Has buzzword proliferation killed AI’s street cred? Enter Pragmatic AI

Close up image of the word AI? on a whiteboard | QAD AI

Key Takeaways

The association of AI with 'latest-and-greatest' products has led to negative perceptions, particularly in high-risk industries, making it challenging for companies to effectively communicate AI's benefits.

QAD advocates for a Pragmatic AI approach, which emphasizes understanding specific outcomes and practical applications, rather than overwhelming clients with technical jargon.

Fear and uncertainty surrounding AI adoption can be mitigated by focusing on short-term benefits and establishing AI as a continuous improvement tool, fostering a clearer understanding of its value.

The prolificity of AI within every industry has unfortunately muddied the waters when it comes to trying to understand the full capabilities on offer. Attaching the AI buzzword to any ‘latest-and-greatest’ product has unwittingly created a negative association.

In a recent study published in the Journal of Hospitality Marketing & Management, products described as using artificial intelligence were less popular, with a stronger negative response for ‘high-risk’ products and services, like medical devices or financial services.

Manufacturing software specialist, QAD, addresses this common misunderstanding by delivering Pragmatic AI, a means in which QAD uses AI to help people solve problems. Glenn Graney, director of Industrial and High Tech, QAD, shared the challenges that came when helping clients approach AI from a pragmatic viewpoint.

“To sell AI as a broad concept is a very difficult thing. It requires a leap of faith on both sides to promote some ROI […] Everyone believes AI is going to make a difference, but where is it going to make a difference?” Graney pondered.

Regarding some of the common issues that are frequently mentioned when talking to clients about AI, Graney said: “When we talk about Pragmatic AI, it includes community process intelligence, which is a data mining tool. But when you go in and tell a customer ‘I have a dating mining tool’, they always ask ‘well, how can you help me?’”, ultimately concluding that most firms were just eager to “be better” but aren’t clear on what they need to do to achieve their goals.

Organizations that specialize in manufacturing enterprise tech, like QAD, can help clients better understand AI capabilities by focusing on the outcomes first, instead of unwittingly drowning someone in incomprehensible tech jargon. By clearly and pragmatically defining the potential benefits that come out of a specific AI-enhanced tool, firms could be more open to accepting the new software.

Ultimately, fear and uncertainty can play a large part in the reluctance to adopt AI tech. By adopting a pragmatic approach, firms can deliver at two levels. First, the outcome-based focus can help deliver short term benefits. Secondly, the familiarity with practical technology lays a foundation for AI as a continuous improvement tool to address whatever additional challenges the future may hold.