European Firms' AI Trends Revealed: Cornell Study Highlights Preference for Ready-Made Software

Professors from Dyson School of Economics and Management in the Cornell SC Johnson College of Business published a research that talks about which businesses have adapted to AI and from where did they get the AI softwares from. The research was written after analyzing more than 3000 European firms who are using AI in their work and it was found that most firms, specifically science, trade, finance and real estate firms are mostly preferring ready made AI softwares that the firms alter according to their own needs. This also proves that even though AI is targeting workers, the people with AI skills are still needed to make AI work in the firms.

The co-author of the study, Chris Forman, says that many industries are using ready made AI softwares but some are also developing AI softwares on their own. He also added that even though ready-made software is a lot useful and can help a lot, in-house development of AI softwares is more efficient and can do the task more accurately. The corresponding author of the study, Charles Hoffreumon, and co-author Nicholas van Zeebroeck, along with Forman did their research by studying the data from 2020 which talked about AI adoption in 3143 firms in 27 countries of the European Union.

According to the research, business software is hard to administer in the firms and that’s why many firms rely on ready-made softwares. Forman says that ready-made software can wipe out the need of AI skills in a firm that are needed to develop a new software. The data shows that 19% of the manufacturing industries in the EU rely on AI softwares. Other firms which use AI are Trade and Retail(18%), Construction(12%), Agriculture(4%) and Utilities(3%). Most firms use AI softwares to detect risks and frauds, to process and optimize equipment and for automation in robotics and warehouses.

Apart from the 58% respondents who are using ready-made AI softwares, 38% have hired an external consultant for them, 24% have modified the software and 20% are developing their own AI softwares in-house. Forman says that many firms have already adopted AI in their work and that has helped in the development of AI softwares according to human needs.

Image: DIW-Aigen

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