Why Invest in Data Analytics & AI
Competitive advantage and 7% - 14% productivity gains
Top-performing organizations leverage data analytics & AI to uncover insights, predict trends and automate processes, enabling precise, timely decision-making and driving innovation, competitive advantage, and strategic growth.
According to research by Erik Brynjolfsson and his colleagues, a top quartile organization in terms of digital capital* usage outperforms a second quartile organization by about 7% in productivity growth (NBER) (Brookings). This significant performance gap highlights the importance of investing in digital capital and leveraging advanced technologies to maintain a competitive edge.
Organizations in the top quartile of digital capital usage outperform those in the bottom quartile by a significant margin, typically around 12% to 14% in productivity growth (Stanford Economics) (NBER).
In summary, the productivity gains from world-class utilisation of digital capital equate to 7-14% per annum.
* digital capital is intangible value primarily comprised of data, analytics, knowledge and associated IT systems and processes