Reinvention in the Age of AI

Reinvention is the strategy – The age of AI

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For many companies, the next 12 to 24 months will be a moment of truth. Among those who have invested over the years in new technologies, skills and ways of working, return on those investments has varied. The advent of generative AI presents businesses with unparalleled potential to leapfrog their competitors. Will they seize that opportunity and accelerate their reinvention to set a new performance frontier? Or will they fall further behind in the ongoing technology revolution?

The generative AI revolution will require the board, the CEO and the entire C-suite to understand this technology at a level not previously seen — even though the digital revolution has already reshaped the C-suite to be tech literate.

The 6 characteristics of Total Enterprise Transformation aka Reinvention

1. Lead with Value: Businesses must prioritize developing end-to-end capabilities across their value chains, leveraging generative AI to achieve significant outcomes beyond mere incremental improvements.
2. Develop an AI-Enabled Secure Digital Core: A robust digital core is crucial for integrating generative AI effectively. This involves an architecture that supports seamless data flow and high levels of security and scalability.
3. Embrace the art of the possible: Technology and new ways of working create a new performance frontier for organizations and the industries in which they work.
4. Reinvent Talent and Ways of Working: The advent of generative AI necessitates a reevaluation of talent strategies and working methods. Organizations need to focus on reskilling their workforce and fostering a culture that embraces continuous learning and adaptation.
5. Close the Gap on Responsible AI: As generative AI's capabilities grow, so do the ethical considerations surrounding its use. Businesses must commit to using AI responsibly, ensuring transparency, fairness, and security in all their AI-driven operations.
6. Drive Continuous Reinvention: The dynamic nature of generative AI technology requires businesses to adopt a mindset of continuous innovation. Staying ahead will depend on an organization's ability to evolve continually and embrace new opportunities for improvement and growth.

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Unlike the digital revolution, the largest companies are taking an early lead by leveraging their substantial investment in their digital cores and talent. These companies are 2.5 times more likely to be in the top quartile for the intensity of investment in AI, data and cloud compared to those with revenues below US$50bn. They also have a deeper technology bench.?

Most organizations are still at the beginning of their reinvention journey, with few reinventing at scale today.

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GenAI – Not Your Average Technology Revolution

Those companies that deploy this technology to its full potential will reinvent themselves. At the same time, the only way to deploy it to its full potential is to embrace the need to reinvent processes and talent, while managing the technology through a new capability commonly referred to as responsible AI — and with a digital core that has a data and generative AI backbone.

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What Reinventors Know

• Generative AI is unique in its ability to impact the entire value chain and to drive productivity and growth in a way that establishes a new performance frontier.
• Achieving reinvention through generative AI is only possible by developing end-to-end business capabilities, rather than the more common function-by-function focus on individual use cases.
• Developing end-to-end capabilities requires extensive and coordinated changes across processes, people and technology. Processes need to be redefined, people need to be reskilled and a data and generative AI backbone needs to be built into the digital core.

The Scale

Scale deployments are already delivering step-change results as the following examples illustrate:

• 3M hours saved: A government agency responsibly used the latest technology to deliver automations at speed and scale, saving three million operational hours, while helping a workforce of nearly 90,000 people better serve more than 20 million citizens.
• 16M customer offerings: A bank delivered 16 million hyper-personalized offerings to customers within three months of building a generative AI-powered marketing solution.
• +10% revenues: An insurer reinvented the entire workflow of underwriting — from automatically routing emails to creating insurance quotes based on policyholders’ specific needs — with early results indicating that a revenue increase of up to 10% is possible.

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The Action Plan

• Understand the potential to reinvent your value chain and develop end-to-end business capabilities powered by generative AI and new ways of working. Be intentional in executing on the roadmap versus the more common function-by-function focus on individual use cases.
• Be value-led in every business capability you choose to reinvent with generative AI. Too many organizations have pilots and proofs of concepts with no C-suite approved mechanism to evaluate business value. Rapid interventions are needed to move from hype to material value, and choices need to be made.
• Identify strategic bets where the technology creates differentiated sources of value that can’t be easily captured by competitors. Evaluate whether you can achieve your strategy or are at risk of your competitors getting there first because your digital core or organization — including talent — is not ready. Then plan according to where you are.
• Reorient your organization from siloed functions to end-to-end business capabilities and decision-making through a unified data architecture and cross-functional teams. This will enable you to unlock opportunities within the value chain and open new value pools for the enterprise.

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Looking Ahead

The report from Accenture offers a roadmap for businesses aiming to thrive in the age of generative AI. By adhering to the outlined imperatives, organizations can navigate the challenges and opportunities presented by this groundbreaking technology. As generative AI continues to evolve, the ability to reinvent will become a key differentiator among businesses, determining their success in an increasingly competitive and technology-driven landscape.

The insights presented underscore the importance of proactive and strategic adaptation, emphasizing that the journey toward embracing generative AI is not merely about technological investment but a comprehensive organizational transformation.