Don't Waste Money On AI: How Indian Businesses Can Invest Wisely?

Many companies are throwing money at AI without a clear plan, leading to wasted resources . This article will help Indian businesses avoid this trap and make smart investments in AI technology .
Why The Hype ?AI is a powerful tool and large language models (LLMs) like ChatGPT are changing the game. Businesses are excited about the potential, but this excitement can lead to rash decisions.

The Problem: Unrealistic Expectations and Wasted ResourcesLike with past technology trends such as VR, companies are rushing to show how much they spend on AI, even if it doesn't make sense. This approach leads to some big successes, but also many failures.

The Top 3 Reasons AI Projects Fail in India

• Not Knowing How AI Can Help Your Business Specifically

Think of AI as a powerful tool. Before you use it, you need a plan! Many businesses need to learn how AI can benefit their team. The key is to understand what problems AI can solve for YOU.

For example, a sales team could use AI to predict which leads are most likely to become customers. This helps them focus on the most promising opportunities. Imagine a model that considers everything a good salesperson would – a company's size, industry, and past interactions. By comparing this lead to similar situations, AI can predict the chance of a successful sale and suggest the best approach for your team to win the deal.

In marketing, AI can personalize content for each customer. Imagine a model that uses customer data like age, purchase history, and location to send the most relevant products and offers automatically. This makes marketing more effective and saves time.

• Your Data is a Mess

AI needs good data to work! However, many businesses have data scattered across different systems, making it disorganised and unusable. This is like trying to cook a delicious meal with spoiled ingredients – it just won't work!

Clean, organised and accurate data is crucial for AI success. This might involve combining data from different sources, checking its accuracy, and ensuring everyone uses the same data formats.

Here's the good news: Less than 10% of companies in India have organised data ready for AI. This means getting your data in order can give you a HUGE advantage over your competitors!

• The Human Touch is Missing

Even with great data and a plan, AI projects can still fail because of a lack of skilled people. We need experts who understand both AI and your business needs. These people are rare and expensive to find.

But there's a solution! New "no-code" tools are making AI more accessible. These tools allow people with less technical knowledge to build and use AI models. With proper training, your team can learn how to use AI to solve problems and create value for your business.

Cutting Through the Hype: 3 Steps to Smart AI InvestmentDon't be afraid to say no to AI projects that don't make sense for your business. Here are three key questions to ask yourself before investing:

• Total Cost Over Time: Consider all the ongoing costs, not just the initial investment. Building an AI project requires a team of people to maintain it - data scientists, engineers, and more. Don't get stuck with unfinished projects that drain resources.
  
• Why Us? Why Can't Someone Else Do This? Some AI applications become commodities – everyone offers them, and price becomes the only deciding factor. Focus on areas where you have a unique advantage, like access to specific data or a strong customer network.
  

Make Focused Bets and See Them Through: The best AI investments improve your existing business. Look for ways AI can enhance the products and services you already offer. Don't spread yourself too thin – choose a few key projects and commit to seeing them succeed.

Be Smart About AIWhile AI holds great promise, be cautious about getting caught up in the hype. By following these steps, Indian businesses can make informed decisions and ensure their AI investments deliver real results.