The Operating Model for GenAI

The Operating Model for GenAI

One of the things that will be fundamental to companies working on GenAI or supporting clients in adopting GenAI and LLMs is the design of the Operating Model. Many companies have adopted operating models aligned to digital and cloud transformation, and they would have incorporated elements in their models that enabled a few of the following:

  • Agile ways of working
  • Business IT alignment
  • End to end automation
  • Customer experience management
  • Asset light pay as you go commercial models

All these elements continue to be relevant, however they will no longer be sufficient. The operating model designs based on these elements are still focused within the enterprise, and as an extension to partners, suppliers and customers.

Generative AI deployments will need another aspect to be managed in the operating model design, which is the interface with regulators. While digital went below the radar of most regulators worldwide and attempts to regulate came only after some of the ecosystems had billions of users, with GenAI there is a lot of concern and regulatory intervention already.

Responsible companies will also include ethicists to ensure that the GenAI pilots they are deploying are free of bias (at least, the known biases that are controllable), and will include experts who can help deal with unforseen scenarios and help take rectifying measures at speed. GenAI is already leading to a lot of differing viewpoints, and conflict resolution mechanisms will need be specified in these operating models. Read more on this at The Right Shift

Finally, there will be need for CXOs and top management teams to be a key part of the operating models. This would be unlike the token representation from this layer in the operating models in play currently. A lot of education and upskilling of this layer will be important, and the GenAI leaders will start prioritizing these.

These are some high-level thoughts on this topic. In a nutshell, leading companies will have to start creating these operating model frameworks and pitching these to clients to differentiate themselves and their offerings.

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