Friday, February 9, 2024

g-f(2)1944 Fragmented AI Progress: Differing Paces for Sectors and Demographics


genioux Fact post by Fernando Machuca and Claude


A new study provides a nuanced view of uneven AI adoption patterns in the US, with usage concentrated among larger firms and in sectors like manufacturing, healthcare, and information services.

genioux GK Nugget

"The narrative is that AI is everywhere all at once, but the data shows it's harder to do than people seem interested in discussing." — Fernando Machuca and Claude

genioux Foundational Fact

As of 2017, only about 6% of US companies had adopted AI for production activities, with over 50% usage rates only seen among the largest corporations with over 5,000 employees, pointing to real-world implementation struggles contrary to the hype.

Top 10 Relevant genioux Facts

  1. Indirect measures overstate the pervasiveness of real-world AI adoption compared to direct analysis of how companies employ the technologies.
  2. Beyond firm size, sectoral differences are stark - while around 12% in manufacturing/IT/healthcare leverage AI, the rates are below 5% in areas like retail and construction.
  3. Adoption fractures along geographic lines too - AI usage has clustered in unexpected manufacturing hubs and smaller cities rather than just known tech hub regions.
  4. Startup-level research identifies leadership age, education levels and process innovation priorities as differentiating factors between AI adopters and non-users.
  5. Transition friction related to workflows, routines, and adjustment costs contributes to the sluggish pace of adoption.
  6. Implementation complexity makes AI more comparable to incremental task solutions rather than sweeping digital transformations.
  7. Piecemeal AI automation can lead to suboptimal systems if legacy components need to modernize apace.
  8. The economic impacts include both productivity gains and downsides like job losses for vulnerable worker demographics.
  9. Recent surveys suggest minimal AI adoption expansion over time, still limited to under 4% of US firms.
  10. Fulsome realization of AI's promise requires a clear-eyed perspective on both benefits and costs for different economic stakeholders.


Despite tech hype, real-world AI integration struggles amidst friction points like legacy inertia, piecemeal implementations, and retraining costs - necessitating targeted strategies accounting for an innovation's drawbacks alongside possibilities.


The GK Article

Brian Eastwood, The who, what, and where of AI adoption in America, MIT Sloan, February 7, 2024.

Brian Eastwood

Brian Eastwood contributes to MIT Sloan, sharing insights on AI evaluation, effective data management, and strategic data sharing²³⁴.

Brian Eastwood's work emphasizes the collaborative potential of AI and its role in enhancing human capabilities. ๐ŸŒŸ๐Ÿค–๐Ÿ“š

Source: Conversation with Bing, 2/9/2024

(1) New book explores how AI really changes the way we work - MIT Sloan.

(2) Making the most of AI: The latest lessons from MIT Sloan Management ....

(3) Productivity | MIT Sloan.

(4) Strategy | MIT Sloan.

(5) The who, what, and where of AI adoption in America | MIT Sloan.

Copilot's Summary

Let's delve into the findings from the article titled "The who, what, and where of AI adoption in America":

1. AI Adoption in the U.S.:

  • A new study reveals that artificial intelligence (AI) adoption is unevenly distributed across American companies.
  • In 2017, only 6% of U.S. companies reported using AI for production.
  • AI adoption was concentrated in larger companies and specific industries like manufacturing and information technology.
  • Some cities, including San Francisco, San Antonio, and Nashville, emerged as "superstar" hubs for AI adoption.

2. Measuring AI Adoption:

  • Researchers collaborated with the U.S. Census Bureau and the National Center for Science and Engineering Statistics.
  • They conducted the Annual Business Survey starting in 2018 to directly measure AI usage.
  • The survey collected data from over 447,000 responses and represented more than 4 million firms nationwide.
  • AI adoption was defined as using AI for production, excluding invention or aspiration.

3. Digital Age Arrival:

  • Despite the narrative that AI is ubiquitous, the data shows that AI adoption is challenging.
  • The digital age has arrived unevenly, with some companies leading the way while others lag behind.

4. Implications:

  • These early patterns of AI use foreshadow economic and social impacts beyond initial diffusion.
  • There's a possibility of a growing "AI divide" if adoption remains uneven⁶⁷⁸.

In summary, while AI is making waves, its adoption remains a complex journey, with some companies and cities at the forefront of this transformative technology. ๐ŸŒŸ๐Ÿค–๐Ÿš€.

Source: Conversation with Bing, 2/9/2024

(1) The who, what, and where of AI adoption in America | MIT Sloan.

(2) AI ADOPTION IN AMERICA: WHO, WHAT, AND WHERE by Kristina McElheran ....

(3) AI Adoption in America: Who, What, and Where -

(4) .

(5) American Adoptions.

(6) Adoption Star Of Florida.

(7) Animal Aid Inc..

(8) AI Executives.

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(10) Getty.

The categorization and citation of the genioux Fact post


This genioux Fact post is classified as Breaking Knowledge which means: Insights for comprehending the forces molding our world and making sense of news and trends.

Type: Breaking Knowledge, Free Speech

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