sample questions for C-suite leaders

Category Key questions

• Does your C-suite have clear accountability for data and AI strategy and execution?
• How do you identify potential value, and how are business cases prioritized—considering the potential risks and alignment
Strategy and Sponsorship with the overall strategy of the organization?
• Are you allocating enough delivery resources to build AI products and services in-house, and are you able to get the most
out of your ecosystem partners?

• To what extent do you have a cloud platform and technology strategy that supports your AI strategy?

Data and AI Core • Do you have an effective, enterprise-wide data platform, as well as strong data management and governance practices,
to meet business needs?
• Are you using data science and machine learning teams effectively across the lifecycle of AI development?

• Is your data- and AI-literacy strategy aligned to your business objectives?


• To what extent have you prioritized data and AI fluency for senior leaders, business stakeholders and employees across
your organization?
Talent and Culture
• Do you have a holistic talent model to scale, differentiate, retain and develop AI talent (diverse, dedicated teams of
machine learning engineers, data scientists, data-domain experts and data engineers)?
• How are you institutionalizing a data and AI culture within your organization?

• Do you have an enterprise-wide framework to help you operationalize responsible data and AI from principles to practice?
• Are you applying a consistent and industrialized responsible data and AI approach across the complete lifecycle of all
Responsible AI your AI models?
• Are you methodically tracking the evolution of AI-related laws and regulations across the different jurisdictions in which you
operate, while anticipating and preparing for future changes?

Source: Accenture Research

The art of AI maturity—Advancing from practice to performance 31


Meet the authors Research director

Sanjeev Vohra Ajay Vasal Praveen Tanguturi, PhD


Growth & Strategy Lead and
Global Lead – Applied Thought Leadership Research
Centre for Data & Insights
Intelligence Principal Director
Lead – Applied Intelligence

Philippe Roussiere Lan Guan


Accenture Research Innovation Lead, Cloud First
and AI Global Lead – Data & AI​

The art of AI maturity—Advancing from practice to performance 32


Contributors

Research Leads​

Yuhui Deeksha
Xiong Khare Patnaik
Research Manager Research Manager

Contributors: Rahul Basole, Mariusz Bidelski, Marcin Bodziak, Tomas Castagnino,


Joe Depa, Ray Eitel-Porter​, Michelle Ganchinho, Michal Hadrys, Andy Hickl, David Kimble,
Carrie Kleiner, Andra Najem, Linda Ringnalda, Paridhi Sharma, Joanna Syczewska,
Ezequiel Tacsir, Jonathan Thomas, Jakub Wiatrak, and Yingchuan Zhu​

​Marketing + Communications: Kathy King, Alisyn Abney, Alexa Mouta

The art of AI maturity—Advancing from practice to performance 33


About the research Industries

177
131
106
105
102
99
98
98
97
94
93
91
89
86
85
64

97 Countries
158
Revenue (USD) 116 69

207 65 102
887 98 38
111 76
93 65
266
87 173
77 403
42

34
Appendix
Survey Economic modeling and data science Ri represents the level and evolution stronger explanatory power in the first
From August to September 2021, To assess companies’ AI maturity, as well of a company’s AI-influenced revenues model of “sustaining at >10%” than
Accenture surveyed 1,615 C-suite as other measures of performance, we (sustaining at >10%, reaching >30%) AI differentiation capabilities; in the
executives at 1,176 of the world’s largest took the following steps: With i = company, t = 2021 and t-1 = second model of “reaching over >30%”,
companies—present in 16 industries and 2018, Xit includes controls for industry, AI differentiation capabilities have
headquartered in 15 countries. 1. I dentified key capabilities of AI firm size and company location stronger explanatory power. In other
maturity (country). words, AI foundational capabilities are
Interviews and case studies We sought to understand the key essential to building the necessary
We interviewed 25 CEOs, Chief Data capabilities that contribute to reaching The model is a linear probability Lasso foundation for organizations to enter
Officers and Chief Analytics Officers. both an “entry” level of AI maturity (i.e. model, a K-fold cross-validation with the AI race. Meanwhile, AI differentiation
We also interviewed Renée Richardson deriving at least 10% of revenues from 10 folds performed. capabilities are key for organizations to
Gosline (Senior Lecturer at MIT Sloan AI-influenced initiatives from 2018 to reach the next level of AI maturity.
School of Management and Principal 2021) and a higher level of AI maturity 2. Defined "foundational" and
Research Scientist at MIT’s Initiative on (i.e. deriving more than 30% of revenues "differentiation" capabilities 3. Built the AI maturity index
the Digital Economy) and Christine Foster from 2018 to 2021). To do this, we built In our models, we classified We built two indexes that measure
(Chief Commercial Officer at The Alan two machine learning models that Capabilitiesit-1 and ∆Capabilitiesit as AI companies’ AI foundational capabilities
Turing Institute), as well as numerous AI account for more than 80 capabilities foundational capabilities; Capabilities and AI differentiation capabilities,
experts at Accenture. Through research that contribute to the two different Interactionsit,t-1 are—as the name respectively, as identified by our two
and client work, we also developed levels of AI maturity (see box below). suggests—capabilities with interaction, models. An overall AI maturity index
over 40 company case studies on AI with strong senior sponsorship is built as the arithmetic average of
transformation. Ri = β0+β1Xit + β2 Capabilitiesit-1 + and a well-defined AI strategy. We both AI foundational index and AI
β3 ∆Capabilitiesit + β4Capabilities classified these interaction terms as AI differentiation index, which is indicative
Design thinking Interactionsit,t-1 + eit differentiation capabilities. of their probability of achieving high
We ran a MURAL session with more than AI-influenced revenue. The median
15 senior data scientists to validate our AI From our models, we discovered maturity index of all companies is
maturity model. that AI foundational capabilities have 36/100.

The art of AI maturity—Advancing from practice to performance 35


4. Constructed AI profiles based on 5. M
 easured Achievers’ financial • Customer experience reflects with their supplier networks and
foundational and differentiation premium how companies strengthen their inventory levels; our measures include
capabilities To assess AI Achievers’ financial sales pipeline by developing supplier diversification, supplier risk,
The AI foundational capabilities and AI performance, we used data from strong customer relationships; our and inventory management.
differentiation capabilities indexes were S&P Capital IQ to build the following measures include consumer trust,
then used to construct a matrix. We regression model: Revenue growthi = customer churn, product quality 7. Measured the speed of AI
used the top quartile as a threshold on β0+β1Xi + β2 AI Achiever + ei and safety, and an overall customer- transformation vs. the speed of
both axes to cluster all the companies (i = company, AI Achiever as the dummy centric mindset. digital transformation
from the survey into four groups: variable, and Xi including controls • Sustainability reflects how To understand how fast companies
• AI Achievers—the top quartile on for industry, firm size, and company companies strengthen their undergo AI transformation compared
both foundational and differentiation location). commitment to environmental to digital transformation, we used
median maturity index: 64/100 stewardship; our measures include the frequency of mentions of both
• AI Builders—the top quartile 6. Measured Achievers’ stakeholder greenhouse gas emissions, terms on companies’ earnings calls
on foundational but not on performance ecological management, resource as a proxy. To do this, we performed
differentiation median maturity To assess Achievers’ stakeholder use, water and waste efficiency, and a natural language processing
index: 44/100 performance in the areas of customer various environmental solutions. analysis of investor calls of the world’s
• AI Innovators—the top quartile experience, sustainability, workforce, • Financial reflects how companies 2,000 largest companies (by market
on differentiation but not on and supply chain, we built scores from deliver profitable growth and capitalization), sourced from the S&P
foundational median maturity index: 0-100 in these respective areas using operate efficiently. earnings transcripts database. (Note:
50/100 data from FactSet, Arabesque, Oxford • Workforce/employee experience Our analysis included 744 companies
• AI Experimenters—all remaining Economics, and S&P Capital IQ, which reflects how companies unlock with a consistent history of earnings
companies median maturity index: measure companies' performance their workforces’ full potential; our calls during 2010-21.) Finally, we
29/100 against their industrial peers. The measures include compensation, built predictive S-Curve models that
difference between Achievers and employment quality, employee estimated the time, henceforth, that it
other companies is highly statistically turnover, occupational health would take for 90% of such companies
significant (p < 0.01) for customer and safety, and training and to mention the aforementioned terms
experience and sustainability. development. on their earnings calls.
The following offers more detail on • Supply chain reflects how
each area. companies manage risks associated

The art of AI maturity—Advancing from practice to performance 36


Key Capabilities

Strategy and Sponsorship as a reaction to a need. They’re first- with a partner who offers solutions- keep data clean and trustworthy, and
movers instead of fast followers in as-a-service, vs. purchase “off-the- to support decision making at greater
1. Senior Sponsorship: Organizations terms of applying AI for business value. shelf” AI solutions with little-to-no speed and scale.
have an AI strategy that is developed customization.
by the Chief Analytics Officer, Chief 4. Readily Available AI and ML tools: 9. Data Management and Governance:
Data Officer, Chief Digital Officer Organizations work with an ecosystem 7. Platform and Technology: Organizations scale their data
or an equivalent. The CEO and the of technology partners to access Organizations apply the necessary management and governance
Board actively sponsor and share machine learning models and tools cloud, data and AI infrastructure, practices to increase data quality,
accountability for the strategy and to help innovate new products software, self-serve capabilities and trust and ethics across entities
associated AI initiatives. and services. industry best practices, and they adopt —e.g. by implementing master data
the latest tools available from platform management and ensuring security,
2. AI Strategy: Organizations not only 5. Readily Available Developer and technology partners. compliance and interoperability.
have a core AI strategy aligned to the Networks: Organizations tap into an
overall business strategy, but they ecosystem of technology partners 8. Experimentation Data—Change: 10. Data Management and Governance—
also dedicate tools and tactics to to access developer networks that Organizations improved their use Change: Organizations improved their
execute it and continuously track their support the development of new of experimentation data between data management and governance
performance against that strategy. products and services. 2018 and 2021, effectively translating practices between 2018 and 2021,
into a higher data and AI maturity. effectively translating into a higher data
3. Proactive vs. Reactive: Organizations Experimentation data is the use of and AI maturity.
have the resources (such as Data and AI Core internal and external data to design
technology, talent and patents) to new models and generate new
proactively define and demonstrate 6. Build vs. Buy: Organizations develop insights. To do that, organizations use
how AI can create value vs. apply AI custom-built AI applications or work enterprise-grade cloud platforms to

The art of AI maturity—Advancing from practice to performance 37


Talent and culture 13. InnovationCulture Embedded: just ML engineers—such as
Organizations ensure innovation is part behavioral scientists, social scientists,
11. Mandatory AI Training: Organizations of the day-to-day work environment. and ethicists.
enforce AI-specific training programs to They encourage mindsets, behaviors
improve AI fluency, which are tailored and routines that all serve as a vehicle Responsible AI
for senior leadership and specific for experimentation, collaboration
functions, e.g. salesforce, product and learning from ideation to product 16. Responsible AI: Organizations have
engineers, etc. They also create development to market launch. an industrialized, responsible approach
deliberate opportunities for employees to data and AI across the complete
to learn and apply AI in their roles. 14. Innovation Culture Encouraged: lifecycle of their AI models—an
Organizations promote and reward approach that can meet changing
12. Employee Competency in AI- innovative mindsets and behaviors regulatory requirements, mitigate risks,
Related Skills: Organizations regularly including entrepreneurship, and support sustainable, trustworthy AI.
measure the competency level of collaboration and thoughtful
employees to determine where further risk-taking. 17. Responsible AI—Change:
training is needed to improve overall Organizations have improved their
acumen. They measure and build 15. AI
Talent Strategy: Organizations have responsible data and AI practices
expertise in critical areas like coding, an AI talent strategy—hiring, acquiring, between 2018 and 2021, effectively
data processing and exploration, retention—that evolves to keep pace translating into a higher data and
business analytics, domain and with market or business needs. They AI maturity.
business acumen, machine learning, also have an AI talent roadmap for
visualization and more. hiring diverse AI-related roles, beyond

The art of AI maturity—Advancing from practice to performance 38


References

1
 ttps://news.stanford.edu/news/2011/october/john-mccarthy-obit-102511.
h 5
 https://global.rakuten.com/corp/careers/topics/engineering3/
html#:~:text=John%20McCarthy%2C%20a%20professor%20emeritus,He%20
was%2084 6
https://economictimes.indiatimes.com/tech/software/american-express-sets-
up-data-analytics-risk-technology-lab-in-iit-madras/articleshow/77925793.cms
2
 ccenture Research analysis of the world’s 2,000 largest companies by market
A
capitalization mentioning AI in their earnings calls. Formula is based on CEOs of 7
 ttps://www.novartis.com/about/strategy/data-and-digital/artificial-intelligence/
h
companies that had earnings call in 2020, and CEO was present at the call, and our-commitment-ethical-and-responsible-use-ai
CEO mentioned AI. 46% of these CEOs mentioned AI in their earnings calls, in
2021 up from ~35% in 2017.​ 8
https://www.accenture.com/us-en/insights/artificial-intelligence/ai-investments

3
Accenture Interview

4
 ttps://www.nytimes.com/2020/07/13/business/coronavirus-retraining-workers.
h
html

The art of AI maturity—Advancing from practice to performance 39


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The art of AI maturity—Advancing from practice to performance

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