A view from strategy consulting on Generative AI

Ridiculously fortunate this week to get the opportunity to speak with Ted Shelton - Partner at 贝恩公司 . Ted works as the Partner for AI & Automation at Bain in California.

My purpose for building this content series is the following - to try and provide some clarity for strategy consultants as to how AI is impacting them - how the audience they serve is changing & how their internal processes are adapting.

Ted Shelton very kindly offered us the opportunity to try and clarify some key topics & use-cases - with some key findings below:

Go to market strategy:

Question 1i) How do you envisage Generative AIs impact on GTM, top line & growth strategy ?

When it comes to sales-led go-to-market strategies, GAI presents exciting opportunities. At Bain, we are actively engaged in what we call "sales co-pilot" projects. These projects involve developing AI assistants that support sales professionals by reducing administrative work, improving sales processes and messaging, and even helping to develop solutions and answers to customer questions. For example, GAI can analyse call recordings, convert them to text, summarise key points, and even draft personalised follow-up emails. In the case of complex product catalogues, GAI can leverage customer needs to suggest the right combinations or bundles, accompanied by persuasive explanations of their suitability.

Question 1ii: Which industries do you consider most likely to lean heavily into AI for customer communications & go to market ?

The adoption of AI for go-to-market communication is not limited to specific industries. While different industries may have varying needs and focuses, the potential for leveraging AI in customer communication is vast across the board.

Question 1iii: Are there other use-cases for GAI in go-to-market strategy?

Generative AI enhances various aspects of go-to-market strategy. For instance, in customer journey mapping, human research is still crucial to discover the paths customers follow. However, Generative AI can assist in formatting the research output into readable documents, improving team collaboration and alignment.

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Private Equity & Value Creation:

Question 2i: How do you envisage / see the PE industry viewing generative AI ?

PE firms are keenly interested in the potential of Generative AI. They are exploring opportunities for performance improvement, such as cost reduction and increased quality. Furthermore, they are evaluating how Generative AI will shape the products and services that companies provide to customers. Questions surrounding tech "moats" and potential erosion, the impact on value propositions, and changing customer expectations are also being pondered.

Early adopters of Generative AI who thoughtfully apply it to improve efficiency, quality, and feature/functionality will likely experience a substantial "first mover advantage." These companies are expected to see increasing valuations as they outpace competitors in leveraging the power of Generative AI.

Question 2ii: Do you envisage AI adoption being a factor in CDD or DDD (digital due diligence)

In short, yes - Investors & acquisitive businesses will begin to assess an organisations digital & AI maturity as part of the CDD process.

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Operational Efficiencies, Csuite & broader stakeholder considerations

Question 3i: What are some of the more interesting examples of efficiencies being driven by GAI?

Generative AI is driving remarkable operational efficiencies, particularly in software development. Studies have shown significant productivity and quality improvements. For example, a study supervised by MIT revealed that developers using GitHub Copilot completed tasks 55% faster.

Question 3ii: What are some of the considerations, related to operational efficiencies, the Csuite should be considering ?

When considering Generative AI to drive efficiency, the C-suite should focus on three key areas: understanding the size and shape of the opportunity, adapting the organisation to leverage these new technologies, and ensuring employees are supported in adapting to these changes through effective communication, education, and career paths.

Question 3iii: What considerations should business leaders have, related to stakeholder management around GAI?

Communicating about Generative AI adoption to the workforce requires conveying the message that the jobs of the future will be those where employees effectively leverage technology to improve efficiency and quality. Embracing technology skills is essential for future job security and competitiveness. The continued increase in wealth and quality of life relies on continuous productivity improvement, with Generative AI being the next step in this ongoing journey.

Question 3iv: What other considerations are there when overseeing a GAI transformation programme?

When overseeing a Generative AI transformation program, it is crucial not to dismiss challenges as insurmountable. Recognise that technology is evolving rapidly, and problems that seem unsolvable today may find solutions tomorrow. Embrace the exponential nature of change, as what once took ten years may now take only five.

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Ted Shelton is the author of the Infinite Future newsletter, where he publishes regular insights on the world of AI. We're extremely grateful for his input !

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