Unleashing the Potential of AI: A Key to Business Growth

I was asked in an interview recently about the most prevailing innovation challenges facing UK businesses. It's not an easy question to answer; enterprises are complex and distinct, operating in an environment where the pace of change doesn't slow down for anyone. It stands to reason that the myriad challenges facing UK businesses are just as diverse as those that weather them. That said, three challenges tend to crop up more often than others and, in any combination, could block an organisation's ability to innovate.

What do we mean when we talk about innovation?

At its most simple, innovation means doing something differently or, perhaps more boldly, just plain different. In the context of business, innovation can imply something risky (because you don't know how to do it), time-consuming (because you'll need new materials and processes to make it happen) and costly (see previous parenthesis). In a roundabout way, that reflects the three recurring challenges I tend to see customers struggling with - a lack of talent, a lack of time, and a lack of budget.

We all know that innovation is necessary. And we know that GenAI represents a boundless opportunity for innovation. And yet, innovation is hard. Our recent Innovation Catalyst Study , which surveyed 6,600 IT and business decision-makers globally, including 300 from the UK, revealed a stark reality: 95% of UK respondents face significant hurdles to innovation. Challenges ranged from a lack of ROI data to a lack of senior leadership strategy, from a lack of employee buy-in to a lack of access to the right tools. But at the top of the list came those three familiar issues: a lack of time (44%), a lack of the right talent (40%), and a lack of ability to invest (42%). These three factors, often intertwined, can stifle even the most innovative spirit.

Making Time

Considering the insatiable market demand for innovation, the oft-felt lack of time is striking. In today's fast-paced business environment, it is unsurprising that many feel consumed by day-to-day operations. However, when we factor in the time-saving potential of technologies like Generative AI (GenAI), not building time for innovation starts to seem a little shortsighted. Over 80% of our survey respondents believe that machines, far from replacing us, will augment our capabilities and enable human productivity to reach new heights. In short, the time investment in innovation, specifically in AI and GenAI, is worth it.

I believe this professed lack of time to innovate demonstrates opportunities to create a more innovation-focused culture. For that to happen, organisations will need team members to buy into the company vision, people who feel empowered and equipped to handle change, ambiguity, and potential failure. They'll need policies and technology to support workforce innovation everywhere, as well as leaders who can spearhead change.

One effective way to drive innovation is through the appointment of a Chief AI Officer (CAIO). A CAIO can bridge the gap between the technical and business aspects of AI, enabling a more holistic approach that includes understanding the impact of culture. An AI leader can communicate the 'why' behind an AI strategy to team members, give permission to lean in (safely), build support for its adoption and ultimately enable everyone to work in better, more efficient ways. The fact that there are now more than 120 Chief AI Officers worldwide underscores the importance of leadership in driving AI innovation and the desire for a workforce that can effectively use and leverage the technology.

Tapping into Talent

Addressing the talent gap is equally critical. Seventy-two per cent of respondents acknowledge they have a shortage of skills necessary for successful innovation, but only 28% say bridging the skills gap is a priority for 2024. This disconnect is concerning, especially considering that less than half (46%) are actively training or upskilling their workforce on GenAI. This all points to an opportunity to apply more innovative thinking to attracting, developing, and retaining talent.

Interestingly, when asked about the most valuable employee skills for driving innovation, the top response wasn't technical expertise but simply the agility and desire to learn (63%). In fact, 76% agree that the ability to gain new knowledge will be valued higher than the knowledge they already have. In essence, the knowledge we have now is good, but the ability to adapt quickly, embrace new tools, and continuously upskill will be better. This is especially true when we think about AI fluency – understanding when, where and how to use AI tools safely and effectively as the technology evolves - will be crucial.

Here, again, is where a CAIO can help. A top-down approach to AI competence, application and innovation across an organisation can pay dividends. At Dell, our Centre of Excellence for AI works as an enablement function for all of us to build our AI muscle. We've developed a comprehensive curriculum offering levels from foundational to advanced training. The curriculum is tailored to different personas, reflecting the diversity of roles and responsibilities within the company. This approach ensures that, as the landscape and technology evolve, we're bringing our talent along, keeping us all agile and ready to meet ever-changing demands.

Spending differently

Navigating the financial complexities of innovation is another significant hurdle. It's a constant?challenge to deploy effective solutions while promoting ongoing improvement and innovation, all within a competitive and changing landscape. When it comes to AI investment, the upfront cost of AI infrastructure, including GPUs, servers, and storage, is typically one of the biggest barriers to entry for UK organisations.

Just like a time investment in innovation begets more time to innovate, the same is true for financial investment. Investment in innovation creates efficiencies and savings and could free up capital to modernise further. This sentiment is echoed in the research, with 63% of respondents recognising cost savings and efficiencies as key innovation goals for 2024.

What works for one organisation may not work for others, and not every GenAI use case will require the same infrastructure investment. However, with only?18% saying that they plan to create a dedicated budget for AI projects,?many are risking missed opportunities. Predicting growth is tough, especially with Gen AI. Without the right investments and priorities, organisations will struggle to keep up, let alone gain a competitive advantage.

For UK businesses wishing to take advantage of AI's tremendous opportunity while reducing financial risks and avoiding technical debt,?it won't necessarily be about spending more; it'll be about 'spending differently'. Subscription models for AI infrastructure offer a compelling alternative to traditional capital expenditure. This approach provides flexibility, avoids the burdens of outdated hardware, and allows businesses to stay at the forefront of innovation without breaking the bank. A CAIO can help here, too. A CAIO understands a business's overall AI strategy, objectives, and outcomes, making it easier to move forward quickly with decisions around overall technology investments.

We don't know what the future holds. Forty-one per cent of respondents say they don't know what the next 3-5 years will look like for our industry, and 70% of decision-makers agree that the jobs and skills needed in 2030 haven't been invented yet. But one thing is clear: embracing technologies like GenAI is not just about keeping up; it's about unlocking unprecedented opportunities for productivity, innovation, and growth. By fostering an innovation-focused culture, investing in talent development, and embracing flexible financial models, UK businesses can navigate the challenges and emerge as leaders in the age of AI.