Are we looking at “GenAI Transformation”?

Yesterday, I had the opportunity and pleasure to present to a group of supply chain professionals of ISM Chicago on the topics of “Metaverse and GenAI” on logistics and supply chain. It is great to be able to do this remote from anywhere in the world - in my case from Lisbon.?And gladly, the feedback was very positive.

I spoke about the Metaverse, Generative AI and how both are growing together as well as our CHAMP model.?

But the main focus was on the impact of GenAI on how we work.?

I suggested making the topic one of the top priorities for 2024 as a leader, and to talk about GenAI Transformation.?

Why this and is that just a new version or variant of “Digital Transformation”??

Let me share some thoughts today, and please share your views too.?

Some of the content is based on a recent article by PWC (https://www.pwc.com/us/en/tech-effect/ai-analytics/generative-ai-transformation-for-your-business.html)

Let’s address a few core areas.?

Functional Transformation: GenAI as a Catalyst for Business Process Reimagining

At the heart of GenAI Transformation is the fundamental shift in how business processes operate. Unlike traditional automation tools, AI is not just about efficiency; it's about reimagination. It's about analyzing data at an unprecedented scale to inform decision-making, akin to having a supercharged consultant at your service. Imagine customer service not just responding to needs but predicting them, offering personalized solutions that heighten customer satisfaction and loyalty. This is not merely an upgrade; it's a complete overhaul of operational ethos.

Responsible AI: Ethics and Trust in the (Gen)AI Era

As we embrace GenAI's transformative power, we must not forget its ethical implications. This was a topic on the session yesterday as well where the audience asked a few questions around this topic.?

Responsible AI is about ensuring fairness, transparency, and accountability. In sectors like healthcare and finance, where AI's impact is deeply personal, maintaining public trust is paramount. This involves rigorous measures to prevent biases and respect privacy. The question is, can AI be both a powerhouse and a paragon of virtue? This balance is crucial in the GenAI era.

One of the points I made was: “In the near future, you do not know if something is as it looks like.” The quality and amount of fake “everything” is going to be a huge challenge.?

Workforce Upskilling: Preparing Humans for an AI-Driven Future

GenAI Transformation requires significant workforce upskilling. This is evident in various studies and reports, and I shared some of that before. There is still a long way to go.?

It's not just about machines getting smarter; it's about humans growing alongside them. Employees need to be trained in (Gen)AI literacy, data interpretation, and augmented decision-making. This upskilling is a dual investment – in technology and in human potential, ensuring that the workforce is not just AI-ready but AI-savvy.

Again, coming back to yesterday, one of the questions was about the key skills going forward. My response was that we both need soft-skills like empathy, negotiation, critical thinking, etc. AND digital skills like GenAI and others.?

Cloud and Data Modernization: The Backbone of AI Effectiveness

The unsung hero of AI effectiveness is often the infrastructure that supports it. Modernizing data infrastructure by transitioning to the cloud is no longer optional; it's essential. This move ensures scalability, security, and accessibility. Clean, well-organized data is the lifeblood of AI systems, enabling them to deliver precise and efficient outputs. In this light, cloud and data modernization is not just a step but a leap towards a fully realized AI capability.

This is to some extent also true for GenAI. GenAI can already be used in various ways in customer service, marketing and sales but also any other task that requires “writing” or “structuring”. Here the data requirements are a lot lower.?But the full potential also requires "data homework".

Exploring New Business Models: The GenAI-Powered Frontier

Lastly, GenAI Transformation is not just about changing how we do business, but what business we do. (Gen)AI opens up new possibilities – personalized products, dynamic pricing, predictive maintenance. This is where creativity meets technology. Companies must explore these new models to stay ahead in an ever-evolving market. This may involve unique partnerships and collaborations, fostering an ecosystem where AI is not just a tool but a partner in innovation.

A keyword here is mass personalization. GenAI opens complete new opportunities as you can tailor responses and even (digital) products individually to each customer.

Digital Transformation vs. GenAI Transformation: A Paradigm Shift or a Harmonious Coexistence?

So, do we replace 'Digital Transformation' with 'GenAI Transformation'? Perhaps it's not a replacement but an evolution or an additional perspective. Digital Transformation laid the groundwork (a work that is still ongoing). It digitized the analog, connected the disconnected. GenAI Transformation takes this digital framework and elevates it – making it smarter, more intuitive, and more predictive. It's a journey from digitization to cognitization.

I would say that GenAI Transformation is not just a buzzword; it's a multifaceted revolution that redefines business processes, ethics, workforce dynamics, infrastructure, and business models. It's about building an intelligent, ethical, and adaptable business landscape. And in this journey, the synergy between human ingenuity and AI's capabilities will be the linchpin of success.

Most companies are still in the midst of their “Digital Transformation”. And that needs to continue. In addition, there needs to be a “stream” or “program” which addresses this new field of Generative AI.?

That is why one of my other recommendation yesterday was to appoint someone responsible for the topic in a team or an organization. That is the only way to really move things forward. It requires top management support.?

And of course, it helps to work with companies who can help to get started and get moving.?

Wishing you a wonderful weekend.?

Michael

P.S.: As always, your thoughts and insights are very welcome. Share your perspective on GenAI Transformation in the comments below or reach out directly. Let's keep the conversation going!

And Subscribe** to "Beyond the Buzzwords" if you have not yet.