Artificial Intelligence is one of the biggest innovations of the century. It has given new life to business strategies, production processes, and development. A report from McKinsey stated that the GDP from AI will reach a whopping $13 trillion by 2030, with major contributions from Industries like Agriculture, manufacturing, energy, education, or logistics.
How can you mobilize an organization toward adopting AI innovation?
Filtering through the AI hype
Adopting AI innovations across the organization can be very challenging. Given so many AI products and services are introduced in the market and overly hyped, it doesn’t mean everyone is using them. It also doesn’t mean that they all are fit for your business.
Management must focus on the type of AI innovation that fits its business process and benefits them. They must plan to adopt and study its implications carefully. Undertaking pilot projects, starting at a very small scale, or taking a single process in the account, for AI is advised.
How to Pilot AI projects
To begin with, the organization’s executives must carefully analyze the business process and study AI projects that can be implemented. The best way to do it is by tailoring AI innovation to meet business requirements and creating a unique pilot project for the business. It is imperative to undertake such projects to study their impact and returns and foresee futuristic development.
- The pilot projects ( one or more) must be for a short duration and reflect results soon. It would help analysts to understand and streamline the process that can be effectively automated.
- The AI pilot project doesn’t have to be very extensive or overly size. Try starting on small projects that can reflect results soon to the stakeholders. Thus helping in gaining the confidence of Stakeholders on AI innovations.
- Choose industry-specific AI projects. It would help the stakeholders have more faith in your insight into the projects.
- If building an in house AI team is time-consuming try working out with outside partners. It would get you going faster, helping you in analyzing the potential of early AI implementations
- The Pilot project must create or add value. The AI innovation can add value in three ways; reduced cost, increase in revenue or diversification ( process/line/product).
Digitalization and AI
Companies that have already been digitized are at a lead. Adopting to AI without having a digital transformation is like taking a deep plunge without knowing where to dive. A study shows that companies who have already adopted digitization (Management Information system, ML in decision making, using digital platform for communication of or extraction of data within and outside the company) are likely to make 50% more profit using AI.
Change is inevitable and necessary!
When it comes to adopting AI innovation the biggest hurdle is the people and process of a company. It is here that change management players a crucial role. The leaders of the organization must decide wisely what process and human effort they want to automate.
A roadmap for embedding AI in organizations
- Focus on the AI development Strategies for business
- Using the learning curve and maturity ladder educate People to adopt the change
- Automate operational Processes gradually
- Data Technology is the core for AI and digitalization is the base
Optimizing processes using data-driven insight and technology gives Management more time for important issues and better control over each process, enabling improved efficiency and an increase in profits.