How Artificial Intelligence and Algorithms are Transforming Innovation Management

Imagine artificial intelligence developing your next product on its own without your involvement. Do you want artificial intelligence to take over the creative processes involved in the innovation process? Do you have relevant data and the knowledge to put it to good use? Is AI-supported innovation for your everyday life a symphony or the music of the future, depending on your perspective? In our recently published AI study, you can read about how 163 managers responded to these and other questions, as well as the implications of their responses.

Artificial Intelligence as a Revolution in Productivity and Efficiency

Artificial intelligence and robots are becoming increasingly important for innovation in an era of increasing digitalization; there are already many individual tasks that can be improved, accelerated, or even partially autonomous by robots through the use of artificial intelligence. So that's the theory.

The most significant obstacles continue to be a lack of understanding and knowledge. For many people, artificial intelligence (AI) remains a mystery; it is a black box in which it is impossible to know exactly what is happening.

Participant in our artificial intelligence study

However, there is a significant gap between imagination and actual use: only a small number of people actually use artificial intelligence to innovate. The current high costs, as well as the still-frequently-inadequate resources and capabilities within a company, act as stumbling blocks. Experiments in the context of artificial intelligence innovation, on the other hand, are relatively simple to test. Using artificial intelligence, we discovered that managers and experts anticipate a significant increase in autonomous innovation over the next 10-15 years, and that the topic will need to find a place on the maps of innovation managers, artificial intelligence experts, and management as fertile new territory.

According to the findings of the study, artificial intelligence has the potential to simplify certain innovation tasks throughout the innovation process, while also increasing their efficiency and providing them with additional information. New algorithms and ever-increasing amounts of data allow for better analysis, more accurate forecasting, and more risk-free decision-making as a result of technological advancement. Machines and robots have the potential to significantly improve innovation management, as well as to supplement or even completely replace human innovation teams in the future.

The following are the findings of the study, presented in six theses:

1. The use of artificial intelligence (AI) is becoming increasingly prevalent in the field of innovation, and it reveals tremendous potential, but it still meets with a low level of knowledge and experience.
2. While the practical application of artificial intelligence for analytical innovation tasks is obvious to everyone, the potential for more creative tasks is reserved for companies with prior AI experience.
3. The benefit of artificial intelligence is primarily seen in the improvement of efficiency and less in the development of new business fields or the invention of new innovations, particularly in the case of companies that are still new to the field of artificial intelligence.
4. In the not-too-distant future, artificial intelligence will only provide assistance, not make decisions. For the time being, autonomous artificial intelligence will remain a fantasy.
5. The majority of people think that the organizational framework conditions are favorable and that they encourage the use of artificial intelligence. However, the resources that have been made available are limited.
6. There are a variety of viewpoints on how to implement artificial intelligence for innovation, and there is little agreement, orientation, or guidance on how to do so.

The findings of our study demonstrate that artificial intelligence not only has the potential to generate radically new innovations, but it also has the potential to rethink innovation management. KI heralds the beginning of a new era of innovation. Artificial intelligence and machine learning will be used to support new innovation formats in the future, making them more efficient and effective. It is entirely up to you whether you want to experience this era as a creator or as a participant. The fact that you have had such an experience becomes a critical competitive factor.