Artificial Intelligence (AI): A Force Multiplier

It feels like there isn’t a day that goes by without some ground-breaking announcement in Artificial Intelligence (AI) hitting the news feeds. This is lending to a kind of corporate feeding frenzy for AI, or is it just AI FOMO? ?In boardrooms around the world, the directors and captains of industry are talking about AI like never before, on top of that, Generative AI has done something that generations of AI and machine learning before haven’t been able to do: made AI feel real, with tools like Open AI’s ChatGPT of Google's Gemini executives can touch and feel the enormous power of AI.

With so much talk and hype around AI, why aren’t we seeing companies diving head-first into AI transformation? Sure, there are some AI-first organisations, usually tech companies and some early adopters, that are reaping significant early rewards, but for most companies, AI is still more of a buzzword rather than a driver of value creation. Ask the average CEO about the benefits they expect from their AI projects, and you’ll most likely get some vague standard response, “We’re piloting a number of projects at the moment”, but in real terms, many CEOs aren’t quite sure of what value they’ll get, if any, from scaling their AI projects.

In an era where digital transformation dictates the pace of business evolution, artificial intelligence is not just a tool, but a force multiplier. This term, traditionally used in military contexts, refers to a factor that dramatically increases a group’s effectiveness in achieving its mission. In the corporate context, AI holds a similar, transformative potential—empowering companies to transcend traditional growth trajectories, multiplying revenue growth, dramatically improving productivity, reducing costs, exponentially increasing profit, and unlocking an unparalleled competitive edge. In a recent McKinsey article, “Ten unsung digital and AI ideas shaping business”, it was estimated that there is $ 30 trillion (yes, with a T) that will arise from digital products yet to be launched.

AI as a Corporate Force Multiplier: The journey of integrating AI into business operations initiate a virtuous cycle. Initial investments in AI lead to increased efficiency and reduced operational costs, thereby boosting profits. These additional resources can then be reinvested back into scaling AI initiatives, which in turn accelerates growth off a lower cost base, creating a self-sustaining loop of investment, innovation, and expansion. This cycle not only accelerates growth but also solidifies a company’s standing in a competitive market, and McKinsey reports that the gap in digital and AI maturity between the leaders and lagging companies has increased by 60%.

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The mastery of AI deployment begets what can be termed an ‘unreasonable competitive advantage.’ It’s a stronghold so robust that competitors grapple to match pace, let alone consider how to overtake. However, achieving and maintaining this competitive edge demands more than just technological investment; it requires strategic foresight and a culture of continuous innovation.

For CEOs and C-suite executives steering the future direction of large corporations, understanding AI’s potential beyond the buzzwords is pivotal. At its core, AI encompasses technologies capable of performing tasks that typically require human intelligence. These range from understanding natural language and recognising patterns to making decisions based on complex data. When woven into every process and subtask within an organisation, AI not only augments efficiency but also paves the way for innovation and growth.

Consider the impact of AI-driven analytics on customer behaviour predictions, enabling personalised marketing strategies, or the use of machine learning for optimising supply chain logistics, significantly reducing costs and enhancing productivity. These are but glimpses into how AI can redefine the way businesses operate, turning routine challenges into opportunities for growth.

Yet, harnessing AI’s full potential is fraught with challenges, from ensuring data privacy and security to addressing ethical considerations in AI deployment. Leaders must navigate these waters with a keen eye on regulatory compliance, ethical standards, and societal impact while driving technological adoption.

As we stand on the brink of a new era in business strategy, the call to action for CEOs and C-suite executives is clear: to recognise AI’s potential as a "Force Multiplier" and actively resource and engage in its rapid deployment. The journey toward leveraging AI begins with a commitment to understanding its capabilities, fostering a culture of innovation, and investing in the future. The time to act is now, for in the race towards digital supremacy, the first mover advantage is undeniable.

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Scott Wilson, GAICD is the Co-Founder & CEO of Wilson A.I. is a specialist Artificial Intelligence (AI) consultancy that helps businesses solve complex business problems and optimise their business results by applying AI/ML to their core business processes.