3 Absolute Reasons to Start Your AI Transformation Today

Welcome to DX Weekly — a free newsletter to help you unleash the power of digital for your company. Subscribe here . Digital transformation is the antidote to any company becoming irrelevant, and each week, I’ll share new actionable information to help you and your organization succeed in the digital world.

Digital transformation is essential to keep up with a rapidly changing world, and the exponential growth of AI has only increased this urgency. Industry leaders like Amazon, Starbucks, and Netflix gained massive success through continuous innovation, including the strategic adoption of advanced technologies like AI.

Here are three key reasons why transformation is crucial for companies today:

REASON 1: TO REMAIN RELEVANT TO THE CUSTOMER

Modern consumers demand a superior digital experience. About 80% of customers consider the experience a company provides to be as important as its products and services; more than half will switch to a competitor after one bad experience.

However, most companies still struggle to keep up with rising customer expectations. According to a Forrester study, only 6% of U.S. brands were able to significantly improve their customer experience in 2023. The majority scored lower marks in three key criteria: ease, effectiveness, and evoking positive emotions.

Since many people today engage with companies through digital touchpoints, they are more likely to evaluate a brand based on its digital experience. And digitally transformed companies are better equipped to deliver easy and effective experiences that elicit positive emotions.?

For example, Amazon can provide a highly convenient, personalized, and satisfying online shopping experience by leveraging tools like AI, machine learning, and data analytics. These tools allow the company to offer tailored product recommendations, predict customer demand, optimize inventory, plan for the most optimal delivery routes, and more.

While most organizations don’t have the infrastructure and resources of Amazon, they can still enhance their digital experience through tactics like optimizing their existing platforms, improving the UI/UX design, leveraging customer data, and harnessing AI in strategic ways.?

Companies that fail to innovate and adapt quickly to evolving customer preferences are at great risk of quickly becoming irrelevant.?

REASON 2: TO GAIN THE EFFICIENCIES NEEDED FOR COST COMPETITIVENESS

Companies winning in the digital economy are delivering a dramatically improved value proposition to customers: providing more for less. They offer more benefits and features while keeping prices low, giving customers greater value for their money.?

Artificial intelligence can analyze vast amounts of customer data to create highly targeted and personalized solutions, enhancing the customer experience without significantly increasing costs. It can automate routine tasks and processes to minimize operational costs and the expense needed to fix issues caused by human mistakes.

If you don’t have access to these types of opportunities, it can be difficult or impossible to be price-competitive with those that do and still operate profitably.

REASON 3: TO ATTRACT AND RETAIN TALENT

Younger generations have never experienced a time when the internet didn’t exist. They are tech-savvy, so it’s only natural that they want to be a part of digitally savvy companies.?

This might be the most important reason why you should ensure your company has a high level of digital effectiveness—to be attractive to the next generation of employees.

Millennials and Gen Z collectively constitute around 38% of the global workforce , and this percentage is projected to increase to about 58% by 2030.?

As the new generations of employees enter the workforce, decision-makers anticipate the need to offer increasingly sophisticated digital employee experiences in the next five years. This anticipation has a concrete basis.

A 2023 survey found that 56% of U.S. workers already use generative AI to complete their tasks, improve productivity, and streamline work processes. AI and other technological innovations are important tools for the younger workforce who are accustomed to tech-driven solutions. And organizations that prioritize and invest in digital effectiveness are likely to attract and retain top young talent.

BETTER PERFORMANCE

These three reasons give truly digitally transformed companies huge advantages that make them perform better. By reconfiguring your organization to embrace tech innovations, you can model the success of those companies and put yourself in a more competitive—even dominant—position.

Ready to start your transformation? Let’s talk.

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YOUR TURN

What new technology are you using to make your work more efficient? Share it in the comments section below!

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Howard Tiersky is the founder of FROM, The Digital Transformation Agency where he works with leading brands on digital transformation.

• Check out his Wall Street Journal bestselling book, Winning Digital Customers: The Antidote to Irrelevance .
• Howard did an episode with John Petta, the Vice President of Quality and Operational Excellence at Molex—an 80 year old, $9 billion electronic connector manufacturer—and one of the thirteen pioneer Six Sigma blackbelts. John shared exactly how organizations can leverage data to drive organizational success. Listen to the episode here.
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