Business Technology Roundtable

The digital business sector is at a pivotal moment, particularly with Generative AI (GenAI) emerging as the most defining value-creation trend of 2024 and beyond. Are you prepared?Bain & Company's latest Technology Report provides a comprehensive look at how AI reshapes the industry landscape, creates new opportunities, and delivers tangible results for enterprises across sectors.As an independent industry analyst and consultant, I find the report's insights on enterprise opportunities with GenAI applications particularly enlightening and compelling.This transformational technology is driving meaningful and substantive business outcomes. It now has the potential to revolutionize how companies operate and compete globally.The Strategic GenAI ImperativeGenerative AI has moved firmly into the mainstream, with cloud service providers, enterprises, and technology vendors increasing their GenAI investments to unprecedented levels. However, as with any transformative business technology, skeptics are questioning the return on investment for their potential new project. The key insight from Bain's report is that AI differs from previous technological disruptions in a crucial way: deploying the technology alone generates little value.To truly capitalize on AI's potential, companies must fundamentally redesign their business processes and manage large-scale organizational change. This is essential in project planning.Promising Early Results from Strategic InitiativesDespite the known challenges, the early upside opportunity proof points from Bain's client work are highly encouraging.The report indicates that Generative AI initiatives could be worth up to 20 percent of EBITDA for companies that successfully implement and scale the technology.This is a significant ROI target that should capture the attention of every C-suite executive.Some of the most insightful statistics from the report include:20-35 percent time reduction for manual responses in customer care.30-50 percent less time spent on content creation in sales and marketing.15 percent time reduction in coding-related activities for software development.20-50 percent task automation for document comparison in back office functions.These results demonstrate the wide-ranging impact of GenAI use cases across various business functions. Clearly, the technology applications are not limited to a single department or use case - it has the potential to transform entire organizations.Key Trends and Market Opportunities for GenAILooking ahead, several trends are likely to shape this emerging landscape:1. Customization and Specialization: As the technology matures, we'll see more industry and function-specific AI models tailored to particular business needs.2. Integration with Existing Systems: Successful AI implementations will seamlessly integrate with companies' existing tech stacks and workflows.3. Focus on ROI: As initial excitement gives way to pragmatism, enterprises will demand clear, measurable returns on their AI investments.4. Ethical AI and Governance: With increased adoption will come greater scrutiny. Companies must prioritize responsible AI development and usage.5. AI-Powered Innovation: Generative AI will not just optimize existing processes but enable entirely new products, services, and business models.Industry Digital Transformation Outlook The market opportunities are immense. Bain's report suggests that AI could create a trillion-dollar opportunity across industries.Sectors ripe for disruption include healthcare, financial services, retail, and manufacturing.Moreover, business leaders who choose to move quickly and strategically to adopt GenAI tools will gain significant competitive advantages. The window of opportunity is open now.A Call to Action for Enterprise CEOsGiven the transformative potential of Generative AI use cases across most business functions, CEOs cannot afford to sit on the sidelines. Here are key actions leaders should take:Develop an AI Strategy: Create a comprehensive plan for how AI will drive value in your organization. This should align with your overall business strategy.Invest in Capabilities: Build or acquire the necessary technical skills and infrastructure to support AI initiatives.Start with High-Impact Use Cases: Identify and prioritize areas where AI can deliver quick wins and significant ROI.Foster a Culture of Innovation: Encourage experimentation and learning throughout the organization.Address Ethical Concerns: Proactively develop guidelines and governance structures for responsible AI use.Prepare for Organizational Change: Recognize that successful AI adoption requires rethinking processes and potentially restructuring teams.Partner Strategically: Consider collaborations with AI vendors, startups, or management and technology consultancies to accelerate your AI journey.The message is clear: Generative AI is a fundamental shift that will redefine competitive advantage in the coming years. CEOs who embrace this change and position their organizations to leverage GenAI's potential will be the leaders of digital transformation.The time to act is now. As Bain's report demonstrates, the benefits of Generative AI tools are already being realized by forward-thinking companies. Those who delay risk falling behind in an increasingly AI-driven world.By taking bold and decisive action today, forward-thinking enterprise leaders can ensure their organizations are not just prepared for the digital business future but actively shaping it.Savvy project leaders create a comprehensive business case story that outlines all the key components of a path toward successful implementation and GenAI use case adoption.More...

Business technology investment continues to evolve. During the last decade, I've had a front-row seat to the meteoric global rise of Artificial Intelligence (AI) and its transformative impact across industries.The AI Consulting professional services market has emerged as a critical enabler of this transformation revolution, helping organizations navigate the complexities of AI adoption and implementation.The global AI consulting market is experiencing ongoing growth, with forecasts indicating it will reach $72.5 billion by 2025. This remarkable expansion is fueled by a compound annual growth rate (CAGR) of 40.3 percent from 2020 to 2027, highlighting the insatiable appetite for broad AI expertise and proven experience.The AI Consulting Market AnalysisOne of the most striking statistics is that over 80 percent of AI consulting firms report increased demand for their professional services in the past year. This surge in demand is not limited to a single sector but spans across various industries.The healthcare and life sciences sector, for instance, accounts for a quarter of all AI consulting projects globally, underscoring the transformative potential of AI in revolutionizing patient care and medical research.The financial services industry is another major player in the AI consulting arena, investing approximately $7.4 billion annually in AI consulting services. This substantial investment reflects the sector's recognition of AI's potential to enhance risk management, automate processes, and deliver personalized financial solutions.Interestingly, the adoption of AI consulting services in the retail sector has increased by 38 percent in the past year. This surge can be attributed to retailers' growing interest in leveraging AI for inventory management, demand forecasting, and personalized customer experiences.Despite the enthusiasm surrounding AI, it's crucial to note that the path to successful implementation is not without challenges. Only 30 percent of AI consulting projects are considered completely successful by clients. This statistic highlights the complexity of AI integration and the need for expert guidance to navigate the pitfalls of implementation.On a more positive note, AI consulting firms report an average of 35 percent improvement in operational efficiency for their clients. This significant boost in productivity demonstrates the tangible benefits that well-executed AI initiatives can deliver to organizations.Several key trends are poised to shape the AI consulting market:As the AI landscape becomes more complex, we're likely to see consulting firms specializing in specific AI applications or industry verticals. For instance, firms focusing on natural language processing (NLP) have already witnessed a 30 percent increase in projects.With growing concerns about AI bias and ethical implications, consulting firms specializing in AI ethics and bias mitigation have seen a 55 percent increase in demand. This trend is expected to continue as organizations prioritize responsible AI development and deployment.The convergence of AI with technologies like the Internet of Things (IoT), blockchain, and edge computing will create new opportunities for consulting firms to offer integrated solutions.As AI systems become more complex, there is a growing need for interpretable and explainable AI. Consulting projects focused on AI model interpretation have increased by 37 percent in the past two years.With AI consulting projects focused on automation increasing by 25 percent since 2019, we can expect continued growth in this area as organizations seek to streamline operations and enhance productivity.The AI consulting market presents tremendous growth opportunities for independent boutique firms that can effectively navigate the rapidly evolving landscape. The Asia-Pacific region, in particular, is poised for explosive growth, with the AI consulting market expected to expand by 42 percent by 2025.This forecast growth presents a significant opportunity for AI consulting firms to expand their presence in emerging markets.Moreover, as AI continues to permeate various industry sectors, we can expect to see increased demand for industry-specific AI solutions. The automotive sector, for instance, is projected to see 32 percent growth in AI consulting in 2024, while the energy sector is expected to grow by 39 percent by 2025.Outlook for AI Consulting Investment GrowthIn summary, the AI consulting industry stands at the forefront of a significant business technology investment trend, poised for continued growth and innovation. As large enterprise executives increasingly recognize the transformative potential of AI, the demand for actionable information and expert guidance will intensify.However, success in this field will require more than just technical expertise. The ability to deliver tangible business value will be a crucial differentiator for AI consulting firms in the years to come.Looking to the future, one thing is certain: advisory consulting will play a pivotal role in shaping enterprise use cases for Generative AI tool applications.More...

Is your leadership team ready to move beyond the consideration phase and harness the transformative power of Generative AI (GenAI), or are you trapped in analysis paralysis?Deloitte's latest quarterly report on "The State of Generative AI in the Enterprise" provides a comprehensive look at how organizations are navigating the GenAI adoption call to action. The Q3 2024 survey of 2,770 leaders across 14 countries offers valuable insights into the current state of GenAI implementation, challenges, and future outlook. It's insightful reading.Building on Initial GenAI SuccessOrganizations are seeing early value from their strategic GenAI initiatives, with 67 percent increasing investments due to strong business outcome results.While improved efficiency, productivity, and cost reduction remain top priorities (cited by 42 percent as the most important benefit), a majority (58 percent) report diverse benefits such as increased innovation, improved products, and enhanced customer relationships.To drive the most value, 22 percent of respondents believe deeply embedding GenAI into business functions and processes is crucial. This highlights the importance of integrating this technology into everyday tasks rather than treating it as a standalone tool.Striving for Cross-Organization GenAI ScaleDespite promising pilots, scaling GenAI remains a challenge. A significant 68 percent of organizations have moved 30 percent or fewer of their GenAI experiments into production. This gap between experimentation and full-scale deployment underscores the complexities involved in large-scale GenAI implementation within the enterprise.Data Foundations: A Critical GenAI EnablerStrategic business data management emerges as a foundational element of preparation for successful GenAI adoption. This is consistent across industries.Encouragingly, 75 percent of organizations have increased investments in data lifecycle management to support their GenAI strategy. Top actions include enhancing data security (54 percent) and improving data quality (48 percent).However, data-related issues are limiting options for 55 percent of organizations, causing them to avoid certain GenAI use cases. Concerns include using sensitive data in models (58 percent), managing data privacy (58 percent), and ensuring data security (57 percent).Mitigating Risks and Preparing for GenAI RegulationRisk management and governance pose significant challenges for survey respondents, with only 23 percent of organizations feeling highly prepared.Regulatory compliance, risk management, and lack of governance models are among the top barriers to GenAI development and deployment.To address these challenges, leaders are taking various actions:51 percent are establishing governance frameworks for GenAI use.49 percent are monitoring GenAI regulatory requirements.43 percent are using internal audits and testing GenAI tools.Measuring and Communicating GenAI Business ValueAs GenAI initiatives move beyond the pilot stage, demonstrating tangible business value becomes crucial. However, 41 percent of organizations struggle to define and measure the exact impacts of their GenAI efforts.Only 48 percent use specific return-on-investment KPIs to evaluate GenAI performance and just 38 percent track changes in their employee productivity.More concerning, and an indication that ROI assessment is rare, is that only 16 percent produce regular reports for the CFO about the value created by GenAI.As the GenAI tools become more integral to business operations, we can expect increased focus on traditional financial metrics and demand for more tangible, measurable results.Vertical Industry Perspectives on GenAI ValueHere's how different market sectors are approaching GenAI:Technology, Media & Telecom leads in GenAI expertise and investments.Financial Services show scaling progress but lags in risk and governance.Life Sciences and Health Care faces significant data security challenges.Government & Public Services needs to catch up, with slower adoption.Next Steps for GenAI-Savvy Senior ExecutivesThe Deloitte research underscores a transition for leaders that move from GenAI's potential to measurable performance. To capitalize on these new tools, senior executives should:1. Look beyond efficiency gains: While productivity improvements are valuable, explore GenAI's potential for innovation, product enhancement, and revenue growth. 2. Prioritize knowledge management foundations: Address data quality, security, and governance issues to unlock GenAI's full potential. 3. Invest in risk management and governance: Develop robust frameworks to navigate regulatory challenges and build trust in GenAI applications. 4. Improve value measurement: Implement comprehensive metrics to demonstrate GenAI's impact on both financial and non-financial outcomes. 5. Focus on application scaling: Move beyond initial pilots to embed GenAI tools deeply into business processes for maximum impact. 6. Cultivate adaptability: Build organizational flexibility and change management capabilities to quickly integrate new GenAI models and use cases.The Competitive Landscape for Strategic InitiativesThe journey from GenAI's promise to performance is complex and multifaceted. Organizations that successfully navigate this transition will gain significant competitive advantages.However, the path forward requires careful planning, strategic IT investments, and a holistic approach that addresses technology, data, people, and workflow processes.Given the rapidly evolving nature of GenAI and the associated challenges, many leaders may benefit from seeking external expertise that can demonstrate proven accomplishments.Consider partnering with experienced management consultants or technology providers who provide guidance on best practices, help navigate regulations, and accelerate adoption.By embracing GenAI's potential while addressing its challenges head-on, savvy leaders can position themselves at the forefront of this transformation, creating lasting business value.Reach out to learn more about the most effective best practices.More...

Are your board of directors and executive team ready to transform your business with the latest technology, or will you be left behind as your competitors accelerate their adoption?The transformative power of Generative AI (GenAI) applications is impacting industries across the globe, promising not only enhanced efficiency but also new avenues for value creation.According to the latest research by PwC, a significant 70 percent of CEOs anticipate that GenAI will fundamentally change how their companies operate in the next three years.Let's explore the key insights from PwC's report, focusing on the GenAI "Value Realization Flywheel" and its implications for businesses seeking to harness this methodology.The Promise of GenAI Across IndustriesGenerative AI is poised to revolutionize various business sectors, with software companies potentially seeing a 20 percentage-point increase in their profit margins.Even industries with modest projected gains, such as transport and logistics, could benefit from a 1 percentage point profit increase, highlighting GenAI's broad applicability.These figures, while promising, are contingent on integrating GenAI into existing operating models without accounting for the costs of development and deployment. Nevertheless, the potential for market disruption and innovation-led digital business growth is substantial.Understanding the GenAI Value Realization FlywheelPwC introduces the GenAI Value Realization Flywheel as a strategic framework to guide leaders and their organizations in maximizing GenAI's commercial potential.This concept and methodology draws inspiration from the flywheel mechanism, where initial efforts to generate momentum lead to sustained energy and value creation over time.The PwC flywheel approach emphasizes:Value Hypothesis: Establishing a strategic assessment of GenAI's potential business value, informed by organizational goals and industry benchmarks.Prioritization of Use Cases: Identifying and focusing on key GenAI applications that promise the most significant return on investment (ROI).Deployment and Learning: Testing GenAI solutions in controlled environments to refine and optimize lessons learned before a broader rollout.Cost and Carbon Evaluation: Assessing the financial and environmental impacts of GenAI implementation to ensure sustainable practices.Strategic Steps for GenAI ImplementationThe flywheel framework outlines a structured approach to GenAI deployment, emphasizing the importance of a responsible and strategic rollout. Key methodology steps include:Create Your Value HypothesisOrganizations must begin by crafting a GenAI value hypothesis that considers both the immediate efficiency gains and the long-term strategic potential for reinvention.The PwC research indicates that up to 40 percent of time spent on routine tasks could be optimized through GenAI, underscoring the strategic importance of focusing on efficiency improvements while keeping an eye on transformative opportunities.Prioritize Key Use CasesFocusing on the top five GenAI use cases can yield 50 percent to 80 percent of the overall value derived from the technology. For instance, in the luxury sector, GenAI can drive hyper-personalized marketing, while in software development, it can enhance productivity by automating code generation.Select Foundational GenAI ToolsChoosing the right GenAI tools is crucial to avoid future tech debt. Organizations should balance robustness with adaptability, selecting foundational models that can scale and integrate with existing systems. This may involve using public GenAI models or developing bespoke solutions for sensitive data applications.Assess Cost and Carbon ImpactEvaluating the cost implications of GenAI deployment is essential, not only in financial terms but also in considering other factors. While GenAI can be energy-intensive, it also offers opportunities for efficiency gains that can offset emissions from other sources.Develop, Deploy, Test, and LearnContinuous testing and iteration are vital in the rapidly evolving GenAI applications landscape. Organizations should adopt a flexible implementation approach, learning from each deployment to refine strategies and maximize value realization.A Call to Action for Senior ExecutivesAs GenAI tools and services continue to evolve, it presents both opportunities and challenges for business leaders. Senior executives should proactively engage with these new tools, considering their potential to drive workflow productivity and business model innovation.Seeking industry-specific ROI proof points can provide valuable insights and guidance. By using an informed approach, organizations can position themselves at the forefront of GenAI adoption, unlocking new avenues for digital business growth and value creation.However, GenAI vendor proposals should go beyond basic financial ROI assessments, providing insights on how to achieve the desired business outcome. A credible ROI estimate will be accompanied by a realistic deployment execution plan, making the outcome attainable.The GenAI Value Realization Flywheel offers a comprehensive framework that forward-thinking organizations can apply. Line of business managers can achieve their goal of gaining C-suite approval for their project, once they've fully developed the GenAI business case.Reach out to learn more about the most effective best practices.More...

How can applied technologies advance digital business growth and unlock strategic competitive advantages? Here's a proven approach.In the rapidly evolving commercial landscape of artificial intelligence apps, Generative AI (GenAI) tools have delivered unprecedented results.As a C-suite executive, understanding these innovative GenAI technologies can empower you to act decisively. Why now? It's a leadership imperative.A recent comprehensive study of GenAI Prompting techniques offers valuable insights that can be directly applied to enhance your organization's AI strategy.Strategic Importance of Structured PromptingAt the core of interacting with Generative AI tools lies the concept of Prompting - the art and science of crafting inputs that guide GenAI tools to produce desired outputs.The study reveals that well-structured prompts consistently lead to improved results across a wide range of tasks. This finding underscores the critical need for organizations to develop expertise in Prompt Engineering to maximize the value derived from GenAI investments.For C-suite executives, this requires resources to build internal skill capabilities in prompt engineering or partnering with external experts who can optimize GenAI tool use cases.By doing so, you can ensure that your organization gains the full potential of GenAI, leading to more efficient operations, enhanced decision-making, and innovative product development.A Common Language for AI CommunicationOne of the research study's most practical contributions is the establishment of a structured understanding of prompts, including a comprehensive vocabulary and taxonomy of prompting techniques. This standardized terminology can significantly improve communication within your organization and with external partners when discussing AI implementations.By adopting this common language, you can:1. Facilitate clearer discussions about AI strategies and implementations.2. Streamline the onboarding process for new team members working with AI.3. Enhance collaboration between technical and non-technical stakeholders.4. Improve the efficiency of AI-related project management.Furthermore, investing in training and coaching programs to familiarize your teams with this terminology can lead to more effective GenAI utilization across your organization.Diverse Prompting Techniques for Varied ApplicationsThe research identifies 58 different text-based prompting techniques, along with additional multilingual and multimodal techniques. This diversity offers a rich toolkit for addressing various business challenges. Some key categories include:In-Context Learning: Allows AI models to adapt to specific tasks without extensive retraining.Zero-Shot Prompting: Enables AI to perform tasks without prior examples, increasing flexibility.Thought Generation: Guides AI to break down complex problems into manageable steps.Decomposition: Helps in tackling large, complex tasks by breaking them into smaller subtasks.Ensembling: Combines multiple AI outputs to improve accuracy and reliability.Understanding these prompting techniques empowers your leadership team to select the most appropriate approach for each use case, potentially resulting in more effective GenAI tool implementations and better business outcomes.Multilingual and Multimodal CapabilitiesThe research study also explores prompting techniques beyond English text, including multilingual and multimodal applications. This is particularly relevant for global organizations or those dealing with diverse data types.Multilingual prompting techniques can help break down language barriers, enabling more efficient global operations and thereby expanding your market reach worldwide.Multimodal prompting, which incorporates various data types such as images, audio, and video, opens up new possibilities for GenAI applications in areas like content creation, quality control, and customer service.Practical Applications: Lessons from Case StudiesThe research paper includes two insightful case studies that demonstrate the practical application of GenAI prompting techniques:Benchmark Testing: Various prompting techniques were tested against the MMLU benchmark, providing insights into their relative effectiveness. This approach can be adapted to evaluate and optimize AI performance for specific business use cases.Real-World Application: A detailed exploration of prompt engineering was conducted to identify signals of frantic hopelessness in support-seeking individuals' text. This case study illustrates how carefully crafted prompts can be used to extract valuable insights from unstructured data, with potential applications in areas such as customer sentiment analysis or risk assessment.These case studies highlight the importance of experimentation and iterative refinement in developing effective GenAI prompting strategies for your organization's unique needs.GenAI Security and Ethical ConsiderationsAs with any powerful technology, the research study emphasizes the importance of addressing generative AI security and ethical concerns. It discusses potential risks such as prompt hacking and biases in AI outputs.For C-suite executives, this underscores the need to implement robust security measures and ethical guidelines when deploying GenAI tools and enterprise AI systems.Developing clear policies around AI use, regular audits of AI outputs, and ongoing training for employees on ethical AI practices should be integral parts of your AI strategy.Call to Action: Embrace the Prompting RevolutionThe insights from this comprehensive research study on prompting techniques offer a clear roadmap for C-suite executives to enhance their organization's GenAI capabilities. To stay competitive in an AI-driven world, consider taking the following steps:Invest in prompt engineering capabilities, either by training internal teams or partnering with external subject matter experts.Adopt the standardized prompting terminology to improve communication and team collaboration.Experiment with various prompting techniques to identify the most effective approaches for your specific use cases.Explore multilingual and multimodal prompting to unlock new opportunities for global expansion and diverse data utilization.Implement proven security measures and ethical guidelines for GenAI tool use within your organization.Encourage a culture of continuous learning and experimentation with AI technologies.By taking action to master the commercial art and science of prompting, you can position your leadership team and organization at the forefront of the AI-infused economy, driving innovation, efficiency, and digital business growth.The future is being shaped by bold visionary leaders who can effectively harness the power of GenAI tools - ensure that your organization is among them.Start now. Prepare to reap the anticipated rewards.Research Source: The Prompt ReportReach out to learn more about the most effective best practices.More...

As stewards of your long-term competitiveness, are you boldly harnessing the artificial intelligence (AI) potential as a strategic catalyst for superior digital business growth?In an era of modern commercial disruption, harnessing AI technology is rapidly becoming the defining factor separating bold industry leaders from the fearful global market laggards.AI is a quintessential technology that, like past shifts such as the internet and cloud, will unlock transformational opportunities across every sector. For enterprises, strategically capitalizing on AI has become an imperative for reinvigorating competitiveness.While many companies have initiated AI pilot projects and limited use cases, haphazard and siloed efforts will not suffice. Boards must aspire for more -- catalyzing an enterprise-wide embrace of AI to reinvent their core business and uncover game-changing innovations.Realizing this vision requires AI leadership to extend from corporate strategy to ethical governance. It is a multi-dimensional undertaking spanning AI application mastery, data excellence, human-AI symbiosis, and a culture of agility and intelligent process automation.A Playbook for Digital Growth and ReinventionFor boards to position their companies as AI leaders propelling digital business growth and industry model change, they must champion a holistic strategy encompassing:Vision and Primacy - Develop an inspiring AI vision elevating it to a corporation-wide innovation mandate and strategic priority. Designate an empowered AI leader role reporting directly to the board. Link executive compensation to embedding AI capabilities.AI-First Reinvention - Rapidly leverage AI to reinvent products, services, business models, and the entire customer experience. Cultivate an entrepreneurial mindset driving the company's ongoing digital business renaissance via AI capabilities.Data Excellence - Establish AI-fueled data governance, infrastructure, and cross-functional data science capabilities as an essential competency. Prioritize capturing proprietary data assets and unique domain data. Aggregate rich customer insights.AI Engineering - Move quickly to develop world-class AI capabilities core to the enterprise's strategic future. Reengineer processes to embed AI automation, optimization, and intelligent decisions.Human-AI Fusion - Re-architect employee roles to synergize complementary AI and human strengths. Transition the workforce through continuous reskilling. Promote human-centered design thinking fostering sustainable AI-human partnerships.Ecosystem Orchestration - Cultivate an open innovation ecosystem amplifying AI capabilities through strategic partnerships with startups, academia, customers, and crowds. Help shape industry standards incentivizing interoperability.Ethical AI Governance - Implement clear ethical AI guardrails, practices and review processes aligned with values like fairness, transparency, privacy and social benefit. Evangelize an AI-empowered digital ethics identity strengthening brand trust.Seizing Deep-Domain Industry-Specific AppsWhile AI is a powerful general-purpose technology, its ability to unlock unique competitive advantages will often hinge on how adeptly it is harnessed for an enterprise's particular industry dynamics, business domains and use cases.Board of Director members must ensure their companies capitalize on this opportunity by developing tailored AI strategies aligning with their specific industry or sector playbook.The emergence of advanced Generative AI (GenAI) tools has become a special catalyst for this industry-focused approach to digital business innovation. It's a key to rapid progress.Unlike previous AI models confined to narrow applications, Large Language Models (LLMs) and other GenAI capabilities can be instructed and fine-tuned to practically any complex domain requiring human-like reasoning, analysis, and content generation capabilities.For example, a consumer products company could leverage GenAI models to design innovative new product concepts ideated for their brand's distinct customer segments and global market positioning.Simultaneously, those same AI assistants could create compelling marketing content at scale customized for diverse buyers and digital channels. On the operations side, GenAI could be employed for automated supply chain optimization through third-party data streams, historical insights, and predictive analytics.Similarly, a financial services firm could use GenAI to create tailored portfolio analyses, recommendations and financial plans specifically modeling their clients' personal contexts and institutional guidelines.Those same AI capabilities could streamline client communications by automating natural language interfaces and understanding finance-specific terminology. Regulatory oversight functions could harness GenAI's reasoning abilities to scan for financial compliance risks and suggest mitigating actions based on the latest rules.Across teams, the transformative potential is immense when companies develop GenAI capabilities closely aligned with their core industry expertise and proprietary data assets.This fusing of GenAI tools with deep domain specialization enables operational optimization, product and service innovation, and customer intelligence capabilities -- all key sources of strategic competitive advantage.Realizing these unique opportunities will require boards to cultivate GenAI skills, data repositories, and strategic vendor partnerships. They will need to actively govern GenAI model development and use case identification while prioritizing industry- and domain-specific applications.Furthermore, creating an entrepreneurial corporate innovation engine continuously ideating and piloting promising industry domain-focused GenAI solutions will be critical to success.By combining the power of GenAI tools with focused proprietary data mastery, boards can catalyze their enterprises' transformation into sector-disrupting digital business leaders.New AI-conceived products, automated knowledge work paradigms, and customer engagement models will reshape many industries. Through diligent oversight ensuring responsible practices, boards can ensure these GenAI-enabled innovations benefit all stakeholders while fortifying their companies' market prominence.Decisive Action: A GenAI Window of OpportunityWhile formidable, proactively transforming into a GenAI-driven enterprise will be imperative for any company seeking to remain relevant and prosperous in the decades ahead. The competitive advantages and growth opportunities are simply too compelling to delay.Therefore, savvy board directors must make haste to provide visionary leadership catalyzing an enterprising and responsible GenAI renaissance for their company.As a seasoned management advisor, I can partner with your board to craft a customized sales and marketing GenAI adoption strategy optimized for your unique corporate context.Together, we will collaboratively design transformative GenAI app solutions, implement agile engineering and innovation practices, cultivate human-centered workforce competencies, and implement ethical governance guardrails.Working with C-suite executives toward a shared goal, we can position your enterprise to thrive by harnessing GenAI's full potential as a strategic growth catalyst.Now is the time to courageously reinvent your company as a GenAI-fueled industry disruptor capturing all the digital business growth benefits. Your GenAI-empowered path to strengthened competitiveness and renewed growth awaits. Are you ready to act now?Reach out to learn more about the most effective best practices.More...

We have reached the tipping point for business technology investment. The integration of Artificial Intelligence (AI) into the economy is a transformative force that executives can no longer ignore.The Stanford HAI's "Artificial Intelligence Index Report 2024" provides invaluable insights into the economic impact of AI, highlighting both opportunities and challenges that demand strategic action from today's business leaders.The AI Investment Race: America Sprints AheadThe United States has emerged as the undisputed leader in AI investment, outpacing China and the European Union by a substantial margin.In 2023, American companies invested a staggering $67.2 billion in AI, nearly 8.7 times more than China, the next highest investor.This investment surge underscores the immense strategic importance placed on AI by U.S. enterprises, positioning them as frontrunners in the race to harness this game-changing technology.Job Market Dynamics: AI's Transformative ImpactWhile AI-related job postings in the U.S. declined from 2 percent to 1.6 percent of all listings in 2023, this shift reflects the evolving nature of AI's impact on the job market.As AI capabilities advance, certain tasks and roles are being automated, while new opportunities emerge for human-AI collaboration and augmentation.Executives must proactively address these job market dynamics by reskilling their workforce and fostering a culture of continuous learning.Generative AI: Driving Cost Savings and Revenue GrowthThe Stanford report highlights the transformative potential of Generative AI (GenAI), with 42 percent of surveyed organizations reporting cost reductions and 59 percent experiencing revenue increases from its implementation.This remarkable finding underscores the urgent need for executives to strategically integrate GenAI tools into their operations, enabling cost optimization and revenue generation.Accelerating AI Adoption Across IndustriesAI adoption is rapidly accelerating, with 55 percent of organizations using AI in at least one business unit or function, up from 20 percent in 2017.This trend transcends industry boundaries, signaling a widespread recognition of AI's ability to drive operational efficiencies, enhance decision-making, and unlock new business models. Executives must assess their organization's AI readiness and develop a comprehensive strategy and execution plan for leveraging this powerful technology.The Rise of Robotic Automation: Collaborating with HumansThe Stanford report highlights the increasing prevalence of collaborative robots, with installations rising from 2.8 percent of all new industrial robots in 2017 to 9.9 percent in 2022.This trend underscores the growing emphasis on human-robot collaboration, enabling businesses to augment human capabilities while enhancing productivity and efficiency. Executives must carefully navigate this transition, ensuring full integration and fostering a culture that embraces human-machine collaboration and value co-creation benefits.AI's Dual Impact: Productivity Gains and Skill AugmentationStudies cited in the Stanford report illustrate AI's dual impact on the workforce: enabling workers to complete tasks more quickly and improving output quality while bridging the skill gap between low- and high-skilled employees.However, the report cautions against the misuse of AI, which can lead to diminished employee performance or unintentional productivity decline.Executives must strike a delicate balance, leveraging AI to enhance productivity and upskill their workforce while maintaining rigorous oversight and governance.AI in the Spotlight: A Priority for Fortune 500 CompaniesThe Stanford report's finding that AI mentions in Fortune 500 earnings calls have nearly doubled since 2018, with GenAI being the most frequently cited theme, underscores the strategic importance of AI applications for large enterprises.Executives must prioritize AI as a critical business imperative, fostering innovation and continuously evaluating the competitive landscape to remain at the forefront of this technological revolution.Outlook for AI-Empowered Strategic Business OutcomesIn conclusion, the "Artificial Intelligence Index Report 2024" provides a comprehensive overview of AI's economic impact, offering executives valuable insights to inform their strategic decision-making.As AI continues to reshape industries and redefine competitive landscapes, those who embrace this transformative technology with a well-crafted strategy will capitalize on its vast potential and gain a sustainable competitive advantage.Furthermore, with AI disrupting virtually every industry and GenAI proving to be a game-changer in driving cost efficiencies and revenue growth, executive leaders must proactively develop and execute a robust go-to-market approach.GenAI adoption must align with strategic objectives, foster a culture of innovation, and position the company at the forefront of an evolving Global Networked Economy.Reach out to learn more about the most effective best practices.More...

Some executives have taken the lead, while others sit on the sidelines. The global business landscape is undergoing a seismic shift driven by Generative Artificial Intelligence (GenAI).New GenAI tools, with their ability to produce human-quality text, code, and multimedia content, present a once-in-a-generation opportunity for you to propel your organization toward unprecedented innovation and value creation.The Gap Between Leaders and Laggards is WideningA recent McKinsey report paints a concerning picture: companies with robust digital and AI capabilities are already accelerating ahead of many traditional competitors.These leaders boast total shareholder returns two to six times higher across sectors. This isn't simply a coincidence. It's a testament to the compounding advantage gained by those who've invested in building a comprehensive AI arsenal.These organizations have transformed themselves into AI powerhouses. From crafting strategic roadmaps to cultivating specialized talent and revamping data infrastructure, they've established a continuous cycle of identifying opportunities, rapidly developing solutions, and ensuring widespread adoption.Perhaps most alarmingly, the McKinsey report reveals a rapidly widening chasm between global market leaders and laggards. The apparent gap in digital and AI maturity scores has ballooned by 60 percent in three years.Industries heavily reliant on data and software -- like high technology, banking, and insurance -- are witnessing particularly stark disparities. Eventually, all industries will be impacted.The Next Battleground for Competitive AdvantageAs GenAI continues its exponential growth it will undoubtedly become a defining factor in shaping the future competitive landscape across all business sectors.Companies that fail to prioritize GenAI integration and capability risk becoming relics of the past. The call to action for senior executives is clear: develop a comprehensive GenAI strategy – now. This strategy must encompass key pillars including:Talent Acquisition: Secure the expertise needed to unlock the potential of GenAI. Recruit data scientists, AI engineers, and creative professionals who can guide the development and implementation of GenAI solutions.Data Infrastructure: Build a robust data foundation to feed the AI engine. Invest in data acquisition, storage, and management capabilities to ensure the quality and accessibility of data needed for GenAI models.Agile Operating Models: Embrace a culture of experimentation and rapid iteration. Break down silos and foster collaboration between IT, business units, and data science teams to facilitate the rapid deployment of GenAI solutions.Change Management: Prepare your workforce for the GenAI revolution. Implement robust change management processes to mitigate resistance, address concerns, and equip employees with the skills to thrive in an AI-powered future.In summary, delaying this critical step will only exacerbate the situation. Savvy leaders are already compounding their advantages by the day. Don't be left behind.Act Now: Embrace GenAI and Join the MovementThe GenAI-enabled digital transformation opportunity is here and now, and the window to secure a competitive edge will close in the foreseeable future.Organizations that move swiftly to leverage this transformative technology are poised to drive innovation, streamline operations, and deliver sustained value to their key stakeholders.This transition is about advancement. It's about becoming a frontrunner in the AI-powered era. Seize the opportunity, embrace GenAI, and join the movement toward a brighter future.To get started, review our Generative AI Adoption Strategy guidance.Reach out to learn more about the most effective best practices.More...

As founder of the Business Technology Roundtable, I can advise senior executives on rapidly emerging technologies and their potential impact on digital business transformation.One of the most significant and potentially disruptive technologies today is Generative Artificial Intelligence (GenAI). Powered by advances in machine learning, this technology refers to AI systems that can generate new content, such as text, images, audio, video, and more in response to prompts from humans.  The pace of advancement in Generative AI has been astounding. Since the public release of ChatGPT in November 2022, tool capabilities have continued to grow at breakneck speed.Business interest has followed suit – attracted by the vast potential to drive efficiency, productivity, innovation, and digital business growth. However, along with the enthusiasm, important questions remain regarding effective adoption approaches, risk management, workforce retraining, and ethical implications.To better understand current Generative AI adoption and business leader perspectives, Deloitte recently completed an insightful global survey of over 2,800 executives who are actively piloting or implementing GenAI tools within their organization.As leaders race to capitalize on meaningful and substantive application possibilities, the key findings deliver an important reality check on current priorities, progress, and concerns.Excitement Remains High Amidst Great Expectations 62 percent of surveyed executives ranked 'excitement' as a top emotion when thinking about generative AI use cases, tinged with some uncertainty.79 percent expect generative AI to substantially transform their organization within 3 years – 31 percent in less than a year.91 percent believe it will boost productivity, 27 percent significantly.The results confirm strong, sustained enthusiasm for generative AI amongst the global early adopters, with transformative digital business impacts expected soon.However, as pilots progress to production, realizing the technology’s full potential while managing risks and unintended consequences will be critical.  Many Leaders Express Confidence in GenAI Expertise 44 percent rate their organization as 'highly expert' in generative AI, quite surprising given its early stage.Those rating expertise very high also view generative AI more positively overall.However, they also feel more pressure to adopt it quickly and see it as more threatening to existing business models.As the pace of change accelerates, maintaining a “beginner’s mindset” will help ensure that organizations stay open to new ideas and possibilities.Regardless of perceived expertise today, there will always be more to learn about rapidly advancing technologies like Generative AI.Current Focus Remains on Efficiency and Cost Reduction 56 percent of organizations are primarily applying generative AI to improve efficiency and productivity.35 percent are focused on reducing costs.Only 29 percent are currently targeting innovation and growth.While early results will likely come from optimizing existing processes, the most transformational benefits will emerge as organizations move up the value creation curve.They will need to reinvest efficiency gains into developing the specialized industry solutions and capabilities needed to drive competitive differentiation. Most Organizations Use Off-the-Shelf GenAI Solutions71 percent are relying on productivity applications with integrated generative AI capabilities.61 percent are leveraging enterprise platforms with embedded generative AI.Just 23 percent have adopted tailored, industry-specific generative AI software.  As GenAI tool adoption expands, demand will grow for more customized solutions aligned to organizational needs and data assets.To maximize value creation, GenAI strategies must consciously focus on innovation and differentiation over time, not just quick hits. Talent, Governance, and Risk Preparedness are LackingOnly 22 percent feel 'highly prepared' to address generative AI talent requirements.Just 25 percent believe they are highly prepared to tackle governance and risk.78 percent agree that expanded government regulation of AI is needed.Realizing generative AI’s potential while keeping risks in check will require coordinated advances in technology, talent, and trust.Organizations must significantly invest in skills development, technical capabilities, and responsible oversight mechanisms to extract the full value.Potential Societal Impacts of GenAI are Top-of-Mind51 percent expect generative AI to increase economic inequality globally.49 percent believe its rise may erode overall trust in institutions.   With great power comes great responsibility. As generative AI infiltrates business and society, executives must weigh its benefits against ethical risks, and lead accordingly within their organizations – not wait for external intervention.The Suggested Next Steps for Senior ExecutivesWhile insights from Deloitte’s survey reveal valuable signs of early progress, they also highlight gaps in preparedness as the scale of digital transformation accelerates.Here are some next steps for executives to consider:Maintain beginner’s minds: There will always be more to learn about rapidly changing technologies like generative AI. Stay curious, humble, and adaptable even as your experience improves.Extend pilots to production: Don’t get stuck in endless cycles of small-scale experimentation. Commit to scaling adoption with governance and talent to deliver material outcomes.Reinvest for innovation: Channel efficiency gains from early generative AI successes into developing strategic business differentiators that drive digital growth.Customize for competitive advantage: Complement off-the-shelf solutions with specialized industry-specific models and data tailored to your unique business.Mitigate risks proactively: Implement capabilities to monitor models and validate outputs. Update policies dynamically as technologies and regulations evolve.Reskill talent continually: Identify generative AI talent needs across your workforce early. Offer extensive learning to complement employee skills with new technology.  In the exponential world of generative AI development and adoption, organizations cannot afford to stand still. Executives must lead dynamically to transform uncertainty into an upside opportunity today and a competitive advantage for tomorrow.The key decisions made at this embryonic stage of generative AI emergence may profoundly impact digital business outcomes for years to come – making this a time for bold proactive investment, not fearful or cautious stagnation.That said, I believe the GenAI laggards could become left behind. Moreover, I anticipate that the demand to focus on use cases aligned with desired business outcomes will require superior skills combined with deep domain industry experience.That's why I predict the rise of a GenAI Polymath role. The large enterprise leadership demand for these unique individuals is somewhat inevitable.Reach out to learn more about the most effective best practices.More...

Artificial Intelligence (AI) adoption is accelerating globally, transforming business and government. However, a new study by Cisco Systems reveals that while intentions to adopt AI are rising sharply, actual abilities to effectively leverage these technologies continue to lag.An overwhelming 97 percent of business leaders state that the urgency to deploy AI technologies has increased significantly or somewhat at their organizations in just the past six months.This mounting urgency is coming from the top-down, with over 50 percent saying it is being driven by their CEO and board of directors. Meanwhile, the C-suite is being tasked to prepare for action.As a result of this mounting pressure, 95 percent of organizations now have an AI strategy in place or under development. Looking ahead, 84 percent believe AI will have a major impact on their business operations.New AI Deployments UnderwayMany organizations have already started an AI deployment, prioritizing IT infrastructure and defensive cybersecurity solutions.The types of AI technologies seeing the most use currently are Machine Learning (ML) solutions and Predictive AI. Moreover, 40 percent have plans to deploy Generative AI (GenAI) in the next 12 months.Areas seeing the most AI adoption include improving efficiency of systems and operations (63 percent priority), boosting innovation capabilities (51 percent), and enhancing customer experiences (47 percent).However, only 25 percent of respondents are focused on opening new digital business revenue streams with AI capabilities.AI Solution Readiness Gaps PersistDespite strong ambitions, most organizations are still not ready to fully capitalize on AI's digital transformation potential.Overall, just 14 percent of respondents meet the criteria of what Cisco researchers have characterized as "Pacesetters" who are leading global AI readiness efforts.The remaining 86 percent are "Chasers" moderately prepared (34 percent), "Followers" in early stages (48 percent), or the "Laggards" largely unprepared (4 percent).Note, significant gaps exist across the six pillars assessed in the study:1) Strategy: 29 percent Pacesetters, 44 percent Chasers, 23 percent Followers, 4 percent Laggards.While considerable progress on developing strategies, only 41 percent have defined metrics and 45 percent have long-term funding plans for measuring and supporting AI deployment.2) Infrastructure: 17 percent Pacesetters, 30 percent Chasers, 45 percent Followers, 8 percent Laggards.Ninety-five percent foresee AI workloads surging, demanding increased computing power, data center upgrades, network performance, cybersecurity, and energy efficiency. But most infrastructures have limited scalability and adaptability for complex AI applications.3) Data: 13 percent Pacesetters, 30 percent Chasers, 40 percent Followers, 17 percent Laggards.Eighty-one percent admit data remains siloed in IT systems, limiting AI effectiveness. Only 21 percent have optimal network latency for demanding AI workloads. Data management shortcomings risk model reliability and security.4) Governance: 17 percent Pacesetters, 27 percent Chasers, 45 percent Followers, 11 percent Laggards.Just 34 percent have comprehensive AI policies and protocols in place to address emerging ethical risks around areas like bias, transparency, and privacy. And 25 percent lack processes to correct data bias issues detected. Gaps can create legal, reputation, and financial liability.5) Talent: 17 percent Pacesetters, 27 percent Chasers, 45 percent Followers, 11 percent Laggards.Forty-seven percent are moderately well-resourced for AI talent. But 90 percent are investing in re-skilling to address gaps in employee proficiency. Recruiting and retaining qualified AI professionals persists as a roadblock.6) Culture: 9 percent Pacesetters, 40 percent Chasers, 38 percent Followers, 13 percent Laggards.While 79 percent are embracing AI urgently, receptiveness varies greatly between senior leaders and middle management or employees hindering adoption. Only 26 percent have comprehensive change management plans to smooth AI integration.Seizing the AI Competitive AdvantageWith intentions far ahead of abilities currently, companies have a pressing need to invest in building robust foundations across these pillars to achieve AI success.Those able to effectively leverage AI have the opportunity to gain sustainable competitive advantage through improved efficiency, innovation, customer experiences and more.But this window of opportunity is closing quickly – 61 percent predict negative business impacts if AI strategy implementation is delayed beyond 12 months. The time for action is deemed to be now.AI Readiness Index RecommendationsAdopt long-term strategic planning to guide AI deployments beyond immediate efficiencies towards continuous innovation and growth.Build highly scalable, flexible IT infrastructures with strong compute power, network performance, and cyber resilience to handle increasing AI workloads.Break down data silos through centralized management for greater accessibility, uniformity, and reliability in fueling AI systems.Implement comprehensive policies, protocols, and training to address ethical risks around areas like bias, transparency, privacy, and security.Foster an inclusive AI culture via change management plans that increase receptiveness across all staff levels through up-skilling, accessibility, and engagement.According to the Cisco researchers' assessment, the window of opportunity to harness AI for competitive advantage is narrowing quickly. Organizations must act now across these critical areas to effectively keep pace with accelerating technology innovation and adoption.Reach out to learn more about the most effective best practices.More...