Appendix Survey Economic modeling and data science R represents the level and evolution stronger explanatory power in the first i From August to September 2021, To assess companies’ AI maturity, as well of a company’s AI-influenced revenues model of “sustaining at >10%” than Accenture surveyed 1,615 C-suite as other measures of performance, we (sustaining at >10%, reaching >30%) AI differentiation capabilities; in the executives at 1,176 of the world’s largest took the following steps: With i = company, t = 2021 and t-1 = second model of “reaching over >30%”, companies—present in 16 industries and 2018, X includes controls for industry, AI differentiation capabilities have it headquartered in 15 countries. 1. Identified key capabilities of AI firm size and company location stronger explanatory power. In other maturity (country). words, AI foundational capabilities are Interviews and case studies We sought to understand the key essential to building the necessary We interviewed 25 CEOs, Chief Data capabilities that contribute to reaching The model is a linear probability Lasso foundation for organizations to enter Officers and Chief Analytics Officers. both an “entry” level of AI maturity (i.e. model, a K-fold cross-validation with the AI race. Meanwhile, AI differentiation We also interviewed Renée Richardson deriving at least 10% of revenues from 10 folds performed. capabilities are key for organizations to Gosline (Senior Lecturer at MIT Sloan AI-influenced initiatives from 2018 to reach the next level of AI maturity. School of Management and Principal 2021) and a higher level of AI maturity 2. Defined "foundational" and Research Scientist at MIT’s Initiative on (i.e. deriving more than 30% of revenues "differentiation" capabilities 3. Built the AI maturity index the Digital Economy) and Christine Foster from 2018 to 2021). To do this, we built In our models, we classified We built two indexes that measure (Chief Commercial Officer at The Alan two machine learning models that Capabilities and ∆Capabilities as AI companies’ AI foundational capabilities it-1 it Turing Institute), as well as numerous AI account for more than 80 capabilities foundational capabilities; Capabilities and AI differentiation capabilities, experts at Accenture. Through research that contribute to the two different Interactions are—as the name respectively, as identified by our two it,t-1 and client work, we also developed levels of AI maturity (see box below). suggests—capabilities with interaction, models. An overall AI maturity index over 40 company case studies on AI with strong senior sponsorship is built as the arithmetic average of transformation. R = β +βX + β Capabilities + and a well-defined AI strategy. We both AI foundational index and AI i 0 1 it 2 it-1 β ∆Capabilities + β Capabilities classified these interaction terms as AI differentiation index, which is indicative 3 it 4 Design thinking Interactions + e differentiation capabilities. of their probability of achieving high it,t-1 it We ran a MURAL session with more than AI-influenced revenue. The median 15 senior data scientists to validate our AI From our models, we discovered maturity index of all companies is maturity model. that AI foundational capabilities have 36/100. The art of AI maturity—Advancing from practice to performance 35