Emergence of AI Powered Enterprise: Strategic considerations for Leaders
The excitement around artificial intelligence is palpable. It seems that not a day goes by without one of the giants in the industry coming out with a breakthrough application of this technology, or a new nuance is added to the overall body of knowledge. Horizontal and industry-specific use cases of AI abound and there is always something exciting around the corner every single day.
However, with the keen interest from global leaders of multinational corporations, the conversation is shifting towards having a strategic agenda for AI in the enterprise. Business heads are less interested in topical experiments and minuscule productivity gains made in the short term. They are more keen to understand the impact of AI in their areas of work from a long-term standpoint. Perhaps the most important question that they want to see answered is – what will my new AI-enabled enterprise look like? The question is as strategic as it is pertinent. For business leaders, the most important issues are – improving shareholder returns and ensuring a productive workforce – as part of running a sustainable, future-ready business. Artificial intelligence may be the breakout technology of our time, but business leaders are more occupied with trying to understand just how this technology can usher in a new era of their business, how it is expected to upend existing business value chains, unlock new revenue streams, and deliver improved efficiencies in cost outlays. In this article, let us try to answer these questions.
AI is Disrupting Existing Value Chains
Ever since Michael Porter first expounded on the concept in his best-selling book, Competitive Advantage: Creating and Sustaining Superior Performance, the concept of the value chain has gained great currency in the minds of business leaders globally. The idea behind the value chain was to map out the inter linkages between the primary activities that work together to conceptualize and bring a product / service to market (R&D, manufacturing, supply chain, marketing, etc.), as well as the role played by support activities performed by other internal functions (finance, HR, IT etc.). Strategy leaders globally leverage the concept of value chains to improve business planning, identify new possibilities for improving business efficiency and exploit potential areas for new growth.
Now with AI entering the fray, we might see new vistas in the existing value chains of multinational corporations. For instance:
- Manufacturing is becoming heavily augmented by artificial intelligence and robotics. We are seeing these technologies getting a stronger foothold across processes requiring increasing sophistication. Business leaders need to now seriously consider workforce planning for a labor force that consists both human and artificial workers at their manufacturing units. Due attention should also be paid in ensuring that both coexist in a symbiotic and complementary manner.
- Logistics and Delivery are two other areas where we are seeing a steady growth in the use of artificial intelligence. Demand planning and fulfilment through AI has already reached a high level of sophistication at most retailers. Now Amazon – which handles some of the largest and most complex logistics networks in the world – is in advanced stages of bringing in unmanned aerial vehicles (drones) for deliveries through their Amazon Prime Air program. Business leaders expect outcomes to range from increased customer satisfaction (through faster deliveries) and reduction in costs for the delivery process.
- Marketing and Sales are constantly on the forefront for some of the most exciting inventions in AI. One of the most recent and evolved applications of AI is Reactful. A tool developed for eCommerce properties, Reactful helps drive better customer conversions by analyzing the clickstream and digital footprints of people who are on web properties and persuades them into making a purchase. Business leaders need to explore new ideas such as this that can help drive meaningful engagement and top line growth through these new AI-powered tools.
AI is Enabling New Revenue Streams
The second way business leaders are thinking strategically around AI is for its potential to unlock new sources of revenue. Earlier, functions such as internal IT were seen as a cost center. In today’s world, due to the cost and competitive pressure, areas of the business which were traditionally considered to be cost centers are require to reinvent themselves into revenue and profit centers. The expectation from AI is no different. There is a need to justify the investments made in this technology – and find a way for it to unlock new streams of revenue in traditional organizations. Here are two key ways in which business leaders can monetize AI:
- Indirect Monetization is one of the forms of leveraging AI to unlock new revenue streams. It involves embedding AI into traditional business processes with a focus on driving increased revenue. We hear of multiple companies from Amazon to Google that use AI-powered recommendation engines to drive incremental revenue through intelligent recommendations and smarter bundling. The action item for business leaders is to engage stakeholders across the enterprise to identify areas where AI can be deeply ingrained within tech properties to drive incremental revenue.
- Direct Monetization involves directly adding AI as a feature to existing offerings. Examples abound in this area – from Salesforce bringing in Einstein into their platform as an AI-centric service to cloud infrastructure providers such as Amazon and Microsoft adding AI capabilities into their cloud offerings. Business leaders should brainstorm about how AI augments their core value proposition and how it can be added into their existing product stack.
AI is Bringing Improved Efficiencies
The third critical intervention for a new AI-enabled enterprise is bringing to the fore a more cost-effective business. Numerous topical and early-stage experiments with AI have brought interesting success for reducing the total cost of doing business. Now is the time to create a strategic roadmap for these efficiency-led interventions and quantitatively measure their impact to business. Some food for thought for business leaders include:
- Supply Chain Optimization is an area that is ripe for AI-led disruption. With increasing varieties of products and categories and new virtual retailers arriving on the scene, there is a need for companies to reduce their outlay on the network that procures and delivers goods to consumers. One example of AI augmenting the supply chain function comes from Evertracker – a Hamburg-based startup. By leveraging IOT sensors and AI, they help their customers identify weaknesses such as delays and possible shortages early, basing their analysis on internal and external data. Business leaders should scout for solutions such as these that rely on data to identify possible tweaks in the supply chain network that can unlock savings for their enterprises.
- Human Resources is another area where AI-centric solutions can be extremely valuable to drive down the turnaround time for talent acquisition. One such solution is developed by Recualizer – which reduces the need for HR staff to scan through each job application individually. With this tool, talent acquisition teams need to first determine the framework conditions for a job on offer, while leaving the creation of assessment tasks to the artificial intelligence system. The system then communicates the evaluation results and recommends the most suitable candidates for further interview rounds. Business leaders should identify such game-changing solutions that can make their recruitment much more streamlined – especially if they receive a high number of applications.
- The Customer Experience arena also throws up very exciting AI use cases. We have now gone well beyond just bots answering frequently asked questions. Today, AI-enabled systems can also provide personalized guidance to customers that can help organizations level-up on their customer experience, while maintaining a lower cost of delivering that experience. Booking.com is a case in point. Their chatbot helps customers identify interesting activities and events that they can avail of at their travel destinations. Business leaders should explore such applications that provide the double advantage of improving customer experience, while maintaining strong bottom-line performance.
The possibilities for the new AI-enabled enterprises are as exciting as they are varied. The ideas shared are by no means exhaustive, but hopefully seed in interesting ideas for powering improved business performance. Strategy leaders and business heads need to consider how their AI-led businesses can help disrupt their existing value chains for the better, and unlock new ideas for improving bottom-line and top-line performance. This will usher in a new era of the enterprise, enabled by AI.
(AIQRATE, A bespoke global AI advisory and consulting firm. A first in its genre, AIQRATE provides strategic AI advisory services and consulting offerings across multiple business segments to enable clients on their AI powered transformation & innovation journey and accentuate their decision making and business performance.
AIQRATE works closely with Boards, CXOs and Senior leaders advising them on navigating their Analytics to AI journey with the art of possible or making them jump start to AI progression with AI@scale approach followed by consulting them on embedding AI as core to business strategy within business functions and augmenting the decision-making process with AI. We have proven bespoke AI advisory services to enable CXO’s and Senior Leaders to curate & design building blocks of AI strategy, embed AI@scale interventions and create AI powered organizations. AIQRATE’s path breaking 50+ AI consulting frameworks, assessments, primers, toolkits and playbooks enable Indian & global enterprises, GCCs, Startups, SMBs, VC/PE firms, and Academic Institutions enhance business performance and accelerate decision making.
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Fluid supply chain transformation led by AI : A strategic PoV during COVID-19
In midst of this COVID situation across the globe, exponential technologies and an AI led processes around the value chain of supply chain will unleash new scenarios for global enterprises. Robots already stand side-by-side with their human counterparts on several manufacturing floors, adding efficiency, capacity (robots don’t need to sleep!) and dependability. Add in drones and self-driving vehicles ; all these technological advancements are compelling enterprises to reimagine their supply chain.
Supply chains, although automated to a degree, still face challenges brought about by the amount of slow, manual tasks required, and the daily management of a complex web of interdependent parts. The next generation of process efficiency gains and visibility could be on your doorstep with artificial intelligence in supply chain management, if only you’d let the robots automatically open it for you.
Intelligent Automation: Intelligent automation of the end-to-end supply chain, enabling the management of all tasks and sections in tandem allows you to spend less time on low value, high frequency activities like managing day-to-day processes, and provides more time to work on high value, exception-based requirements, which ultimately drives value for the entire business.
Analysts estimates businesses could automate up to 45% of current work, saving $2 trillion in annual wages. “In addition to the cost and efficiency advantages, Intelligent automation can take a business to the next level of productivity optimization,” . Those ‘lights out’ factories and warehouses are becoming closer to a reality.
Four key elements need to be in place for you to take full advantage of intelligent automation in your supply chain:
- robots for picking orders and moving them through the facility;
- sensors to ensure product quality and stock;
- cognitive learning systems;
- and, artificial intelligence to turn processes into algorithms to guide the entire operation.
In addition, you’ll need strong collaboration internally and among suppliers and customers to tie all management systems back to order management and enterprise resource planning platforms.
Artificial Intelligence In Supply Chain : Strategic coverage areas
AI is changing the traditional way in which companies are operating. Siemens in its “lights out” manufacturing plant, has automated some of its production lines to a point where they are run unsupervised for several weeks.
Siemens is also taking a step towards a larger goal of creating Industrie 4.0 or a fully self-organizing factory which will automate the entire supply chain. Here, the demand and order information would automatically get converted into work orders and be incorporated into the production process. This would streamline manufacturing of highly customized products.
Artificial Intelligence In Supplier Management And Customer Service: Organizations are also increasingly leveraging AI for supplier management and customer management. IPsoft’s AI platform, Amelia automates work knowledge and is able to speak to the customers in more than 20 languages. A global oil and gas company has trained Amelia to help provide prompt and more efficient ways of answering invoicing queries from its suppliers. A large US-based media services organization taught Amelia how to support first line agents in order to raise the bar for customer service.
Artificial Intelligence In Logistics & Warehousing : Logistics function will undergo a fundamental change as artificial intelligence gets deployed to handle domestic and international movement of goods. DHL has stated that its use of autonomous fork lifts is “reaching a level of maturity” in warehouse operations. The next step would be driver less autonomous vehicles undertaking goods delivery operations.
Artificial Intelligence In Procurement :AI is helping drive cost reduction and compliance agenda through procurement by generating real time visibility of the spend data. The spend data is automatically classified by AI software and is checked for compliance and any exceptions in real time. Singapore government is carrying out trials of using artificial intelligence to identify and prevent cases of procurement fraud. The AI algorithm analyzes HR and finance data, procurement requests, tender approvals, workflows, non-financial data like government employee’s family details and vendor employee to identify potentially corrupt or negligent practices. AI will also take up basic procurement activities in the near future thereby helping improve the procurement productivity.
Artificial Intelligence in new product development :AI has totally overhauled the new product development process.by reducing the time to market for new products. Instead of developing physical prototypes and testing the same, innovators are now creating 3D digital models of the product. AI facilitates interaction of the product developers in the digital space by recognizing the gestures and position of hand. For example, the act of switching on a button of a digital prototype can be accomplished by a gesture.
AI In Demand Planning And Forecasting: Getting the demand planning right is a pain point for many companies. A leading health food company leveraged analytics with machine learning capabilities to analyze their demand variations and trends during promotions. The outcome of this exercise was a reliable, detailed model highlighting expected results of the trade promotion for the sales and marketing department. Gains included a rapid 20 percent reduction in forecast error and a 30 percent reduction in lost sales.
AI in Smart Logistics :The impact of data-driven and autonomous supply chains provides an opportunity for previously unimaginable levels of optimization in manufacturing, logistics, warehousing and last mile delivery that could become a reality in less than half a decade despite high set-up costs deterring early adoption in logistics. Changing consumer behavior and the desire for personalization are behind two other top trends Batch Size One and On-demand Delivery: Set to have a big impact on logistics, on-demand delivery will enable consumers to have their purchases delivered where and when they need them by using flexible courier services.
A study by MHI and Deloitte found more than half (51%) of supply chain and logistics professionals believe robotics and automation will provide a competitive advantage. That’s up from 39% last year. While only 35% of the respondents said they’ve already adopted robotics, 74% plan to do so within the next 10 years. And that’s likely in part to keep up with key players like Amazon, who have been leading the robotics charge for the past few years.
Execution led scenario : These examples showcase that in today’s uncertain times, AI embedded supply chains offer a competitive advantage. AI armed with intelligence can analyze massive amounts of data generated by the supply chains and help organizations move to a more proactive form of supply chain management. Thus, in this AI first theme, where the mantra is “evolve or be disrupted”, companies are leveraging AI to reinvent themselves and scale their businesses quickly. AI is becoming a key enabler of the changes that businesses need to make and is helping them manage complexity of business posed by this pandemic.
Key Strategic Imperatives for GCCs to drive AI Center of Excellence : The new model
Global Capability Centers(GCC’s) are at an inflection point as the pace at which AI is changing every aspect is exponential and at high velocity. The rapid transformation and innovation of GCC’s today is driven largely by ability for them to position AI strategic imperative for their parent organizations. AI is seen to the Trojan horse to catapult GCC’s to the next level on innovation & transformation. In recent times; GCC story is in a changing era of value and transformative arbitrage. Most of the GCCs are aiming towards deploying suite of AI led strategies to position themselves up as the model template of AI center of Excellence . It is widely predicted that AI will disrupt and transform capability centers in the coming decades. How are Global Capability Centers in India looking at positioning themselves as model template for developing AI center of competence? How have the strategies of GCCs transformed with reference to parent organization? whilst delivering tangible business outcomes , innovation & transformation for parent organizations?
Strategic imperatives for GCC’s to consider to move incrementally in the value chain & become premier AI center of excellence
Artificial Intelligence has become the main focus areas for GCCs in India. The increasing digital penetration in GCCs across business verticals has made it imperative to focus on AI. Hence, GCCs are upping their innovation agenda by building bespoke AI CoEs. Accelerated AI adoption has transcended industry verticals, with organizations exploring different use cases and application areas. GCCs in India are strategically leveraging one of the following approaches to drive the AI penetration ahead –
- Federated Approach: Different teams within GCCs drive AI initiatives
- Centralized Approach: Focus is to build a central team with top talent and niche skills that would cater to the parent organization requirements
- Partner ecosystem : Paves a new channel for GCCs by partnering with research institutes , start-ups , accelerators
- Hybrid Approach: A mix of any two or more above mentioned approaches, and can be leveraged according to GCC’s needs and constraints.
Ecosystem creation : Startups /research institutes/Accelerators
One of the crucial ways that GCCs can boost their innovation agenda is by collaborating with start-ups, research institutes , accelerators. Hence, GCCs are employing a variety of strategies to build the ecosystem. These collaborations are a combination of build, buy, and partner models:
- Platform Evangelization: GCCs offer access to their AI platforms to start-ups
- License or Vendor Agreement: GCCs and start-ups enter into a license agreement to create solutions
- Co-innovate: Start-ups and GCCs collaborate to co-create new solutions & capabilities
- Acqui-hire: GCCs acquire start-ups for the talent & capability
- Research centers : GCCs collaborate with academic institutes for joint IP creation , open research , customized programs
- Joint Accelerator program : GCCs & Accelerators build joint program for customized startups cohort
To drive these ecosystem creation models, GCCs can leverage different approaches. Further, successful collaboration programs have a high degree of customization, with clearly defined objectives and talent allocation to drive tangible and impact driven business outcomes.
AI Center of Competence/ Capability
GCCs are increasingly shifting to competency , capability creation models to reduce time-to-market. In this model, the AI Center of Competence teams are aligned to capability lines of businesses where AI center of competence are responsible for creating AI capabilities , roadmaps and new value offerings, in collaboration with parent organization’s business teams. This alignment and specific roles have clear visibility of the business user requirement. Further, capability creation combined with parent organization’s alignment helps in tangible value outcomes. In several cases, AI teams are building new range of innovation around AI based capabilities and solutions to showcase ensuing GCC as model template for innovation & transformation . GCCs need to conceptualize a bespoke strategy for building and sustaining AI Center of Competence and keep it up on the value chain with mature and measured transformation & innovation led matrices.
Talent Mapping Strategy
With the evolution of analytics ,data sciences to AI , the lines between different skills are blurring. GCCs are witnessing a convergence of skills required across verticals. The strategic shift of GCCs towards AI center of capability model has led to the creation of AI , data engineering & design roles. To build skills in AI & data engineering, GCCs are adopting a hybrid approach. The skill development roadmap for AI is a combination of build and buy strategies. The decision to acquire talent from the ecosystem or internally build capabilities is a function of three parameters –Maturity of GCC ’s existing AI capabilities in the desired or adjacent areas ,Tactical nature of skill requirement & Availability and accessibility of talent in the ecosystem. There’s always a heavy Inclination towards building skills in-house within GCCs and a majority of GCCs have stressed upon that the bulk of the future deployment in AI areas will be through in-house skill-building and reskilling initiatives. However, talent mapping strategy for building AI capability is a measured approach else can result in being a Achilles heel for GCC and HR leaders.
GCCs in India are uniquely positioned to drive the next wave of growth with building high impact AI center of competence , there are slew of innovative & transformative models that they are working upon to up the ante and trigger new customer experience , products & services and unleash business transformation for the parent organizations. This will not only set the existing GCCs on the path to cutting-edge innovation but also pave the way for other global organizations contemplating global center setup in India.AI is becoming front runner to drive innovation & transformation for GCCs.
Experience the Algorithm Economy : Accentuating strategic value for the enterprises
Algorithms will not only drive scores of business processes, but also build other self-intuitive algorithms, much as robots can build other robots. And rather than using apps, future users’ lives will revolve personalized algorithms to drive individual choices and behaviors .
Enterprises will license, trade, sell and even give away non-lynch pin algorithms and single-function software snippets that provide new opportunities for innovation by other enterprises. Enterprises will also partner with cloud-based, automated suppliers with the industry expertise to advice on ways to avoid future risk and adapt to technology trends.
Imaginative thinking ! but it’s no surprise that future value will come from increased density of interactions, relationships and sharing between people, businesses and things ̶ or what I call “ Algorithm Economy “ .The greater the maturity of algorithms , the greater potential value you can reap. We’ve seen interconnection coming of age for a while now and have invested heavily in a platform to empower enterprises with fast, direct and secure interconnections with business partners and network and cloud service providers.
Redefining Business Architecture with Algorithms
The term “algorithm economy” is relatively new, but the practical use of algorithms is already well established in many industries. In my opinion , CXOs must begin designing their algorithmic business models, both to capitalize on their potential for business differentiation, and to mitigate the possible risks involved.
Established businesses need to adopt a “bi modal strategy” and build what I called an algorithmic platform, completely separate from legacy systems, that harnesses repository of algorithms, interconnections, the cloud and the Internet of Things (IoT) to innovate, share value, increase revenues and manage risk.
New platforms based on this bimodal model should be far simpler, more cloud-based and more flexible than in the past, with the ability to add and remove capabilities “like Velcro” to support new short- and long-term projects. At the same time, IT should start divesting itself of older systems and functions that are outliving their usefulness or could be better done by other methods. The significant development and growth of smart machines is a major factor in the way algorithms have emerged from the shadows, and become more easily accessible to every organization. We can already see their impact in today’s world, but there is much work ahead to harness the opportunities and manage the challenges of algorithmic business.
CXOs should examine how algorithms and intelligent machines are already used by competitors and even other enterprises to determine if there is relevance to their own needs. The retail sector has long been at the leading edge of using smart algorithms to improve business outcomes. Today, many retail analysts believe that the algorithms that automate pricing and merchandising may soon become the most valuable asset that a retailer can possess. In HR function, algorithms are already transforming talent acquisition as they are able to rapidly evaluate the suitability of candidates for specific roles, but the same technology could easily be applied within an enterprise to allocate workloads to the right talent. In healthcare, the open availability of advanced clinical algorithms is transforming the efficiency of healthcare delivery organizations and their ability to deliver care. The practice of sharing and co-developing algorithms between enterprises with mutual interests could be relevant to most enterprises.
The Challenges of Algorithm Economy
The advances and benefits of algorithm economy will come hand in hand with obstacles to navigate. Whether the problems are anticipated or unexpected, as quantum computing becomes more pervasive, the implications have the potential to make or break organizations. For example, an extreme point of view is that any beneficial effects of algorithms on humanity may be nullified by algorithmically driven systems that are antithetical to human interests. Or, while an algorithmic business model may be deployed with good intentions, it could be manipulated by malicious humans to achieve undesirable outcomes. Undesirable, at least, from the point of the view of the person or organization that owns or controls the algorithm. Algorithms rely on the data they are fed, and their decisions are only as good as the data they are based on. Moreover, tricky ethical problems that do not necessarily have a “correct” answer will be inevitable, as a greater complexity of decision making is left in the hands of automated systems.
The scale of change that is made possible by smart machines and algorithm economy warrants considerable planning and testing. Enterprises that fail to prepare risk being left behind or facing unexpected outcomes with negative implications.
The Transformation required in Algorithm Economy
Making sense of all the data about how customers behave, and what connected things tell an organization, will require algorithms to define business processes and create a differentiated customer experience. Algorithms will evaluate suppliers, define how our cars operate, and even determine the right mix of drugs for a patient. In the purely digital world, agents will act independently based on our algorithms, in the cloud. In the 2020s, we’ll move away from using apps to rely on virtual assistants – basically, algorithms in the cloud – to guide us through our daily tasks. People will trust personal algorithms that thinks and acts for them. Take this to another level and the algorithms themselves will eventually become smart by learning from experience and producing results their creators never expected.
The Final Frontier
Therefore, we have to get the architecture of algorithms robust and steady to derive meaningful objectives. In essence, algorithms spot the business moments, meaningful connections, and predict ill behaviors and threats. CXOs need to be the strategic voice on the use of information, to build the right set of intelligent insights. Experience the Algorithm Economy and the ensuing strategic value for your enterprise . Are you geared up ?
Lock in winning AI deals : Strategic recommendations for enterprises & GCCs
Artificial Intelligence is unleashing exciting growth opportunities for the enterprises & GCCs , at the same time , they also present challenges and complexities when sourcing, negotiating and enabling the AI deals . The hype surrounding this rapidly evolving space can make it seem as if AI providers hold the most power at the negotiation table. After all, the market is ripe with narratives from analysts stating that enterprises and GCCs failing to embrace and implement AI swiftly run the risk of losing their competitiveness. With pragmatic approach and acknowledgement of concerns and potential risks, it is possible to negotiate mutually beneficial contracts that are flexible, agile and most importantly, scalable. The following strategic choices will help you lock in winning AI deals :
Understand AI readiness & roadmap and use cases
It can be difficult to predict exactly where and how AI can be used in the future as it is constantly being developed, but creating a readiness roadmap and identifying your reckoner of potential use cases is a must. Enterprise and GCC readiness and roadmap will help guide your sourcing efforts for enterprises and GCCs , so you can find the provider best suited to your needs and able to scale with your business use cases. You must also clearly frame your targeted objectives both in your discussions with vendors as well as in the contract. This includes not only a stated performance objective for the AI , but also a definition of what would constitute failure and the legal consequences thereof.
Understand your service provider’s roadmap and ability to provide AI evolution to steady state
Once you begin discussions with AI vendors & providers, be sure to ask questions about how evolved their capabilities and offerings are and the complexity of data sets that were used to train their system along with the implementation use cases . These discussions can uncover potential business and security risks and help shape the questions the procurement and legal teams should address in the sourcing process. Understanding the service provider’s roadmap will also help you decide whether they will be able to grow and scale with you. Gaining insight into the service provider’s growth plans can uncover how they will benefit from your business and where they stand against their competitors. The cutthroat competition among AI rivals means that early adopter enterprises and GCCs that want to pilot or deploy AI@scale will see more capabilities available at ever-lower prices over time. Always mote that the AI service providers are benefiting significantly from the use cases you bring forward for trial as well as the vast amounts of data being processed in their platforms. These points should be leveraged to negotiate a better deal.
Identify business risk cycles & inherent bias
As with any implementation, it is important to assess the various risks involved. As technologies become increasingly interconnected, entry points for potential data breaches and risk of potential compliance claims from indirect use also increase. What security measures are in place to protect your data and prevent breaches? How will indirect use be measured and enforced from a compliance standpoint? Another risk AI is subject to is unintentional bias from developers and the data being used to train the technology. Unlike traditional systems built on specific logic rules, AI systems deal with statistical truths rather than literal truths. This can make it extremely difficult to prove with complete certainty that the system will work in all cases as expected.
Develop a sourcing and negotiation plan
Using what you gained in the first three steps, develop a sourcing and negotiation plan that focuses on transparency and clearly defined accountability. You should seek to build an agreement that aligns both your enterprise’s and service provider’s roadmaps and addresses data ownership and overall business and security related risks. For the development of AI , the transparency of the algorithm used for AI purposes is essential so that unintended bias can be addressed. Moreover, it is appropriate that these systems are subjected to extensive testing based on appropriate data sets as such systems need to be “trained” to gain equivalence to human decision making. Gaining upfront and ongoing visibility into how the systems will be trained and tested will help you hold the AI provider accountable for potential mishaps resulting from their own erroneous data and help ensure the technology is working as planned.
Develop a deep understanding of your data, IP, commercial aspects
Another major issue with AI is the intellectual property of the data integrated and generated by an AI product. For an artificial intelligence system to become effective, enterprises would likely have to supply an enormous quantity of data and invest considerable human and financial resources to guide its learning. Does the service provider of the artificial intelligence system acquire any rights to such data? Can it use what its artificial intelligence system learned in one company’s use case to benefit its other customers? In extreme cases, this could mean that the experience acquired by a system in one company could benefit its competitors. If AI is powering your business and product, or if you start to sell a product using AI insights, what commercial protections should you have in place?
In the end , do realize the enormous value of your data, participate in AI readiness, maturity workshops and immersion sessions and identification of new and practical AI use cases. All of this is hugely beneficial to the service provider’s success as well and will enable you to strategically source and win the right AI deal.
(AIQRATE advisory & consulting is a bespoke global AI advisory & consulting firm and provides strategic advisory services to boards, CXOs, senior leaders to curate , design building blocks of AI strategy , embed AI@scale interventions & create AI powered enterprises . Visit www.aiqrate.ai , reach out to us at firstname.lastname@example.org )
Embark on AI@scale journey : Strategic Interventions for CXOs
AI is invoking shifts in the business value chains of enterprises. And it is redefining what it takes for enterprises to achieve competitive advantage. Yet, even as several enterprises have begun applying AI engagements with impressive results, few have developed full-scale AI capabilities that are systemic and enterprise wide.
The power of AI is changing business as we know it. AIQRATE AI@scale advisory services allow you to transform your operating model, so you can move beyond isolated AI use cases toward an enterprise wide program and realize the full value potential.
We have realized that that unleashing the true power of AI requires scaling it across the entire business functions and value chain and its calls for “transforming the business “.
An AI@scale transformation should occur through a series of top-down and bottom-up actions to create alignment, buy-in, and follow-through. This ensures the successful industrialization of AI across enterprises and their value chains.
The following strategic interventions are to be initiated to build AI@scale transformation program:
- AI Maturity Assessment: This strategic top-down establishes the overall context of the transformation and helps prevent the enterprises from pursuing isolated AI pilots. The maturity assessment is typically based on a blend of AI masterclass, surveys and assessments
- Strategic AI Initiatives and business value chains: This bottom-up step provides a baseline of current AI initiatives. It should include goals, business cases, accountabilities, work streams, and milestones in addition to an analysis of data management, algorithms, performance metrics. A review of the current business value chain and proposed transformational structure should also be conducted at this stage.
- Strategic mapping & gap Analysis: The next top-down step prioritizes AI initiatives, focusing on easy wins and low hanging fruits. This step also identifies the required changes to the operating business model.
- AI@scale transformation program: This critical strategic step consists of both the transformation roadmap, including the order of initiatives to be rolled out, and the creation of a planned program management approach to oversee the transformation.
- AI@scale implementation: This covers implementation, detailing the work streams, responsibilities, targets, milestones, talent and partner mapping.
By systematically moving through these steps, the implementation of AI@scale will proceed with much greater speed and certainty. Enterprises must be aware that AI@scale requires deep transformative changes and need strategic and operational buy ins from management for long term business gains and impact .
AIQRATE works closely with global & Indian enterprises , GCC’s , VC/PE firms to provide end-to-end AI@scale advisory services