Artificial intelligence is reshaping business—though not at the blistering pace many assume. The technologies that enable AI, like development platforms and vast processing power and data storage, are advancing rapidly and becoming increasingly affordable.

Despite one of the biggest mistakes leaders make is to view AI as a plug-and-play technology with immediate returns. Deciding to get a few projects up and running, they begin investing millions in data infrastructure, AI software tools, data expertise, and model development. Some of the pilots manage to eke out small gains in pockets of organizations. But then months or years pass without bringing the big wins executives expected. Firms struggle to move from the pilots to companywide programs and from a focus on discrete business problems, such as improved customer segmentation, to big business challenges, like optimizing the entire customer journey.

While cutting-edge technology and talent are certainly needed, it’s equally important to align a company’s culture, structure, and ways of working to support broad AI adoption. But at most businesses that aren’t born digital, traditional mindsets and ways of working run counter to those needed for AI.

To scale up AI, companies must make three shifts:

AI has the biggest impact when it’s developed by cross-functional teams with a mix of skills and perspectives. Having business and operational people work side by side with analytics experts will ensure that initiatives address broad organizational priorities, not just isolated business issues. Diverse teams can also think through the operational changes new applications may require—they’re likelier to recognize, say, that the introduction of an algorithm that predicts maintenance needs should be accompanied by an overhaul of maintenance workflows.

When AI is adopted broadly, employees up and down the hierarchy will augment their own judgment and intuition with algorithms’ recommendations to arrive at better answers than either humans or machines could reach on their own. But for this approach to work, people at all levels have to trust the algorithms’ suggestions and feel empowered to make decisions—and that means abandoning the traditional top-down approach. If employees have to consult a higher-up before taking action, that will inhibit the use of AI.

Organizations must shed the mindset that an idea needs to be fully baked or a business tool must have every bell and whistle before it’s deployed.  AI applications rarely have all their desired functionality. A test-and-learn mentality will reframe mistakes as a source of discoveries, reducing the fear of failure. Getting early user feedback and incorporating it into the next version will allow firms to correct minor issues before they become costly problems.

One thought on “Building the AI-Powered Organization

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