How do we move forward with AI in business today? Start HERE.

As a fan of Andrew Ng 's recent TED talk "How AI Could Empower Any Business," I contrasted it with the many other talks in the TED library that raise the spectre of Black Mirror and/or the Terminator films. In that sense, I guess it's why I found Andrew's talk so interesting because it laid out in plain terms how AI can possibly benefit small businesses — like his favorite local pizza joint. Having grown up in a tofu-making business in the "international district" (aka "chinatown") of Seattle, I liked Andrew's perspective because it spoke to an important kind of empathy for folks like my parents.

I knew my parents as always sooo tired. If AI could have enabled them to take more breathers, boss around their hard-working children less <wink>, and/or help the business to make more money so that maybe their kids didn't have to work for free <extra wink>. I would have really loved that kind of AI. And this new kind of AI feels like it might be able to do the job — if aimed in the right directions.

Start HERE

I've found it helpful to oversimplify the nature of a 21st century business with my favorite hobby of mnemonics :+).

Every thriving business strives to be HERE — especially during this new AI wave.

• Hungry
• Efficient
• Resilient
• Enlightened

The first two axes "Hungry" and "Efficient" will feel the most capitalistic.

• Hungry as in, "Hungry for more revenue." This can happen by increasing existing or developing new revenue streams with customer-centricity and innovations fueled by AI.
• Efficient as in, "Do more with less." This is tricky because it means sustaining existing revenue while reducing the amount of resources available to fulfill customers' needs with AI.

But the other two axes "Resilient" and "Enlightened" represent as more nouveau.

• Resilient as in, "Adapting to change as a team." This was pushed to the limits during the pandemic, and the new AI revolution will push work cultures even further as customer expectations continue to shift and drift.
• Enlightened as in, "Sustainability for people and planet." This becomes especially important as we all learn how AI can easily generate negative social and/or planetary impacts if we do not pay attention.

Let's step through HERE to get an initial picture of how I'm using it for a new resource that I'm building for the open-source Semantic Kernel project.

Hungry

This dimension is about a business's drive for growth and expansion. It's about being eager to seize opportunities and increase revenue. Hunger can be sated in several ways:

• Expanding existing offerings: Businesses can grow by finding ways to sell more of their current products or services. This could involve targeting new customer segments, expanding into new geographical areas, or finding new uses for existing products.
• Optimizing pricing strategies: Sometimes, growth can come from adjusting pricing strategies. This could involve raising prices for premium products or services, offering discounts or bundles to increase sales volume, or implementing dynamic pricing strategies based on demand.
• Improving customer retention: Keeping existing customers can often be more cost-effective than acquiring new ones. Businesses can grow by focusing on customer satisfaction, loyalty programs, or personalized marketing to increase repeat purchases.
• Cross-selling and upselling: Businesses can increase their revenue by selling additional, complementary products to existing customers (cross-selling) or by selling higher-end products or services (upselling).
• Innovation: While not the only path to growth, innovation can open up new revenue streams. This could involve developing new products or services, adopting new technologies, or implementing new business models.

How might we use AI in these contexts to feed the hungry, hungry business?

Efficient

This dimension is about maximizing the output or results given the resources available. Efficiency can be achieved through various means:

• Process optimization: Streamlining operations and eliminating waste can lead to significant efficiency gains. This could involve adopting lean manufacturing principles, automating repetitive tasks, or improving supply chain management.
• Organizational structure: Efficiency can also come from the way a business is organized. This could involve reducing layers of management, promoting collaboration, or adopting agile working methods.
• Technological innovation: New technologies can often enable businesses to do more with less. For example, AI and machine learning can automate decision-making processes, cloud computing can reduce IT costs, and data analytics can improve demand forecasting.

How might we use AI in these contexts to run leaner and faster?

Resilient

This dimension is about a business's ability to withstand and adapt to changes in its environment. Resilience can be built in a few ways:

• Diversification: Offering a wide range of products or services, or operating in multiple markets, can make a business more resilient to changes in any one area.
• Financial health: Strong financial management can also contribute to resilience. This could involve maintaining a healthy cash flow, managing debt levels, or having a strong balance sheet.
• Innovation culture: Businesses that foster a culture of innovation are often more resilient because they are better able to adapt to change. This could involve encouraging experimentation, tolerating failure, or providing time and resources for creative thinking.

How might we use AI in these contexts to power a more adaptive organization?

Enlightened

This dimension is about recognizing and mitigating the social and environmental impacts of a business's operations. Enlightenment can be achieved through ways like:

• Sustainable practices: Businesses can reduce their environmental impact by adopting sustainable practices. This could involve reducing energy use, minimizing waste, or sourcing materials responsibly.
• Social responsibility: Businesses can also contribute to society more broadly through corporate social responsibility initiatives. This could involve supporting local communities, promoting diversity and inclusion, or ensuring fair labor practices.
• Innovative solutions: Innovation can also play a role in becoming more enlightened. For example, businesses can develop new products or services that solve social or environmental problems, or they can adopt new business models that are more sustainable.

How might we use AI in these contexts to literally save our world?

Get Ready To "Start HERE"

Let me know in the comments about what you'd like to see at the crossroads of AI and Business — and if there's anything bugging you about how I've laid things out HERE. In the meantime until my new content comes out, if you're looking for a basic introduction to how Semantic Kernel works there's the free LinkedIn Learning course — now with 30,000 certified learners!