Integrating AI in Your Business

AI / generative AI is proving to be transformative for some and troublesome for others. Machine learning has been around for decades, but generative AI, introduced in November 2022 is being widely adopted due to its accessibility, ease of use, speed, productive impacts, versatility, and scalability. And it’s getting smarter and more versatile at an astonishing pace. ?

New technologies, like generative AI (“genAI”) call for changes and can be productive and/or challenging to integrate. Think cell phones, the internet, digital media, cloud computing, SAAS, or mergers of companies with different systems eg “Your way, my way or this new way” changes can create chaos or open opportunities. AI/genAI is a game changer. In addition to changes for individuals, the culture may well need accommodation.

A company’s culture has the potential to enable positive results – or not. “Culture eats strategy for lunch” famously frames the extent to which culture can impact things. As one group of analysts observed: “If culture is left to chance, it can absorb precious energy and put the handbrake on the organization achieving its purpose, strategy and goals. But if led and managed well, culture can be the rocket fuel for delivering value to stakeholders.” Culture is an output of leadership – highly reflective of their world view or mindset – and intentions.

The current press about AI is deep in the current hype cycle, but it is clearly here to stay and will invariably impact workforces, culture and enterprise value in both already known, and in, as yet unforeseen, ways. Given the AI press to date, and experiences since chatGPT was introduced in 2022, perceptions are mixed:

??????? You might think that AI is the latest technology for VCs and owners to cut employees off their payrolls - and the first to particularly target expensive knowledge workers.

??????? ?AI-driven staff reduction is possible but may be short-sighted. Your business may be profitable right down to the last dollar of sales, but have a major brain drain exodus and be left in the competitive dust.

??????? Truth is, AI has great upside potential to help employees add more value - to augment their impact rather than automate them off the payroll. But until people gain direct experience, see case examples, try proven practices, the cost cut is easier to spot than the value add.

??????? My direct experience is that the more people work with AI, the more they/we all see its upside and learn how to make it happen. Understanding its capabilities is a “contact sport” that opens the door to grasping potentials.

??????? As people work with AI, they get results, learn and experience a shift in mindset. At first, chatGPT looks like mostly a research tool. It evolves from viewing AI as a research / writing tool to be used, to a collaborator to be engaged with, to personalization at scale and next to an autonomous agent capable of independent action. Each stage involves increasing levels of trust, integration, and reliance on AI capabilities, as well as a growing appreciation for the potential of AI to augment and enhance human cognitive processes….along with wise and cautious prevention of misuse / risks

There are four phases of AI assimilation / advancement that each result in increased productivity.

1. Efficiency Superworker —?AI tools, including?Galileo,??enhance the productivity of individuals by up to 20 - 30%?through their automation of repetitive tasks, such as drafting emails or summarizing meetings. Employees still perform their core responsibilities faster and with greater efficiency, allowing them to focus on higher-value activities. This phase represents incremental improvement without fundamentally changing job roles.

1. Empowered Superworker —?In this phase, AI not only assists but takes over portions of tasks, with employees supervising, tweaking, and refining the output. For instance, AI can be prompted by humans to write code or prioritize emails, enabling workers to focus on strategic oversight. This approach?elevates productivity and shifts job responsibilities from execution to orchestration.

1. Highly Productive Superworker —?Human workers support streamlined, highly automated processes when AI begins to restructure workflows entirely. In industries like retail and customer service, AI manages routine interactions while employees handle exceptions or more complex customer needs. For example, customers can order food at fast-food chains through AI-powered kiosks or apps, with a human employee present to ensure the order is correct and handled smoothly. This is job redesign, which?increases the scale and efficiency of operations?while redefining roles to support new systems and technologies.

1. AI-Driven Ecosystems —?In this phase, AI evolves into autonomous?systems?capable of making decisions and managing complex processes. Examples include self-driving cars, automated recruiting systems, or even automated recommendations to support an underperforming employee. At this point, humans shift to roles of monitoring, managing, and refining these AI-driven processes. This stage represents a?transformative leap where traditional job structures give way to new skills and deeper organizational understanding.

Each technological advancement in these phases builds on the progress of the previous. With levels three and four, the jobs currently done by humans completely change. And, by being able to hand off tasks to the AI tools, the humans are freed up to do more important work.?

A Case of AI at Moderna

As a case in point, browse to perplexity.ai, and enter the prompt: “Explain what Moderna has done to develop AI literacy across its workforce.” Here’s its answer:

“Moderna has taken significant steps to make its workforce AI-literate and foster a culture supportive of AI integration. These efforts are part of its broader strategy to embed AI into every aspect of its operations, enhancing efficiency, innovation, and employee engagement.

?AI Literacy Initiatives

AI Academy: Launched in 2021, Moderna's AI Academy serves as the cornerstone of its AI upskilling efforts. Initially, all employees were required to complete a foundational AI course. However, recognizing the diverse needs and expertise levels among staff, the company restructured the program into six tailored learning tracks. These include basic introductions to tools like chatGPT, advanced machine learning applications with platforms like Dataiku, and data visualization courses. This modular approach allows employees to choose training that aligns with their roles and interests.

Practical Training Programs: Moderna emphasizes actionable learning by integrating AI education into real-world applications. For instance, employees use tools like Coursera’s Course Builder to create custom AI solutions for tasks such as data analysis and process optimization. This practical focus has led to the development of over 300 custom GPTs (Generative Pre-trained Transformers) that streamline various workflows across departments.

Partnerships and Tools: Initially collaborating with Carnegie Mellon University for credibility and expertise, Moderna has since brought its training programs in-house. It also partnered with OpenAI to develop bespoke AI chatbots tailored to specific functions, such as dose selection in clinical trials or contract review in legal processes. These tools are widely adopted across the organization, with nearly 65% of employees actively using them.

Generative AI Champions: Moderna created a team of Generative AI Champions across departments to promote AI adoption and provide guidance on leveraging these technologies effectively.

Cultural Transformation

AI-Centric Mindset: Moderna sees AI not just as a tool but as a cultural shift. The company fosters an environment where employees are encouraged to think about how AI can enhance their work. This mindset is central to its goal of becoming a "real-time AI organization," where efficiency and efficacy are prioritized over traditional workforce expansion.

Democratization of AI: By making AI accessible and relevant to all employees, regardless of their technical background, Moderna ensures that everyone can contribute to and benefit from its capabilities. This approach helps scale employee value rather than workforce size as the company grows.

Employee Engagement: Feedback-driven improvements in training programs have significantly increased employee engagement. For example, the Net Promoter Score (NPS) for the AI Academy rose to 71 (a highly positive rating), reflecting growing enthusiasm for these initiatives.

Codified Values: In collaboration with IDEO, Moderna codified its cultural values into "Mindsets" that emphasize innovation and adaptability. These values underpin its efforts to integrate AI into daily operations while maintaining the core principles that have driven its success.

Leadership Involvement: Executives at Moderna actively participate in AI learning and champion its integration across departments, reinforcing a top-down commitment to this transformation.

Impact on Operations

Moderna's focus on AI literacy and supportive culture has led to measurable improvements:

• Faster drug development cycles through optimized processes. Moderna designed its COVID-19 vaccine in just two days in January 2020, before the pandemic had fully unfolded.
• Enhanced efficiency in areas like clinical trials, manufacturing, legal reviews, and customer service. Time to market through clinical trials for the covid vaccine was 12 months – most vaccines have taken years (polio 6, chickenpox 28).?
• Increased employee productivity and satisfaction as they leverage AI tools for meaningful improvements in their workflow.

In summary, Moderna's comprehensive approach—combining tailored training programs, practical applications, cultural alignment, and leadership support—has positioned it as a leader in integrating AI into the workplace while fostering an environment where employees feel empowered to innovate and excel using these technologies.”

As is evident at Moderna, integrating AI into their culture is largely an output of leadership. The key first step is to understand AI capabilities, then assess how exposed various jobs are to the changes that AI can bring, then make the business smarter and better with a portfolio of actions, carried forward by AI capabilities and human creativity – and prudent risk management.

The underlying values are “people first.” Like trust, AI can be supported through many steps, actions, and behaviors in everyday work. Connect AI to advance purpose, culture and brand in a “people first” way and you can build the best workforce most people will ever work In – or lead. Look ahead to factor in future – fitness, and it can be the very strategic, hard-to-copy source of sustainable competitive advantage. People so competent they could work anywhere – so well led they stay, grow and create the future. This is the path Moderna is on. ?So is Dunnington Consulting.

This can only happen with the intention and attention of 1) the board, or owners 2) the leadership team, and 3) an AI roadmap built on people first values – and a cultural framework that gives them expression. Capable, business-oriented HR is necessary, but not sufficient. Data scientists are necessary but not sufficient. Some companies will be AI emergent as they shift gears to integrate AI. Some will be AI-centric from the outset. Those that do neither are likely to die without a ripple.

Every business has the opportunity to disrupt and faces the risk of being disrupted.

Six great resources are:

1)??? Report of the NACD Blue Ribbon Commission on Culture as a Corporate Asset 2017

2)??? Culture Renovation – Kevin Oakes – 14cp – 2023

3)??? Marketing AI Institute, smarterX.ai.?? https://www.marketingaiinstitute.com/

4)??? MIT CISR research ??https://cisr.mit.edu/

5)??? https://www.netgoodbusiness.com

6) See https://www.servicenow.com/workflow/hyperautomation-low-code/enterprise-ai-maturity-index-2024.html

A Call to Action

Embrace the AI-Driven Future Don't let your organization fall behind in the AI race. Take these crucial steps to ensure your business thrives in the age of artificial intelligence:

1. Educate and Empower: Invest in AI literacy programs for your entire workforce. Follow Moderna's example and make understanding AI capabilities a priority across all levels of your organization.
2. Create an AI Council: Coordinate governance and risk management, explain what’s OK and not OK, make informed technical decisions, manage pace, scope and timing, balance business cases with learning intentions, get the right people involved, and things are properly resourced.
3. Use a "People First" Approach: Remember, AI is a tool to augment human potential, not replace it. Foster a culture where AI and human creativity work in harmony to drive innovation and growth - how can the humans and the machines interoperate. Data-based practices, intelligent experiments, collaboration hacks. Create what catalyzes peoples’ learning and results.?
4. Lead with Vision: As a leader, it's your responsibility to guide your organization through this transformation. Develop a clear AI strategy that aligns with your company's values, purpose, and long-term goals. Implement it with use cases, action learning, design sprints, contests, hackathons – and your support.
5. Cultivate Trust: Build a culture of trust around AI adoption. Encourage sandbox experimentation, celebrate successes, and learn from failures as your team explores AI's potential. People will save time using AI. Hava a sandbox of work worth doing and help people find and engage it as they discover more time. Terrific cross training and development territory - just what your learners and doers are looking for.
6. Stay Current: Keep abreast of AI developments and best practices. Leverage resources like the NACD Blue Ribbon Commission report, "Culture Renovation" by Kevin Oakes, MIT and the Marketing AI Institute to guide your journey. Have an online library of case studies and productive prompts for people to access.

Like most other people, we are on a learning journey with AI. Maybe a couple pf chapters ahead, but we certainly haven’t read the whole book on AI – because it’s still being written.

Our purpose is to help create the next generation business models – “people first hearts – AI smarts” – responsible capitalism.

If that rings right for you – let’s chat – maybe there’s a productive collaboration. In our future.

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Bill Dunnington?? [email protected]

Dunnington Consulting??? dba https://www.netgoodbusiness.com

December, 2024

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