Generative AI: Reimagine accelerating the transition

The Generative AI is expected to add $2.6 trillion to $4.4 trillion of value annually, as per a recent McKinsey report. For organizations, the needle has moved from being carefully optimistic to rushing the adoption.?

As Generative AI becomes increasingly widespread, one of the key discussion points is identification of use cases that fit the paradigms of efficiency, productivity, and automation goals amongst others. However, one of the missing pieces in this puzzle is creation of new business models to realize the multiplicity of values that Generative AI creates. We have witnessed how Digital payments like United Payment Interface has revolutionized the payments industry and businesses at large.

For new business models to emerge, there might be a need to review and evolve the current infrastructure ecosystem, processes, capabilities, and prioritization of goals. Hence, a structured financial discipline must drive the baseline for operational objectives and help estimate the costs vs returns of Generational AI imperatives.

Financial discipline could start right from arriving at rent, buy or build decisions. The cost calculations, in its current form, is quite complex as multiple vendors with their multiple models and cross interactions must be considered. Then there is the need for quality data to fine-tune the models.

To ensure quality data, a renewed data architecture might be necessary. Guidelines for generation of synthetic data, ensuring lineage and use of Retrieval-Augmented Generation for tasks become important. Additionally, it introduces the complexity, risk and cost of handling and storage of such large volumes of data.

The risks associated with PII data breach and infringement of IP in large data sets requires a renewed evaluation of compliance guardrails.??

So, it is practical for organizations to start small and create incremental adoption across a complete business process rather than a siloed task. The operational metrics could be true indicators of value realization.?

As organizations build reusable capabilities across functions, the scope of the Generative AI services can be expanded. This will however mean that almost every existing job will be transformed, and up-skilling will be mandatory to align to the redefined processes. We will then finally arrive at new business models that truly benefit from the value of Generative AI.

Therefore to accelerate the transition a reimagined business model is where it all starts. In Generative AI parlance, "the foundational model".