# TCS Global Trend Study on Artificial Intelligence Reveals Industry Wide Investment by 2020 Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-09-13 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Disrupted Industries Invest Boldly in AI: TCS Study Meta Description: Discover how industries like Travel, Hospitality, and Telecom are leading AI investments, with insightful findings from Tata Consultancy Services. URL: https://financedigest.com/tcs-global-trend-study-on-artificial-intelligence-reveals-industry-wide-investment-by-2020html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd130917-7-1736843506514-compressed.jpg) _Disrupted Industries like Travel, Hospitality and Telecom Making Boldest Investments in Artificial Intelligence_ _Consumer Packaged Goods, Utilities and Insurance Outpace Other Industries in AI Investment as a Percentage of Company Revenue_ Tata Consultancy Services (BSE: 532540, NSE: TCS), a leading global IT services, consulting and business solutions organization, today unveiled the industry findings of its Global Trend Study titled, “Getting Smarter by the Sector: How 13 Industries Use Artificial Intelligence.” Focusing on the current and future impact of Artificial Intelligence (AI), the study polled 835 executives across 13 global industry sectors in four regions of the world, revealing that they all identified artificial intelligence as increasingly important to their strategic competiveness by 2020. According to the study, 80% of executives in all 13 industries currently invest in AI and almost 100% plan to invest by 2020.  The [insurance industry](https://www.financedigest.com/the-data-driven-future-of-the-insurance-industry.html "The data-driven future of the insurance industry") outspent the other twelve verticals surveyed, investing on average $124 million in AI systems, compared to a cross-industry average of $70 million. Consumer packaged goods [reported the second most significant spend at $95 million](https://www.financedigest.com/whatsapp-bans-2-4-million-indian-accounts-in-july-monthly-report.html "WhatsApp bans 2.4 million Indian accounts in July – monthly report"). Looking ahead to 2020, AI continues to be seen as a long term strategic bet, with ten of the 13 [industries planning](https://www.financedigest.com/plan-to-improve-german-rail-transport-may-worsen-congestion-industry-warns.html "Plan to improve German rail transport may worsen congestion, industry warns") to increase their investments in AI. The increases are most dramatic among industries with the lowest current investment levels, including the travel, transport and hospitality industry, which [plans to increase its spend](https://www.financedigest.com/growth-will-pay-for-uk-government-spending-plans-minister-says.html "Growth will pay for UK government spending plans, minister says") by 750%, from $4 million in 2015 to $34 million to 2020. This is followed by rises in media, entertainment and information services (292%), [industrial manufacturing](https://www.financedigest.com/expansion-in-manufacturing-sector-has-increased-demand-for-industrial-cooling-system-market.html "Expansion In Manufacturing Sector Has Increased Demand For Industrial Cooling System Market") (74%), healthcare (44%), and banking and finance (29%). “The second phase of our [Global Trend Study highlights that all industries](https://www.financedigest.com/truck-mounted-concrete-mixer-market-size-top-key-players-latest-trends-regional-insights-and-global-industry-dynamics-by-2022.html "Truck Mounted Concrete Mixer Market Size, Top Key Players, Latest Trends, Regional Insights and Global Industry Dynamics By 2022") see AI technology as a major game-changer on their business competiveness by 2020,” said K. Ananth Krishnan, [Chief Technology Officer](https://www.financedigest.com/future-market-insights-appoints-aditi-basu-as-chief-marketing-officer.html "Future Market Insights Appoints Aditi Basu as Chief Marketing Officer") of TCS. “It’s striking that the sectors making the boldest current or future AI investments and citing the most significant results seem to group around industries like insurance, travel, hospitality, and telecom, where disruption is having a major impact, and consumer-focused sectors such as the consumer packaged goods industry, where the [customer](https://www.financedigest.com/customized-innovation-to-drive-the-human-microbiome-market.html "Customized innovation to drive the Human Microbiome Market") experience can be significantly enhanced by AI innovation.” **AI Investments as a Percentage of Revenue and ROI** The leading investors in AI, determined as a percentage of average company revenue, were the consumer packaged goods (CPG) industry (0.66%), followed by utilities (0.53%), insurance (0.52%) and telecommunications (0.39%)Companies reported that their AI initiatives had a strong positive impact on both revenue improvement and cost reduction in the specific business areas where they invested in [artificial intelligence](https://www.financedigest.com/machine-learning-in-artificial-intelligence.html "Machine learning in artificial intelligence"). The [average revenue](https://www.financedigest.com/sports-nutrition-market-share-revenue-and-average-worth-by-makers-shared-in-an-exceedingly-latest-analysis-report.html "Sports Nutrition Market SHARE, REVENUE, AND AVERAGE WORTH BY MAKERS SHARED IN AN EXCEEDINGLY LATEST ANALYSIS REPORT") increase across all 13 industries was 17%, while the average cost reduction was 12%. Telecom companies generated the most value from AI investments in 2015, in [terms of revenue](https://www.financedigest.com/sheet-metal-fabrication-services-market-to-surge-at-a-robust-pace-in-terms-of-revenue-over-2026.html "Sheet Metal Fabrication Services Market to Surge at a Robust Pace In Terms Of Revenue Over 2026") improvement (average 25%) and cost reductions (average 20%). **AI used in the IT function most frequently** The most frequently mentioned business function using AI was perhaps unsurprisingly in IT, with high-tech and [utilities companies more frequently using cognitive technology in their IT operations than the 11 other industry sectors](https://www.financedigest.com/energy-utilities-sector-to-hold-60-share-in-switchgear-monitoring-system-market-by-2031.html "Energy & Utilities Sector To Hold 60% Share In Switchgear Monitoring System Market By 2031"). Across all 13 [industries studied](https://www.financedigest.com/industrial-automation-incentives-by-governments-in-emerging-economies-drive-industrial-robots-market-fmi-study.html "Industrial Automation Incentives by Governments in Emerging Economies Drive Industrial Robots Market: FMI Study"), only 29% of companies are using AI in sales today. However, more than half the CPG companies (52%) and [nearly half](https://www.financedigest.com/meta-to-take-nearly-half-of-sales-made-by-its-metaverse-creators-as-fees.html "Meta to take nearly half of sales made by its metaverse creators as fees") the retailers (49%) are using AI tools to improve sales performance. **Potential headwinds to AI adoption** Effectively [managing the security risk of AI systems is of paramount importance for the majority of industries](https://www.financedigest.com/energy-management-system-market-2021-by-global-key-players-types-applications-countries-industry-size-and-forecast-to-2025.html "Energy Management System Market 2021 by Global Key Players, Types, Applications, Countries, Industry Size and Forecast to 2025"), with companies in the automotive, banking and financial services, CPG, technology, industrial manufacturing, and telecoms industries all stating this as the number one success factor to derive real value from AI. Moreover, all industry sectors cited the importance of getting [managers and employees to trust the advice provided by AI systems](https://www.financedigest.com/traffic-management-systems-growing-at-a-cagr-of-22-5-for-2022-28.html "Traffic Management Systems growing at a CAGR of 22.5% for 2022 – 28"), and getting employees to learn about and adopt the new processes and systems that AI requires. In almost all sectors, addressing people’s [fears about losing](https://www.financedigest.com/london-fears-losing-luxury-shoppers-to-paris-and-milan.html "London fears losing luxury shoppers to Paris and Milan") their jobs was not ranked as a major barrier. This was underlined in phase one of the Global Trend Study released in March this year, which found companies with the biggest revenue and cost improvements from AI see the need for at least three times as many new jobs in each function by 2020 because of cognitive [computing innovations](https://www.financedigest.com/the-advanced-computed-tomography-scanners-market-to-have-growth-devised-on-innovation.html "The Advanced Computed Tomography Scanners Market to have growth devised on innovation"). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---