Reshaping the Business Landscape: Tech Strategy in the Age of AI

Artificial intelligence (AI) has existed as a concept for a long time now, but the technology itself has up until recently been limited to fairly niche applications. Over the past few years though, AI technology has seen incredible advancements, with Generative AI tools having recently seen rapid adoption across several industries. With roughly 35% of businesses having embraced AI technology and 85% of executives having said that it will help them achieve or sustain a competitive advantage, it is apparent that AI has a significant role to play in tech strategy. To make the most of it though, company leadership must understand how to integrate it into their larger business operations and measure its effectiveness.?

AI can serve a wide range of functions, from streamlining business processes to leveraging data for more meaningful insights. This versatility is a big part of what makes it so appealing: no matter what industry you’re in or what function needs optimization, AI likely has something to offer. The value it offers is also varied and diverse: companies take advantage of AI technology in three key ways: value creation, value capture, and value delivery. When an organization fully embraces AI technology, it can give itself a competitive advantage, positioning itself for greater long-term value than more traditional firms by serving the same customers with a better value proposition and a more scalable operating model.

Also despite some of the concerns surrounding AI and its potential to replace human workers, the technology is often most effective when it acts alongside people, providing support and guidance. While AI can handle repetitive tasks that would otherwise waste time, employees can focus on more meaningful tasks that more directly involve their expertise. AI is also useful for making improvements to the customer experience, as it can be used to tap into a deep well of information to transform and personalize user experiences.?

However, to get the most out of an AI investment, companies need to consider their business needs and objectives ahead of time. AI is a powerful business tool, but you need to know what to do with that tool for it to have value. As such, before investing in AI, you should identify your organization’s specific needs and objectives. What are your current processes and how could AI streamline systems or add value? Without a plan, AI’s overall benefit will be minimal, but with a clear direction, it will be meaningfully integrated into your business operations, maximizing its potential in the process.?

Once you have a sense of how you can integrate AI into your business, you can choose the right AI solution for your specific needs. From chatbots to natural language processing, to machine learning, there are a variety of different AI solutions on the market, so it is important to do your research ahead of time. It is also important for business leaders to consider if they need a custom solution or if they can simply go with something that’s pre-built. Regardless of which approach they go with, an AI model needs to be supported with a robust digital strategy that not only defines what data is needed but ensures that all data is managed responsibly and within regulatory requirements. It also sets guidelines for testing AI that minimize disruptions to existing workflows, allowing for a smooth transition while remaining agile.?

Yet perhaps the most important step one must take to ensure the long-term success of an AI initiative is to establish standards to measure and adapt over time. It can be difficult to assess AI progress, especially so if you aren’t continuously monitoring outcomes. This requires organizations to have concrete KPIs that can adequately demonstrate success or failure. They should also allow one to detect deviations from expected performance and offer suggestions for how to correct the course. This is perhaps the step that business leaders most need to take to heart: AI adoption is an iterative process and will take time to see its full value. Those who are patient and focused in their approach will see the greatest success as AI reshapes the business landscape.