Businesses adopting artificial intelligence (AI) are outpacing their competitors, with Bridge lineIt is FalconSearch report new customers every week, IBM users of open source AI achieve higher returns, and MIT research shows that advanced AI users outperform their industry peers. However, a fourth-quarter loss at Bridgeline highlighted the sector’s uneven growth trajectory.
Bridgeline Reports AI Growth Despite Mixed Fourth Quarter Results
AI-powered marketing technology company Bridgeline reported that HawkSearch, its AI-powered search product, delivered significant growth in 2024, despite a quarterly net loss of $432,000.
The company launched five new AI products under its HawkSearch brand and noted new customer installations almost every week throughout the year. The company has deployed conversational search functionality powered by generative AI, as well as intelligent tools to analyze PDF content.
“HawkSearch is the leader in AI-powered product discovery,” Bridgeline CEO Ari Kahn said in the press release. “This year, we nearly doubled our sales contracts and saw net revenue retention above 103% for HawkSearch.”
Total revenue for the fourth quarter reached $3.9 million, up slightly from $3.8 million in the same period last year. The company said it signed 83 new license sales in fiscal 2024, adding $2.1 million in annual recurring revenue.
Bridgeline enters 2025 with what it calls the largest sales pipeline in company history, driven by growing demand for AI-enhanced search capabilities among e-commerce and B2B customers.
Businesses see ROI from open source AI
Companies that use open source AI tools see better returns on investment than those that don’t, according to a Dec. 19 study. IBM study.
The global survey of more than 2,400 IT decision-makers found that 51% of companies using open source AI reported positive results, compared to 41% of those not using open source AI. The study indicates a growing shift toward open source adoption, with 48% of companies planning to leverage these tools in 2025.
Despite continued economic uncertainties, 89% of organizations plan to maintain or increase their investments in AI next year. Nearly two-fifths of those increasing their spending hope to increase their AI budget by 25% to 50%.
“Companies continue to rapidly advance their AI strategies, with no signs of slowing down. » Maribel Lopezof Search Lopezwho collaborated on the study, said in a statement. “They are leveraging hybrid cloud strategies and open source to drive AI innovation. »
The study found that businesses are primarily focusing their AI investments on IT operations, with 63% of respondents citing it as their top priority, followed by data quality management at 46%.
MIT Study Links AI Adoption to Better Business Performance
Companies with advanced AI capabilities tend to perform better financially than their industry peers, according to research released by MITIt is Information Systems Research Center.
The study of 721 companies found that organizations in the two highest stages of AI maturity reported above-average financial performance, while those in earlier stages performed below the industry average. sector.
Only 7% of companies surveyed are at the highest “AI Future Ready” stage, where AI is integrated into decision-making processes. Most companies are still in the early stages of development, with 28% in the experimental phase and 34% implementing pilot programs.
“Companies can use the MIT CISR Enterprise AI Maturity Model to assess their current capabilities, identify gaps, and create a roadmap for improvement. » Stephanie Woernersaid MIT Sloan principal investigator and director of the MIT CISR, in the release.
The research team, led by Woerner, Pierre Weill And Ina Sébastiendeveloped the model based on survey data and interviews with executives from nine companies. Their findings suggest that companies should take decisive action to develop AI capabilities, regardless of their current stage.
