How Does AI Maturity Relate To Competitive Advantage?
Dr. Brian Massey
Managing Partner at Anordea | Strategy Advisor, Professor & Keynote Speaker | Helping CXOs Drive Faster AI Transformations across Banking and Financial Services.
Hello and welcome to the latest edition of?AI Strategy Brief. In this edition we’ll look at some recent developments in the AI space and consider how AI Maturity relates to the search for AI-Based Competitive Advantages.
This Week In AI:
AI Can Make You 14% More Productive, Maybe
A new study by researchers at the Stanford Digital Economy Lab and MIT has found that making use of Generative AI can increase your productivity. This study on?Generative AI at Work?examined how a deployment of chat assistants for a Fortune 500 software firm impacted the productivity of customer service agents by providing suggestions on how to respond to customer queries. The study found agents were able to resolve 13.8% more issues per hour with the help of AI. But there’s a catch. The productivity gains were experienced mostly by the least experienced workers new to the company, leading the researchers to conclude that highly skilled workers may have less to gain from AI for now.
Getting Started With Autonomous Agents
If you’ve been following the news on AI lately, you’ll doubtlessly have seen all the buzz building around Autonomous Agents and programs like AutoGPT and BabyAGI. Autonomous Agents are AI programs that are designed to go further than Generative AI programs like ChatGPT. The idea is that Autonomous Agents can be given a mission, such as building a website, and then go execute it themselves. They accomplish this by integrating autonomous bots with generative AI like ChatGPT. If experimenting with Autonomous Agents sounds like something you’d like to try,?The Complete Beginners Guide To Autonomous Agents?by?Matt Schlicht is a good place to start.
AutoGPT & BabyAGI – Not All They’re Cracked Up To Be?
But, not so fast. Some people have been experimenting with Autonomous Agents like AutoGPT and BabyAGI already and finding that, so far, the hype exceeds the reality. A recent?Autonomous Agent Trial?by Avram Piltch found that AAs are useful when it comes to the creative planning side, but much weaker on the execution side. Also, they are bound by the limitations of their inputs. For instance, the trial found that in executing a web design assignment, an Autonomous Agent produced inaccurate material on the Homepage and Privacy Policy pages, rather than query the user for more input and information.?
The Big Idea: How Does AI Maturity Relate To Competitive Advantage?
The starting gun has gone off. Did you hear it? This was the general sentiment at last week’s CeADAR seminar on AI Strategy. The seminar featured several fantastic speakers, and all agreed that this year we have seen a significant increase in the pace of AI development. In particular it seems that AI as a technology has finally ‘landed’.
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Why This Matters Now?
Anytime we look at how disruptive a new technology may be, we always have to ask the question if the technology has arrived in a meaningful way. By this we mean, has the technology advanced to the point where we are starting to see widespread adoption and applications creating real value or ROI across industries. We could look at a technology like 3D Printing for instance, which shows much promise but has yet to experience widespread adoption. In contrast I think it’s safe to say that this year, AI has landed.?
So, What Is AI Maturity?
To put this into context, it’s helpful to consider the concept of AI Maturity. While we may look at the potential Use Cases for individual AI applications, at the organisational level it’s helpful to think in terms of AI Maturity. As a concept,?AI Maturity attempts to gauge how advanced the development of AI is within and across an organisation. Naturally this brings into question aspects around AI Strategy, Governance, Capabilities, Process and Culture, all elements that are woven into the Competitive Advantage of an organisation. At any point, different companies are at different stages in their own AI Maturity journeys, and it is probably worth considering where your own organisation is, versus your closest competitors.?
How Does AI Maturity Relate To Competitive Advantage?
In general, competitive advantage is found in the creation and capture of powerful and rare resources. The old VRIO strategy framework comes to mind.?For AI-Based Advantage, the competition for resources is becoming even more acute, due to the shortages of resources needed to capitalise on developments in AI. Just look at the demand for Data Scientists and programmers with experience working with Python and LLMs to confirm this.?
How Can Leaders Develop AI-Based Competitive Advantage?
Companies that consider AI Maturity earlier, will be further along their own AI journey when the competitive pressure for AI resources increases.?We are looking at a supply shortfall over the next five years, as an increasing demand for AI related skills is confronted by the bottleneck of talent supply. For CEOs, if you thought the last ten years was a battle for talent, you ain’t seen nothing yet. In other words, the starting gun has gone off. Did you hear it?
Leadership Takeaways:
That’s it for this week’s edition of?AI Strategy Brief. Thanks for reading and I hope you enjoyed this update and learned something new. If you found something of value, please subscribe and share this article with others. And if you have any questions, comments, or suggestions, I’d love to hear them in the comments section below.?
See you next time!