This article was originally published by FastCompany.
It’s the most disruptive technology since the introduction of the internet. It’s being discussed from newsrooms to boardrooms. Every vendor that comes knocking on your door is talking about it. It has the potential for so much good, but without adequate oversight, it’s equally poised to create challenges. I’m talking, of course, about artificial intelligence (AI) and its many forms.
So how can executives, who are already trying to navigate through disruption at all levels —economic uncertainty, changing data legislation, increased customer expectations—realize the value and avoid the pitfalls? Let’s begin with a common language and understanding.
THE AI BASICS—IT’S ULTIMATELY ABOUT VALUE
AI is part of the broader field of computer science focused on replicating, automating, and expediting the creative and decision-making processes humans possess. Essentially, how can machines help us be more productive and gain more insights?
Machine Learning (ML), Natural Language Processing (NLP), and the latest advancements, Large Language Models (LLM) and Generative AI (GenAI), are all aimed at these challenges. Recently, GenAI solutions have been the hot topic—from ChatGPT and Google’s Bard to the current iteration of Microsoft’s Bing. These are advanced statistical tools that quickly analyze large amounts of data to find patterns and learn how objects and words fit together, subsequently creating potentially new content and insights. GenAI can produce a wide variety of content, including text, code, audio, and video.
While it’s easy to be enamored with the technology—and I’d highly encourage everyone to take the time to play and explore—the leaders who will be most successful with integrating AI into their business models are those who focus on the potential value AI enables. In marketing, for example, there must always be a value exchange between people and brands—when people share their data and time with a brand, the brand must in turn deliver value back to the customer, whether through enhanced customer experiences, financial value, or unique engagements. Likewise, when a business invests in AI, that AI must deliver value back to the business and not simply become a novelty or distraction.
WHERE TO START USING AI IN DAY-TO-DAY BUSINESS OPERATIONS
While AI is not labor free—infrastructure costs can be high, and it takes time to learn and implement—it can impact your bottom line: for example, researching information and synthesizing it or creating first-draft work from scratch. When AI works for a brand, people are freed up to do the human thinking, be creative and disruptive, and focus on important and strategic work to grow their businesses.
When looking at where to utilize AI, there are three key areas to consider:
1. Increased efficiency and productivity
Consider how AI can help automate repetitive tasks, streamline workflows, and expedite production. While the efficiency and productivity benefits are numerous, they must also be compared to and balanced against the value of current approaches—i.e., just because it’s possible doesn’t mean it’s the right decision for the business. It’s important to weigh the benefits against the risks, including creating a roadmap of where today’s AI investments pay off in the present and the future.
2. Advanced decision making
The power of AI is less about the insights it derives and more about the decisioning it enables. With the ability to analyze large data sets at speed, faster time from data to insights is possible. Faster insights should lead to faster decisions and actions, as insights without action are just information on the shelf—interesting, but not helpful. As AI learns over time, predictions will become more reliable.
3. Enhanced customer experiences
People expect better and more personalized customer experiences. In recent research from Acxiom, 70% of shoppers want their online experiences personalized. Great personalization is data-driven. When a brand has a strong data foundation and gives AI access to enterprise-wide data sets, AI can help deliver consistent and rapid support, not only virtually through technology-enabled assistants but also by empowering front-line employees with actionable insights that drive positive interactions. In an increasingly global market, AI can help with content localization and communications preferences.
RESPONSIBILITIES TO CONSIDER WHEN EMBARKING ON AN AI JOURNEY
AI is disruptive and will impact businesses globally, so it’s imperative for leaders to understand not just how these advancements will affect their companies but how to manage adoption in ways that benefit everyone—customers, employees, and shareholders.
AI is fueled by data, and that means there’s no room for bad data or data practices. Look at traditional data practices and remember compliance and transparency on AI decisions are still essential. Clean, permissioned data free from bias is paramount. While data is foundational to business, it’s also foundational to society. In many ways, data is a modern form of infrastructure. And like infrastructure, requires regulation.
However, regulation always lags behind technology, which is not new or surprising—it’s hard to regulate what doesn’t exist. We’re in an era of unprecedented change, not simply because of the changes, but because of the speed at which the changes are happening. Businesses are in a position of power, and that power needs to be used for the good of all society. The regulatory landscape is sure to evolve, but ahead of those changes, brands should be looking to do the right thing—being transparent about their data collection and use, including how it’s utilized in AI.
TRANSFORMATION CAN BE POSITIVE—BUT IT’S UP TO ALL OF US
Learning and adopting transformational AI can positively impact multiple areas of business, and it’s just getting started. But it’s up to all leaders to consider not only how they can use AI to benefit growth, but how they use it to build better relationships with their customers. The AI revolution is going to require flexibility and a bit of trial and error. At the heart of it all, AI is simply a tool that is only valuable if it creates value for everyone.
This article was originally published by FastCompany.
