AI Monthly: How AI-Powered KPIs Measure Success Better

Dear AI Enthusiasts,?

This month we’re exploring how AI is reshaping strategic measurement—the system of metrics quantifying enterprise performance and value creation—by digging into insights from a new global survey of over 3,000 managers and 17 executive interviews from BCG Henderson Institute, BCG X, and MIT Sloan Management Review. ?

Cutting-edge organizations are developing "smart KPIs" powered by AI analytics to challenge assumptions about growth and profitability. By leveraging AI's analytical prowess, they uncover strategic insights and competitive advantages obscured by traditional KPI approaches.?

The benefits are compelling: enterprises enhancing metrics with AI see improved financials, stronger cross-functional alignment, and more accurate forecasting. AI-enriched KPIs drive better business outcomes.?

But it doesn’t happen by itself. Leaders must establish processes to continuously refine KPIs, keep them aligned with evolving objectives, and optimize them for strategic impact.?

As AI redefines strategic measurement, we consider how "smart KPIs" are transforming not just what gets measured, but how.?

Until next time,?

Sylvain Duranton?

?? This Month’s Top Reads: ?

The Future of Strategic Measurement: Enhancing KPIs with AI - BCG Henderson Institute, BCG X, and MIT Sloan Management Review

Dive deeper into the findings from our new global survey to learn more about how AI is being used to fundamentally redefine and enhance performance, profitability and growth. ?

Autonomous Agents: Combining the Best of Humans and Machines?- BCG X?

BCG X has just launched AgentKit, a new full-stack, open-source code framework that enables developers to rapidly build reliable and useful agent applications.??

The Bermuda Triangle of Generative AI: Cost, Latency, and Relevance - Forbes My new Forbes article equates GenAI to the Bermuda Triangle, with three critical components determining whether a project takes flight or sinks: cost, latency, and relevance.

How your company could be tomorrow’s surprise GenAI Leader?- Fortune??

The economics of GenAI are pointing to a shift in the industry’s balance of power that opens tremendous opportunities for companies other than today’s dominant tech players. ?

The Next Frontier in Customer Experience - BCG X?

New frontier technologies, including GenAI, spatial computing, 5G, and AR, are disrupting the field of customer experience. Here are the five biggest converging trends.

Find the AI Approach That Fits the Problem You're Trying to Solve - HBR

By understanding industry constraints and asking the right questions about data, accuracy requirements, and explainability, leaders can choose the right advanced analytics approach to solve business problems the right way.

Try This 5-Point Plan to Successfully Launch the World's Most Important Technology at Your Company - Fast Company

Eric Siegel, author of The AI Playbook, outlines five insights for successfully deploying machine learning in business, starting with overcoming hype by focusing on practical deployment planning rather than just capabilities.

?? Bonus Stream:

The Best Way to Work with AI? A Study May Reveal the Answers - The Wall Street Journal

BCG Henderson Institute's Fran?ois Candelon offers an inside look into our first-of-its-kind scientific experiment exploring how workers can be most effective while using softwares like ChatGPT or Google Bard.

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