Turning AI into concrete value: the successful implementers’ toolkit

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Turning AI into concrete value:
the successful implementers’ toolkit
By the Digital Transformation Institute

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Introduction
“Organizations are now convinced of the benefits that AI can bring.
They are now asking themselves where and how they should invest.”
Gordon Schembri, Principal Digital Technology, GE Oil & Gas
This research is a pragmatic guide to help organizations in their AI investment decisions.
We analyzed more than 50 AI use cases regarding their adoption, complexity and
benefits. We surveyed senior executives from nearly 1,000 organizations around the
world that are already implementing AI; see the research methodology at the end of
the paper for more details. We also spoke to academics — as well as AI-focused
executives at global companies, startups and vendors — to gather perspectives in
four areas:
1. What concrete benefits are organizations seeing from AI today?
2. What use cases are bringing the most benefits?
3. Where should organizations invest?
4. What steps are essential to getting started with an AI strategy and
roadmap?
50
AI use cases
analysed

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Benefiting from AI now
“We had the computer revolution, the smartphone revolution, and the internet revolution but AI will probably
be the biggest technological shift we have ever seen.” Edouard d’Archimbaud, Head of Data & AI Lab,
BNP Paribas
Our research shows that AI is already transforming how organizations do business, manage customer
relationships and stimulate the ideas and creativity that fuel groundbreaking innovation (see Figure 1).
1,000
organizations
implementing
AI surveyed
Inﬂuencing
sales
Boosting
operations
Engaging
the customer
3 in 4
organizations
implementing AI
increase sales of
new products
and services by
more than 10%
78% of
organizations
implementing
AI increase
operational
efﬁciency by
more than 10%
75% of
organizations
using AI
enhance
customer
satisfaction by
more than 10%
79% of
organizations
implementing
AI generate
new insights
and better
analysis
Generating
insights
Figure 1. How AI is driving benefits across the organization
Source: Capgemini Digital Transformation Institute, State of AI survey, N=993 companies that are implementing AI, June 2017

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AI is boosting sales
Cosabella, a luxury lingerie retailer, has moved to
an AI-managed marketing platform. This smart
platform automates digital advertising and marketing
efforts, such as targeting a high-value audience
and driving paid search ROI. In a three-month pilot,
the platform produced a 336% return on ad spend
(ROAS) and a 155% increase in revenue (Q4, 2016).
Before they shifted to the AI platform, social media
accounted for 5 to 10% of Cosabella’s paid ad
revenue. Since the adoption of the platform, social
media consistently accounts for 30%. Cosabella’s
CEO says: “…I would never hire a human to manage
the technical aspects of our ad campaigns ever
again. We’ll leave the tech stuff to the tech and hire
humans for the high-level strategic and creative1
.”
Our research shows that organizations are using
AI to influence sales in a variety of ways, from
supporting new products to generating leads (see
Figure 2). Harley-Davidson, for example, used AI
for highly targeted marketing activities, identifying
customers who shared the attributes of previous
high-value customers. The AI tool helped generate
leads and also analyzed thousands of campaign
variables to identify what worked and what didn’t.
This helped increase sales leads by 2,930% within
three months2
.
Areas of AI-driven benefit gain for respondents: sales
74% 74%
68%
Increase in sales of new
products and services
Increase in sales of traditional
products and services
Increase in inbound
customer leads
Share of ﬁrms implementing AI that observed more than 10 percentage point beneﬁt in the respective area
Figure 2. Driving sales performance through AI
2930%
Increase in sales
leads experienced
by Harley-
Davidson using
an AI tool in three
months

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Figure 3. Series of key technologies commonly classified as AI
What is Artificial Intelligence?
Artificial Intelligence encompasses a range of technologies that learn over time as they are exposed to
more data. The definition we used in this report is that AI includes speech recognition, natural language
processing, semantic technology, biometrics, machine and deep learning, swarm intelligence, and chatbots
or voice bots. Figure 3 below summarizes most of the prominent technologies that are classified as AI.
6
Analysis of
images and
video to
interpret their
content
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Use of a large
group of
autonomous
agents; each
contributing
to solve a
problem
1
Online virtual
agent for
customer service
or human
language
interaction
2
Ability of
computers to
understand
and interpret
the spoken
word.
7
Ability of
computers to
learn without
being explicitly
programmed
3
Interactions
through
natural-language
sentences and
longer texts.
4
Provide
context to
decision-making
by data analysis
5
Measurement
of characteristics
of human
expressions and
physical states
to understand
intent, emotion,
age, etc.
8
Algorithms
inspired by the
structure and
function of the
brain creating
an artiﬁcial
neural network
Chat bots or
Voice bots
1
Speech
Recognition
Natural Language
Generation
Semantic
Technology
2
3
4
Natural
Language
Biometrics5
Image and
Video analysis
6
Computer Vision and
Biometrics Intelligence
Machine
Learning
7
Deep
Learning
8
Technology
Foundations
Swarm
Intelligence
9
Figure 3
Source: Capgemini Digital Transformation Institute Analysis

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AI is transforming operations
Our research shows that AI delivers significant
transformational benefits, from reducing churn
to increasing regulatory compliance. More than 7
out of 10 organizations surveyed for this research
are gleaning significant benefits in various areas of
operations (see Figure 4).
Examples include:
• At JP Morgan, lawyers spent thousands of hours
studying financial deals. Now, an AI system is doing
the challenging job of interpreting commercial-
loan agreements, taking on a task that has
swallowed 360,000 hours of work by lawyers and
loan officers. The AI system reviews documents
in seconds and is less prone to error. The system
has cut down on loan-servicing mistakes, many of
which originated from human error in interpreting
12,000 new wholesale contracts per year3
. A
similar experience is highlighted by Mohammed
Marikar, Director of Intelligence & Automation at
Royal Bank of Canada: “The role of the system is
to augment human analysis. AI offers the ability to
scale our capacity 10,000-fold of human analysis
and scale back as and when needed.”
• Siemens has developed a neural network-based
AI to optimize the combustion processes in their
flagship gas turbines. The system has, in tests,
already bettered human experts. After an expert
set the turbine manually to minimum emission, AI
took control of the combustion unit. Within two
minutes, it reduced the emission value further
by 20%4
. Jonas Albertson, Managing Director,
Atlas Copco—a Swedish industrial tools and
equipment manufacturer—says: “Typically, when
you move to more autonomous solutions, you
gain >20% productivity improvement at the lower
cost.”
• Mastercard intends using AI to improve the
overall accuracy of real-time approvals of genuine
transactions while reducing the number of false
declines. Mastercard estimates that the value of
false declines is over 13 times greater than the total
amount lost to actual card fraud and that a third of
customers stop shopping at retailers after being
falsely declined. By using AI, Mastercard hopes to
reduce the overall number of false declines, and
thus help their retailer partners5
. Stephen Epstein,
VP Product Marketing at Digital Reasoning—a
leading AI company—resonates with the thought:
“The most immediate improvements are— there
is a dramatic reduction of false positives and in
operational costs associated with those false
positives.”
68%
70%
75%
77%
78%
Reduced false-positives
Greater legal/regulatory
compliance at lower cost
Reduced operational cost
due to process improvement
Enhancement in employee
productivity
Increased operational
efficiency
Share of firms implementing AI that observed more than 10 percentage point benefit in the respective area
Figure 4. Organizations are seeing benefits across operations, sales, and customer service
20%
Improvement in
emission value
by AI over a
manual setting
at a Siemens
gas turbine
Source: Capgemini Digital Transformation Institute, State of AI survey,N=993 companies that are implementing AI, June 2017

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AI is engaging the customer
KLM, the Dutch airline, adopted an “AI-assisted
human agent” model to reinforce their existing
customer support staff. Using voice biometrics,
the system can identify over a hundred human
vocal features to instantaneously authenticate and
process a call. The AI agent can also solve customer
queries over a variety of digital platforms, adapting
the reply based on the inquiry platform. For instance,
it will reply in prose in an email, but use fewer than
140 characters if the query comes from Twitter.
Overall, it has resulted in 35% efficiency gains and
about 30% of KLM cases are now resolved through
the AI platform6
. Chief Data Officer at one of the
world’s leading telcos who we spoke to for this
research explains how AI creates value in customer
engagements: “As AI deployment takes away some
of the repetitive work, it allows organizations to
spend more time on real customer engagements
and trying to understand what customers really
want.”
Organizations across sectors are increasingly
seeing the benefit of using AI to improve customer
engagement. More than 1 in 2 organizations (59%)
agree that AI is supporting customer intimacy,
and AI initiatives have helped more than 6 in 10
organizations increase customer satisfaction and
reduce churn (see Figure 5).
As AI drives operational efficiency, it allows
employees to spend more time focused on the
customer. See “AI at ICICI, India’s leading private
bank”. Fidaa Chaar, Global Head of Client Services,
Société Générale, says: “Operational efficiency frees
up time that we can dedicate to focusing on added-
value tasks such as the customer relationship.”
Share of organizations implementing AI that observe more than
10 percentage point gain on the following benefits
Reduced churn Reduced customer complaints Enhanced customer satisfaction
(increase in NPS)
66%
72% 73%
Figure 5. AI is improving how organizations engage with customers
35%
Improvement
in customer
service
efficiency at
KLM using an
AI platform

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AI at ICICI, India’s leading private bank
ICICI Bank, India’s largest private-sector bank, is an early adopter of AI, with a new division—Technology
and Digital Group (TDG)—established to improve its digital capabilities.
The bank has deployed software robots in over 200 business process functions across the organization,
including retail banking operations, agri-business, trade and foreign exchange, treasury, and human
resources management. The bank has implemented the platform mostly in-house, leveraging artificial
intelligence techniques such as facial and voice recognition, natural language processing, machine
learning, and bots, among others.
The bank’s robot capabilities include;
• Chat bots that act as quasi-bankers
• Software bots that carry out remittances while helping customers with their loan choices
• Email bots that sort customer and distributor emails based on transaction status or similar criteria;
this has helped the bank slash its response time
The software robots now perform over a million banking transactions every working day. This has reduced
the response time to customers by up to 60%, and increased accuracy to 100%, sharply improving the
bank’s productivity and efficiency. It has also enabled the bank’s employees to focus more on value-
added and customer-related functions.
Source: Company website

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AI is generating new insights
Nearly three-quarters of companies say that AI brings new insights, improves data analysis, and helps them
make better decisions (see Figure 6).
It also makes the organization more creative. For George Sarmonikas, AI Lead at Ericsson, this is a result
of AI’s ability to automate routine tasks. “Artificial Intelligence automates some of the repetitive tasks of
the engineer. Now those engineers can dedicate more time to tasks that require more creativity,” he says.
Share of organizations implementing AI that are able
to achieve the following benefits
AI is bringing new insights and
better data analysis to the
organization
AI is
making our organizationmore
creative
AI is
helping our organization to make
better management decisions
79%
74%
71%
Figure 6. AI is bringing new insights and making organizations more creative
74%
Share of
organizations
implementing AI
who believe that
AI is making their
organization
more creative

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Has the negative impact of AI on jobs
been blown out of proportion?
History teaches us that, in the long run, technology
creates more jobs than it destroys. For instance, the
advent of ATMs was largely expected to decimate
the role of the bank teller. But between 1970
and 2010, the number of bank tellers in the US
increased from around 300,000 to around 600,0007
.
By lowering their operating costs, ATMs allowed
banks to open more branches, and thus drove the
need for more tellers. Similarly, since the 1980s, the
advent and extensive use of spreadsheet software
has skyrocketed demand for jobs that leveraged
such software. For example, management analyst
and financial manager jobs have quadrupled to
2.1 million since 1983—this is a job category that
wasn’t even being tracked earlier8
. The number of
accountants and auditors has grown by 41% since
1985 even as demand for traditional bookkeepers,
and accounting and auditing clerks fell by 44% in
the same period.
The CTO of a large, multinational technology firm
agrees: “I think for every job that is lost, there will
be many more jobs that are gained. The role of AI
is not to replace humans, it is to augment humans.
It is about helping us do what we do better.” From
our research, the near-term outlook in particular
is positive.
AI is creating new job roles in many
organizations. 4 out of 5 executives in our survey
of large organizations say AI has created new job
roles (see Figure 7). Most of the new jobs are also
at a senior level. 2 in 3 new jobs (67%) were being
created at the grade of manager or above.
AI is augmenting human output and hasn’t
negatively impacted jobs. A majority of
organizations (63%) have not seen AI produce a
negative effect on jobs. Among organizations that
have implemented AI at scale9
, more than three in
AI is creating new job roles
in organizations
Organizational level at which most
new roles are generated by AI
83%
17%
15%
18%
41%
19%
7%
Staff Members Coordinators
Managers Directors C-suite
Yes No
Figure 7. Four out of five organizations say AI has created new roles in their organizations
Source: Capgemini Digital Transformation Institute, State of AI survey, N=993 companies that are implementing AI,
June 2017
4 out of 5 organizations say AI has generated new roles

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Percentage of organizations believing in an augmented future
Implementation as pilot Implementation at scale
Our organization ﬁrmly
believes that machines can
greatly augment human
output
AI will make complex jobs
easier
Intelligent machines will
co-exist with us 88%
76%
86%
68%
89%
74%
five (63%) said that AI has not destroyed any jobs
in their organization. This is in line with what several
industry executives we spoke to said. Mohammed
Marikar, director at Royal Bank of Canada says,
“A lot of commentary confuses AI success in very
narrow fields, such as playing Go, with the general
intelligence needed to carry out most jobs. The
reality is that the most advanced systems are yet to
demonstrate anything approaching what we would
consider ‘common sense’ and cannot operate
without human direction.”
In fact, most organizations, as Figure 8 shows, see
machines as complementary to humans. They also
believe that AI will make complex or difficult jobs
easier. An executive from a mining company we
spoke to pointed out that new technologies make
it easier to attract employees. This is because they
can rely on autonomous vehicles, robotics and
smart analytics to run their mines and employees
do not need to be physically co-located in the often
uncomfortable terrain.
Of course, organizations will need to support their
people in this new future through skills training.
We found that 71% organizations have proactively
initiated up-skilling and re-skilling employees with
new skills to deal with the impact of AI. As the
CTO of a large, multinational technology firm says:
“Organizations should not think in terms of how AI
displaces their workforce, but how to improve the
reach of their workforce. And we, as employees,
need to learn and understand how we can make
ourselves better with the additional benefit we get
from augmentation.”
Figure 8. Organizations believe in co-existence of AI and humans
Source: Capgemini Digital Transformation Institute, State of AI survey,N=993 companies that are implementing AI,
June 2017

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Use Cases: Organizations are missing
a bigger opportunity by ignoring the
low-hanging fruit
Our analysis of the implementation of over 50 AI use cases shows that many organizations are jumping
straight to some of the most challenging use cases. However, only small minorities are focusing on use
cases that are not only easy to implement, but have a high benefit upside.
Average % share of organizations implementing any use case in the quadrant
Need to Do
Can Do Must Do
Complexity
Benefits
Chat bot/Virtual assistant
Facial
recognition
Contextual/predictive
customer care
Product or services
recommendations
Trading
Strategies
Network
security
Analyze
consumer
behavior
Reduce Revenue
ChurnFault
detection
Tailoring AI to help
developers create
new tools
Anomaly
detection
Decision Support
Image/video
recognition
Position matching
Optimizing recruitment
of top talent
Lead generation and tracking
Audience
targeting
Automated trading and
stock investment
Churn detection
Regulatory
Compliance
Forecasting
Real-time bidding
platforms
Detecting high
potential
employees/low
performers
Programmatic media buying
Risk
Management
Predictive maintenance
New product
development
Personalized
customer care
Optimizing skills mobility
Demand and inventory
management
IT Compliance
Personalizing
shopping
experience
Supply chain
design
Sentiment
analysis
Optimizing career path
Identifying talent
for training
Low High
LowHigh
Voice
recognition
and
authentication
Do Case-by-Case
34% 58%
46%27%
Figure 9. Distribution of use cases by benefits and complexity
High
Figure 9. Distribution of use cases by benefits and complexity
As Figure 9 shows, we segmented the use cases
by their complexity and the benefit upside that
organizations can expect to see. We found that
many organizations are currently tackling the most
complex and high benefit AI use cases:
• Over half of organizations (58%) are tackling
“need to do” use cases (those defined by high
complexity and high benefit).
• However, fewer (46%) are tackling what we call
“must do” use cases, which are low-hanging fruit
in the sense that they are of high benefit but low
complexity. Only about a fifth (20%) of companies
are implementing “must do” use cases at scale.
Neglecting these “must do” AI initiatives—that span
sectors—is a missed opportunity. Examples of these
use cases include:
58%
Average share
of organizations
implementing a
high complexity
and high benefit
use case

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Open Sourcing AI Technologies
A defining characteristic of the growth of AI technologies is the open sourcing of key technologies by digital
leaders. All the major tech companies are keen to have more developers on their platforms. This trend began
with Google making its TensorFlow Platform open-sourced in 2016 (Facebook then open-sourced Caffe, its
flexible deep learning framework, and Amazon did the same with MXNET). For traditional organizations willing
to find real-world applications for their business challenges, these platforms are an interesting avenue.
• Fault detection and performance measurement:
At a leading global mining company, quality issues
were detected too late during the manufacture of
aluminum tanks. By using an AI-based predictive
model, the organization was able to optimize
product quality, yield, and energy consumption.
The company was also able to better predict
product quality, and product lifecycle with 70%
accuracy10
.
Average % share of organizations implementing any use case in the quadrant
Can Do Must Do
Benefits
Product or services
recommendations
Reduce Revenue
ChurnFault
detection
Lead generation and tracking
Automated trading and
stock investment
Churn detection
Regulatory
Compliance
Forecasting
Real-time bidding
platforms
Detecting high
potential
employees/low
performers
Optimizing career path
Low High
Low
46%27%
Low High
LowHighComplexity
Benefits
Chat bot/virtual assistant
Facial recognition and
consumer identification
Contextual/predictive
customer care
Analyze
consumer behavior
Reduce Revenue
Churn
Automated trading and stock
investment
Regulatory
Compliance
Forecasting
Risk Management
Build more profitable
business models
Model financial transaction and
consumer history
Must Do
Use Cases
Product or services
recommendations
Trading Strategies
Network security
Fault Detection and
performance
measurement
Figure 9. Distribution of use cases by benefits and complexity (cont.)
• Automated trading: UBS recently implemented
a program for dealing with clients’ post-trade
allocation requests. The system scans client
emails, looks for details on how they want to
divide large block trades between funds, and
then processes and executes the transfers. This
would take a typical investment banker about 45
minutes, but the system can do it in less than two
minutes. This frees up bankers’ time for more
value-added activities11
.
20%
Share
of organizations
implementing
AI who deploy
“must do” use
cases at scale

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Organizations focusing
significant efforts on “must
do” use cases achieve
greater benefits than more
slimline approaches
As Figure 10 shows, we found that organizations
implementing a large number of “must do” use cases
(75% of all cases) drive significantly higher benefits
than those implementing a smaller share (25%). For
instance, those making large-scale efforts are able
to reduce churn by up to 26% on average, whereas
those with a more slimline approach only achieve
about 8% churn reduction.
Increased focus on “must do” use cases improves
benefits across both consumer facing and
operational initiatives. As Head of Data Science at
one of the largest Australian banks puts it: “There
are a lot of benefits from AI; there is efficiency
improvement, enhanced customer experience,
speed to market. At the operational side there is
optimization of operations, of workload, of credit
card payment and issuance.”
8%
26%
25%
24%
23%
22%
24%
21%
21%
21%
21%
20%
11%
11%
11%
11%
13%
13%
12%
10%
10%
10%
Reduced churn
Reduced customer complaints
Reduced false-positives
Greater legal/regulatory compliance at lower cost
Increase in inbound customer leads
Reduced operational cost due to process improvement
Enhanced customer satisfaction (increase in NPS)
Increase in sales of new products and services
Increase in operational efﬁciency
Increase in sales of traditional products and services
Enhancement in employee productivity
Average gain of implementers of must do use cases
over low-implementers (percentage points)
Low implementers of must do use cases High implementers of must do use cases
Figure 10. Organizations implementing a large amount of “must do” use cases drive increased benefits
26%
vs. 8%
Improvement in
churn reduction
observed by
high vs. low
implementers of
“must do” use
cases

15
49%
41%
36% 34%
31%
26%
20%
36%
Share of AI implementers that are deploying AI at scale (by sector)
Telecom Retail Banking Utilities Insurance Automotive Manufacturing Overall
Organizations implementing AI at scale
One in three companies implementing AI is doing so at scale
On average, over a third (36%) of companies currently launching AI initiatives implement them at scale. In
other words, they are going beyond small pilots and test projects and adopting AI applications at a larger
scale—across business units, functions, or geographies (see Figure 11). Progress is most advanced in
telecom, retail and banking.
“AI has potential implementations across all sectors
that have learned to understand themselves as
an information processing business; particularly
financial services and telecom.” —Chris Nicholson,
Co-founder and CEO, Skymind—data analysis and
machine intelligence start-up.
There are a number of drivers behind this trend:
For sectors such as financial services, regulatory
compliance requirements are a key driver. AI can
play a significant role in the effective and consistent
execution of repetitive, process-driven activities in
compliance. As Michael Schrage, research fellow
at the MIT Sloan School’s Initiative on the Digital
Economy, says: “AI will most quickly enter the
industries that are most regulated.”
• Sectors that are consumer-facing, where
hyper-personalization and churn prevention
is key to growth, tend to see the highest
adoption of new data-driven technologies.
They are closely followed by operations-
centric sectors such as manufacturing,
automotive and utilities that try to link new
data-driven technologies with sensors
and Internet of Things (IoT) to optimize
their operations.
June 2017
Figure 11. Telecom, Retail, and Banking have seen the highest implementation of AI at scale

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At a country level, India and Australia are leading
the way in implementing AI at scale (see Figure 12).
There are several potential reasons India has a strong
position. First, the country has taken center stage
for companies setting up innovation centers. Our
2016 innovation center research shows that India
is the second-largest global site for new centers
58%
49%
44% 42%
35% 32% 31%
24%
21%
36%
Share of AI implementers that are deploying
AI at scale (by country)
India Australia Italy Germany UK US Spain Netherlands France Average
Percentage of organizations already implementing AI at scale
set up by large and traditional organizations12
, and
many innovation centers are increasingly focusing
on AI13
. Second, the government’s support through
initiatives such as “Digital India” creates a favorable
regulatory environment.
Figure 12. India leads in AI implementation at scale
June 2017

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1. Interact (talk/listen)
4. Analyze (think)
5. Service (act)
2. Monitor (watch)
3. Knowledge (remember)
Interact
Monitor
Service
Analyze
Knowledge
Where should organizations invest?
Identify areas where AI can
create the most significant,
long-term advantage
Organizations need to have a clear view of where
AI can create the most enduring advantage for
them and their customers. For Jonas Albertson,
Managing Director, Atlas Copco, focus is a key
differentiator. “The benefits of AI are everywhere.
I think it is more the maturity and the ability to
drive the necessary change into the organization
that differentiates organizations,” he says. Being
smart about where the impact will be felt is key
according to Microsoft’s Lili Cheng, who says: “Most
people never dreamed how the web browser and
connecting to the internet would change daily life.
In contrast, the term AI motivates us to question
how technology will transform the way we work and
live. This change is inspiring, because we want more
people to participate in imagining and designing
our future.” Our ‘Five senses of AI’ framework can
help identify where AI can make the most impact
(see Figure 13). Read more about the framework
at: Capgemini.com “The five senses of Artificial
Intelligence.”
Figure 13. Five senses of AI
Source: Capgemini, “The five senses of Artificial Intelligence: Christopher Stancombe”, May 2017

18
Pinpoint use cases where
AI can create most value
for your organization
Once the key areas (e.g., service, interactions, or
knowledge) have been identified, organizations must
focus their efforts on targeted use cases that meet
two criteria:
1. They are not too complex to implement—to avoid
the risk of failure or suboptimal results
2. They drive significant benefits—to ensure a faster
payback or breakeven.
Clearly, finding the optimal use case can entail
significant effort. However, our analysis points to
certain areas where every industry can start looking.
For each industry in our survey, we recommend a
set of use cases that are expected to yield greater
benefits. These are “must do” use cases—in the
sweet spot of high benefit and low complexity—which
have yet to see a significant level of implementation
(see Figure 14). By focusing on these use cases,
firms may well gain a competitive advantage since
few competitors will have implemented them.
Low hanging fruit – Least adopted “must do” use cases
Automotive
Manufacturing
Banking
Insurance
Managing risk
Reducing revenue churn
Forecasting
Analyzing consumer behavior
Managing risk
Forecasting
Detecting faults and measuring asset performance
Retail Forecasting
Tracking customer history/transaction
Utilities Analyzing consumer behavior
Trading strategies
Forecasting
Telecom Reducing revenue churn
Forecasting
Managing risk
Tracking customer history/transaction
Trading strategies
Automated trading and stock investment
Trading strategies
Complying with regulations
Industry
Figure 14. Every industry can benefit from a set of ‘must do’ use cases

19
Getting started with an AI strategy and
roadmap: key steps
Start by identifying your AI leadership
The journey begins with identifying a leader to spearhead AI initiatives: ideally a CXO who reports to the
CEO. As Figure 15 shows, organizations with a dedicated AI head outperform firms with no clear leadership
(and all AI initiatives running disparately) in several benefit areas. For instance, firms with a dedicated AI lead
observed a 17% increase in inbound customer leads using AI vis-a-vis just 9% increase for firms having
no clear AI leader. Only about a third (37%) of organizations implementing AI have a dedicated AI head or
lead in their firm.
For Michael Schrage, research fellow at the MIT Sloan School’s Initiative on the Digital Economy, leadership
is critical in AI: “What I have observed in companies that do AI well is they have a policy and process around
data governance and treating data as an asset. They also have either key problems or business cases that
lend themselves to known structures for AI and machine learning algorithms. They view AI as an enabler.
Basically, they are not just well-managed, they are well led.” Part of the challenge for leaders is to set a
compelling strategic vision while harnessing the creativity of employees.
Benefits (in percentage points) of implementing
AI based on organization category
9% 9%
12% 12%
10%
19% 19%19%
18%17%
Greater legal/
regulatory compliance
at lower cost
Increase in inbound
customer
leads
Reduced operational
cost due to process
improvement
Increase in sales of
traditional products
and services
Increased operational
efficiency
Firms with disparate initiatives with no clear AI leadership Firms with a dedicated AI head/lead
Figure 15. Organizations with a dedicated AI leader garner higher benefits than standalone initiatives with no
clear leader
37%
Share of
organizations
implementing
AI that have a
dedicated AI
leader

20
12%
18%
10%
17%
10%
17%
11%
18%
12%
18%
12%
18%
Reduced
operational cost
due to process
improvement
Increase in sales
of traditional
products and
services
Greater legal/
regulatory
compliance at
lower cost
Increase in
inbound customer
leads
There is no clear process to identify initiatives to be implemented
A central team for AI decides the initiatives to be implemented
Enhanced customer
satisfaction
(increase in NPS)
Increase in
sales of new
products
and services
9% 9%
10%
11%
10%
18% 19%
18% 18%17%
Greater legal/
regulatory compliance
at lower cost
Reduced false-posi-
tives
No clear roadmap of how to implement AI initiatives in a phased manner
Clear roadmap of how to implement AI initiatives in a phased manner
Reduced
churn
Increase in sales of
new products and
services
Reduced customer
complaints
Set up a governance
structure for AI initiatives
to drive greater benefits
A clear governance framework is essential to secure
AI’s full potential. Our analysis shows that a central
governing body for AI implementation increases
benefits in multiple areas (see Figure 16). However,
only about 37% of organizations implementing AI
have a central team that decides which AI initiatives
will be implemented.
Similarly, organizations with a clear roadmap
perform better than organizations that score low on
roadmap clarity. Fidaa Chaar, Global Head of Client
Services, Société Générale, says: “Implementing
AI is a strategic decision. So it should first be a
top-down decision. But a top-down decision not
about the business case, but about the intention
of the company. You then need to gather the right
use cases and ideas using a bottom up approach.
So, decisions and communication top down, but
gathering of ideas and real-life use cases bottom
up.”
Figure 16. Mature governance drives greater benefits
17% vs.
10%
Increase in inbound
customer leads
observed by firms
with a central
governance
team vs. no clear
governance for AI
initiatives

21
A roadmap for making systematic progress on AI implementation in large organizations
Source: Capgemini Digital Transformation Institute Analysis
Discover Devise Deploy Sustain
Craft a vision
for what the
organization
wants to
achieve with AI
Explore AI’s
initial, high value
use cases and
technologies
needed to
implement them
Start building
capabilities to
develop AI use
cases
Launch proofs of
concept
and pilot
implementations
on selected use
cases
Scale the
pilots to
business-wide
scope
Establish
governance to
prioritize AI
projects
Continuous
transformation
Nurture an
AI/insight-driven
culture
1
2
3
4
Win over employee trust
and support by allaying
their concerns
As organizations look to harness the power of
AI, they must overcome a number of challenges
(see Figure 17). The main cultural issue to sway is
employee concerns about the impact of AI on jobs.
In our survey, 61% of organizations believe that the
majority of their employees worry about AI’s role in
potential job losses. It makes employees anxious
about working with machines or AI applications and
fuels resistance to change—another major hurdle
in AI implementation.
Leaders avoid falling into this trap by openly
communicating with employees and involving them
at each step in the journey. They demonstrate how
AI will augment employees’ work and how training
and other programs will increase their comfort
level with the technology. For instance, Michael
Natusch, Global Head of AI at Prudential, told us:
“We are running a training program for employees
from all BUs to learn Alexa programming skills. The
primary objective is not to develop AI solutions, but
we are trying to increase the level of confidence that
our colleagues have with AI. We hope to build an
understanding of what those things can, and cannot
do, as both of them are obviously equally important.”
Our recent research on digital culture in organizations
found that cultural issues are the biggest hurdles
to digital transformation14
. According to Jonas

22
64% 63% 61%
57% 57%
Key challenges in AI implementation
Lack of appropriate
skills and talent within
the organization
Cybersecurity and
data privacy
concerns
Resistance to
change
Our organization
ﬁrmly believes that
human judgments
are superior to
machine judgments
Majority of employees
are concerned about
the impact of AI on
job losses
Share of organizations implementing AI at scale
Share of AI implementers that are deploying AI at scale (by sector)
Prepare enterprise data and
skills to harness AI’s full potential
Building a team of AI specialists who can
conceptualize AI use cases, code, and implement
them, is vital. Nearly two-thirds of organizations
(64%) consider the lack of skills to be the biggest
challenge to AI implementation. Ashwini Ashokan,
CEO and Co-founder Mad Street Den—a computer
vision and Artificial Intelligence startup—says: “I do
not think the world has enough people that know
how to build AI. There is an extreme scarcity of
talent right now.”
Similarly, the availability of data to train and test
AI systems is critically important. Insufficient
or irrelevant data jeopardizes the accuracy of
AI applications, rendering them unreliable and
unusable. Senior Director, Marketing at an open
source deep learning platform benefits puts it as:
Figure 17. People and cultural issues dominate the top challenges in AI implementation
Albertson, Managing Director of Atlas Copco: “By
far the biggest challenge is not technology. In fact,
it is the change management of the people.”Michael
Schrage, research fellow at the MIT Sloan School’s
Initiative on the Digital Economy, adds: “There are
human issues that have nothing to do with the
capabilities of the technology and everything to do
with the culture of the organization and the quality
of its leadership.”
“For a company to be successful, I think I will always
go back to having a data science team and having
the readiness for data and for data analysis. I believe
organizations who only look at their current business
model without even paying attention to data, usually
lag behind.” Chris Nicholson, Co-founder and CEO,
Skymind—a data analysis and machine intelligence
start-up—agrees: “Leaders understand that AI is
much more than just tuning an algorithm, so you
have got to be gathering the data that is relevant
to your problem.”
Our research shows that organizations with the right
combination of data and skills derive significantly
greater benefits from AI than those who have yet
to develop them (see Figure 18).
“I would say leaders truly understand the
differentiating value of AI, because they have already
brought in people that understand the principles

23
8% 9% 10% 9% 10%
20% 20% 20%
19% 19%
Increase in sales
of new products
and services
Increase in sales
of traditional
products and
services
Reduce
customer
complaints
Greater
legal/regulatory
compliance at
lower cost
Reduced
false-positives
Organizations with low data and skills readiness Organizations with high data and skills readiness
of AI and understand how to potentially apply AI
to their organization. The big differentiator is that
leaders are already investing in data science and
while others are not.” reflects Stephen Epstein, VP
Product Marketing, Digital Reasoning—a cognitive
computing and AI startup.
Pursue rapid experimentation
and scale the successful use
cases to the organizational level
The key finding of our research is that organizations
deploying AI at scale are reaping its benefits.
However, selecting the right use cases to scale is
key. Organizations can start by experimenting with
pilots and launching them on selected use cases in
one or more of the following modes:
• Incubating the projects in an innovation lab or AI
technology center of excellence
• Working with the startup ecosystem
• Working with technology partners to leverage
their innovation network.
Many organizations have started setting up big
data platforms and operations in the last few years.
Organizations should also consider leveraging some
of these systems and processes to speed up AI
experimentation. Once the value from a use case
Figure 18. Having the required data and skills within the organization is paramount to driving critical AI benefits
has been established, it must be scaled to the
organizational level to maximize its potential. Senior
Director, Marketing at an open source deep learning
platform, provides some clues on how to scale pilots,
“Digital transformation is actually a long journey.
Organizations typically start from micro services
that tackle a smaller problem. And then people
use these micro services as foundation to build
up bigger services, to serve a bigger use case and
that’s how they move on with AI implementations.”
Conclusion
For the business community, Artificial Intelligence
has spent a frustratingly long time in hype mode.
These complex and cutting-edge technologies
promised to deliver so much, but for a long time real
evidence of their concrete application in a business
context proved elusive. This is now changing.
With explosive data growth, increasing computer
processing power, and strengthening AI technology
foundations, leading businesses are putting AI into
practice, generating enviable results. We hope you
have found this thought-piece a useful and practical
guide for taking this technology from hype into reality
and, creating a long-term, sustainable approach to
generating concrete value from AI.
Source: Capgemini Digital Transformation Institute, State of AI survey,N=993 companies that are implementing AI, June 2017

24
Research Methodology
Our research drew on quantitative and qualitative techniques. Between March and June 2017 we surveyed
993 respondents from companies implementing AI across a range of sectors and countries:
• Automotive, Banking, Insurance, Manufacturing, Retail, Telecommunications, and Utilities
• The United States, United Kingdom, Australia, France, Germany, India, Italy, the Netherlands, and Spain
We also conducted interviews with academics and industry leaders, examining the impact of AI, implementation
challenges, and emerging best practices.
Respondents by sector
Respondents by role
33%
2%
14%23%
11%
17%
Respondents by geography
5%
24%
19%
18%
14%
10%
10%
6%
6%
7%
34%
14%
9%
8%
8%
8%
CXOs
Chief Analytics Officer/
Chief Data Scientist/
Chief Data Officer
President Vice
President
Director Senior Director
General Manager
Senior Manager
Banking
Retail
Telecommunications
Insurance
Manufacturing
Utilities
Automotive
US
UK
India
Australia
Italy
Germany
Spain
France
Netherlands
Respondents by role
33%
2%
14%23%
11%
17%
5%
24%
19%
18%
14%
10%
10%
6%
6%
7%
34%
14%
9%
8%
8%
8%
CXOs
Chief Data Officer
President Vice
President
General Manager
Senior Manager
Banking
Retail
Telecommunications
Insurance
Manufacturing
Utilities
Automotive
US
UK
India
Australia
Italy
Germany
Spain
France
Netherlands
Respondents by role
33%
2%
14%23%
11%
17%
5%
24%
19%
18%
14%
10%
10%
6%
6%
7%
34%
14%
9%
8%
8%
8%
CXOs
Chief Data Officer
President Vice
President
General Manager
Senior Manager
Banking
Retail
Telecommunications
Insurance
Manufacturing
Utilities
Automotive
US
UK
India
Australia
Italy
Germany
Spain
France
Netherlands

25
Discover more about our recent research on digital transformation
The Disconnected
Customer: What digital
customer experience
leaders teach us
about reconnecting
with customers
Consumer Insights:
Finding and Guarding
the Treasure Trove
Making the Digital
Connection: Why
Physical Retail Stores
Need a Reboot
Going Big: Why
Companies Need to
Focus on Operational
Analytics
Driving the Data Engine:
How Unilever is Using
Analytics to Accelerate
Customer Understanding
Domino’s Pizza: Writing
the Recipe for Digital
Mastery
Privacy Please: Why
Retailers Need to
Rethink Personalization
Fixing the Insurance
Industry: How Big Data
can Transform Customer
Satisfaction
The Digital Culture
Challenge: Closing the
Employee-Leadership
Gap
The Currency of Trust: Why
Banks and Insurers Must
Make Customer Data Safer
and More Secure
Digital Transformation
Review 6: Crafting a
Compelling Digital
Customer Experience
Cracking the Data
Conundrum: How
Successful Companies
Make Big Data
Operational

26
Subrahmanyam KVJ
Senior Manager, Digital Transformation Institute
subrahmanyam.kvj@capgemini.com
@Sub8u
Subrahmanyam is a senior manager at the Digital
Transformation Institute. He loves exploring the impact
of technology on business and consumer behavior
across industries in a world being eaten by software.
About the Authors
Ron Tolido
Executive Vice President, Global CTO,
Insights Data
ron.tolido@capgemini.com
@rtolido
Executive Vice President and Global CTO, Capgemini
Insights Data. Director, The Open Group. Certified
Master Architect. Lead author of Capgemini’s
TechnoVision trend series. Digital Transformation
ambassador. Guest lecturer executive master programs
of Nyenrode and TIAS business schools. Based in the
Netherlands, Mr. Tolido currently takes interest in the
new data landscape, cognitive and AI systems, API
management, digital strategy, enterprise architecture,
DevOps, application rationalization, disruptive
technology and – above all – radical simplification.
Jerome Buvat
Global Head of Research and Head,
Capgemini Digital Transformation Institute
jerome.buvat@capgemini.com
@JeromeBuvat
Jerome is the head of Capgemini’s Digital Transformation
Institute. He works closely with industry leaders and
academics to help organizations understand the nature
and impact of digital disruptions.
Christopher Stancombe
Executive Vice President
christopher.stancombe@capgemini.com
Christopher is Head of Industrialization and Automation
at Capgemini. He leads Capgemini’s response to
demand in areas such as artificial intelligence, cognitive
computing, machine learning and robotics making sure
that they are well defined and become a key part of our
business vocabulary. Chris is passionate about providing
relevant, practical advice to clients on how an intelligent
approach to automation can deliver real business value.
The Digital Transformation Institute
The Digital Transformation Institute is Capgemini’s in-house think tank on all things digital. The
Institute publishes research on the impact of digital technologies on large traditional businesses.
The team draws on the worldwide network of Capgemini experts and works closely with academic
and technology partners. The Institute has dedicated research centers in the United Kingdom
and India.
dti.in@capgemini.com
https://www.capgemini.com/the-digital-transformation-institute
The authors would like to thank Frank Wammes from Capgemini CTO Network; Xavier Chelladurai, Prasad Ramanathan from Capgemini Group
Competitiveness; Rangaramanujam A V, Mamatha Upadhyaya, Saktipada Maity, Eva Terni from Capgemini Insights Data; Olivier Auliard, Marc
Chemin, Volker Darius, Cyril Francois, Marie-Caroline Baerd, Julia Thieme from Capgemini Consulting; Ben Gilchriest from Capgemini US, Pierre-
Denis Autric from Capgemini France, Saugata Ghosh from Capgemini Australia, Timo Pfrommer from Capgemini Germany; Ted Washburne, Roberto
Garcia Godoy from Capgemini Financial Service; Josean Mendez, Simon Bachelet, Jean-Claude Guyard from Capgemini AIE network, Menno Van
Doorn from Sogeti Labs and Philippe Durante, Anne Aussems from Capgemini IBM Alliance for their contribution to this research.
Anne-Laure Thieullent
Vice President, Capgemini Insights Data
annelaure.thiellent@capgemini.com
@ALThieullent
Anne-Laure is Vice President and Global Head of
Manufacturing, Automotive and LifeSciences for
Capgemini’s Insights Data practice. She advises
Capgemini customers on how they should put Big Data
technologies to work for their organization. Her passion
is to bring technology, business transformation and
governance together and take customers to where they
want to be as data-driven and innovative companies.
She spent the first 10 years of her Capgemini adventure
delivering Enterprise Data Warehouse solutions on
Teradata for a variety of customers, including the 3
main French telco operators.
Amol Khadikar
Manager, Capgemini Digital Transformation
Institute
amol.khadikar@capgemini.com
@amolkhadikar
Amol is a manager at the Digital Transformation Institute.
He keenly follows the role played by mobile, software
and data science in digitally transforming organizations.
Apoorva Chandna
Senior Consultant, Capgemini Digital
Transformation Institute
apoorva.chandna@capgemini.com
@ChandnaApoorva
Apoorva is a senior consultant at the Digital
Transformation Institute. She keenly follows digital
disruptions and evaluates impact of emerging
technologies on business.

27
References
1. BusinessWire, “Cosabella’s Move To AI Moves a Lot More Lingerie”, March 2017
2. HBR, “How Harley-Davidson Used Artificial Intelligence to Increase New York Sales Leads by 2,930%,”
May 2017
3. Bloomberg, “JPMorgan Software Does in Seconds What Took Lawyers 360,000 Hours”, February 2017
4. Siemens, “Brains in Every Burner”, February 2017
5. Company website
6. Forbes, “How Artificial Intelligence is Transforming Enterprise Customer Service,” February, 2017
7. AEI, “What the story of ATMs and bank tellers reveals about the ‘rise of the robots’ and jobs”, June 2016
8. The Wall Street Journal, “We Survived Spreadsheets, and We’ll Survive AI”, August 2017
9. By implementing at scale, we refer to implementations that go beyond small pilot and test projects
and are adopted at a larger scale in an organization across business units, functions or geographies.
10. Capgemini Client
11. Financial Times, “Robots enter investment banks’ trading floors”, July 2017
12. Capgemini Client Capgemini Consulting, “The Rise of Innovation Empires Worldwide”, May 2016
13. Capgemini Consulting, “The Rise of Innovation Empires Worldwide”, May 2016
14. Capgemini Consulting, “The Spread of Innovation around the World: How Asia Now Rivals Silicon Valley
as New Home to Global Innovation Centers”, December 2016
15. Capgemini, “The Digital Culture Challenge: Closing the Employee-Leadership Gap”, June 2017

The information contained in this document is proprietary. ©2017 Capgemini. All rights reserved.
Rightshore®
is a trademark belonging to Capgemini.
About Capgemini
With more than 190,000 people, Capgemini is
present in over 40 countries and celebrates its
50th
Anniversary year in 2017. A global leader in
consulting, technology and outsourcing services, the
Group reported 2016 global revenues of EUR 12.5
billion. Together with its clients, Capgemini creates
and delivers business and technology solutions
that fit their needs and drive the results they want.
A deeply multicultural organization, Capgemini has
developed its own way of working, the Collaborative
Business Experience™, and draws on Rightshore®
, its
worldwide delivery model.
Learn more about us at
www.capgemini.com
About Capgemini Consulting
Capgemini Consulting is the global strategy and
transformation consulting organization of the Capgemini
Group, specializing in advising and supporting
enterprises in significant transformation, from innovative
strategy to execution and with an unstinting focus on
results. With the new digital economy creating significant
disruptions and opportunities, the global team of over
3,000 talented individuals work with leading companies
and governments to master Digital Transformation,
drawing on their understanding of the digital economy
and leadership in business transformation and
organizational change.
Find out more at:
www.capgemini-consulting.com
For more information, please contact:
Global
Marc Chemin
marc.chemin@capgemini.com
Ron Tolido
ron.tolido@capgemini.com
Christopher Stancombe
christopher.stancombe@capgemini.com
Xavier Chelladurai
xavier.chelladurai@capgemini.com
France
Anne-Laure Thieullent
annelaure.thieullent@capgemini.com
Olivier Auliard
olivier.auliard@capgemini.com
India
Rangaramanujam AV
rangaramanujam.av@capgemini.com
Jyoti Chamania
jyoti.chamania@capgemini.com
US
Ben Gilchriest
ben.gilchriest@capgemini.com
Germany
Volker Darius
volker.darius@capgemini.com
Kai-Oliver Schäfer
kai-oliver.schaefer@capgemini.com
Netherlands
Frank Wammes
frank.wammes@capgemini.com
Canada
Alexis Zamkow
alexis.zamkow@capgemini.com
Australia
Saugata Ghosh
saugata.ghosh@capgemini.com

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