Artificial Intelligence is taking the business world by storm. Is your company geared up for this technological shift?
AI in Business: Navigating the AI Revolution
Hey there! AI is taking over the business world, and it's high time for companies to prepare for this tech revolution. But, are we ready for it? Let's find out.
AI adoption can bring about significant changes and introduce new risks. Companies need to be proactive and step up their game to handle AI effectively.
"AI's transformative potential confounds many executives and employees alike," said Rajprasath Subramanian, an enterprise software company SAP's principal enterprise architect. "This stems from a lack of comprehensive understanding and training about AI capabilities, especially with advancements in areas such as agentic AI and large language models."
Fear of job displacement due to AI adoption is a common concern among employees, leading to resistance or apprehension. This fear can hinder proactive engagement with AI tools and limit opportunities for upskilling.
Subramanian advises staying aware of the rapid evolution of AI, as organizations' ability to provide necessary training often lags behind its advancements, leading to a potential skills gap.
AI can be a disruptive technology, and many companies are struggling to adapt. A survey of 6,450 C-suite leaders and 6,000 non-C-suite employees conducted by Accenture found that both groups feel less prepared to respond to the pace of change than they did a year ago.
Only half of C-suite leaders say their organizations are fully prepared for technological disruption, and only 36% have scaled generative AI solutions. "Most companies lack a common AI foundation, making it hard to balance the right speed with the right controls," said Lan Guan, Accenture's chief AI officer.
Nearly one-third of the C-suite executives surveyed by Guan's organization said limitations with data or technology infrastructure is the biggest hurdle to implementing and scaling gen AI.
Investment strategy and the implementation process are crucial factors in an organization's ability to get the most value out of AI. "Generative AI is projected to improve productivity by more than 20 percent over the next three years, so a lack of preparedness for gen AI means lost productivity and failure to achieve meaningful ROI on the investments companies are directing to gen AI," said Guan.
To prepare for AI, companies can develop a clear AI strategy that aligns with their overall vision and mission. This involves identifying areas where AI can add value, setting realistic adaptation timelines, and allocating necessary resources.
Investing in employee training and upskilling is another essential step. "Pharmaceutical companies like Johnson & Johnson have implemented mandatory generative AI training for over 56,000 employees, ensuring their workforce is equipped to integrate AI into various business processes," said Subramanian.
Furthermore, organizations should work closely with their chief data officers and CIOs to establish strong data governance practices, ensuring data accuracy, security, and compliance with regulations. "For instance, companies are advised to have a robust IT infrastructure in place to process large volumes of data, as larger datasets require greater computing power," said Subramanian.
To access the full benefits of AI, companies should rethink their work processes and focus on building a dynamic, digital core. "our websites must encourage their organizations to build a strong technology foundation, enforcing data governance and operationalizing AI to drive scalable, high-impact outcomes," said Guan.
References:
- TechTarget
- Towards Data Science
- CIO
- Forbes
- Monks
- As AI continues to revolutionize the finance business, organizations need to understand the potential risks and benefits associated with deploying generative AI solutions in their portfolios.
- Rajprasath Subramanian, the principal enterprise architect at SAP, emphasizes the significance of comprehensive AI understanding and training, particularly in areas like agentic AI and large language models.
- In the race to adapt to the rapid advancements in AI technology, companies should be wary of the potential skills gap arising from an inability to offer necessary training to their employees.
- Generative AI is expected to improve productivity by more than 20 percent over the next three years, but a lack of preparedness could lead to lost productivity and poor ROI on investments in AI.
- Subramanian advises that companies should invest in employee training and upskilling, as seen in pharma giants like Johnson & Johnson, which provides mandatory generative AI training for over 56,000 employees.
- To maximize the benefits of AI, it's crucial for businesses to establish strong data governance practices and work closely with chief data officers and CIOs to ensure data accuracy, security, and regulatory compliance.
- Building a dynamic, digital core with robust IT infrastructure, enforcing data governance, and operationalizing AI can drive scalable, high-impact outcomes, helping companies confidently navigate the AI revolution in their capital and business ventures.
