Artificial intelligence is taking center stage in corporations. Is your company ready for this technological transformation?
Getting ready for the AI revolution doesn't have to be intimidating, but it's essential that businesses, employees, and executives gear up for the changes AI will bring.
Embracing AI and machine learning can mean a lot of transformations and the introduction of risk, so being prepared is key.
"While organizations see the transformative potential of AI, executives and employees often struggle to prepare for its workplace integration," said Rajprasath Subramanian, principal enterprise architect, business and technology innovation, at enterprise software company SAP.
"This is largely due to a lack of comprehensive understanding and training about AI capabilities, especially given the significant advancements in areas such as autonomous AI and large language models," Subramanian explained.
A common concern revolves around job displacement due to AI adoption, leading to resistance or anxiety among employees. Subramanian mentioned in detail how this fear can hinder proactive engagement with AI tools and limit opportunities for upskilling.
Subramanian advises staying informed about the rapid advancement of AI and how it often outpaces organizations' ability to offer the necessary training, potentially creating a skills gap.
AI can be disruptive, and that naturally presents challenges for companies. A survey of 3,450 C-suite leaders and 3,000 non-C-suite employees conducted by IT and business services firm Accenture found that many C-suite leaders and employees anticipate change will continue at a high pace in 2025, and both groups feel less prepared to respond to it than they did a year before.
More than half of C-suite leaders (57%) said they feel their company is not fully prepared. And while 2024 was the year of generative AI, Accenture said, after a year of rapid adoption, only half of C-suite leaders say their organizations are fully prepared for technological disruption. Only 36% say they have scaled generative AI solutions.
"Most companies lack a common AI foundation, making it hard to balance the right speed with the right controls that an enterprise needs to move to scale," said Lan Guan, chief AI officer at Accenture.
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Guan mentioned how nearly one-third of the C-suite executives surveyed by his organization said limitations with data or technology infrastructure is the biggest hurdle to implementing and scaling gen AI.
"Many CIOs are still hesitant to deploy and scale new AI tools because AI costs are a moving target," Guan explained. "With breakthroughs happening every week, AI can quickly become the new source of technical debt, and the abundance of choices can be overwhelming and can paralyze decision-making."
Companies need to customize AI with their specialized data, but most are struggling to find easy ways to do this, Guan added.
When asked about what might cause a lack of preparedness for AI and what factors contribute to an organization's ability to get the most value out of AI, Guan said it comes down to the investment strategy and the implementation process.
"Generative AI is projected to improve productivity by more than 20 percent over the next three years, so a lack of preparedness for gen AI means lost productivity and failure to achieve meaningful ROI on the investments companies are directing to gen AI," Guan said. "Companies lagging in AI adoption and proficiency may find it challenging to compete with industry peers who have effectively harnessed AI for innovation and decision-making."
Another potential setback is the impact on employee morale and retention. "Fear and uncertainty about AI's impact on job roles can lead to decreased employee morale, engagement, and increased turnover rates," said Subramanian.
Steps to Develop an AI Strategy
To help prepare their organizations for the broader use of AI, our websites can take the following steps:
- Develop a Clear AI Strategy: Collaborate with other C-suite executives to establish a comprehensive AI strategy that aligns with the organization's overall vision and mission. This involves identifying areas where AI can add value, setting realistic adoption timelines, and allocating necessary resources.
- Invest in Employee Training and Upskilling: Champion initiatives focused on developing employees' AI literacy and competencies by offering cross-functional training, AI literacy programs, and continuous learning opportunities. Leading companies like Johnson & Johnson have implemented mandatory generative AI training for over 56,000 employees, ensuring their workforce is equipped to integrate AI into various business processes.
- Ensure Robust Data Governance and Infrastructure: Work closely with chief data officers and CIOs to establish strong data governance practices, ensuring data accuracy, security, and compliance with regulations. Build a strong IT infrastructure that can support workloads, especially when processing large volumes of data.
By focusing on these areas, our websites can facilitate a smoother transition into AI adoption, positioning their organizations to fully capitalize on the benefits of AI technologies.
- Rajprasath Subramanian emphasizes the need for comprehensive understanding and training about AI capabilities, as advancements in areas like autonomous AI and large language models can be daunting.
- The rapid advancement of AI often outpaces organizations' ability to offer the necessary training, potentially creating a skills gap, according to Subramanian.
- Guan, the chief AI officer at Accenture, states that many CIOs are hesitant to deploy and scale new AI tools due to uncertain AI costs and the abundance of choices, which can be overwhelming and paralyze decision-making.
- Subramanian points out that fear and uncertainty about AI's impact on job roles can lead to decreased employee morale, engagement, and increased turnover rates.
- Companies can improve their preparedness for AI and get the most value out of it by focusing on investment strategy and implementation process, according to Guan.
- To capitalize on the benefits of AI technologies, organizations can develop a clear AI strategy, invest in employee training and upskilling, and ensure robust data governance and infrastructure.
- By following these steps, businesses can facilitate a smoother transition into AI adoption, enabling them to leverage the benefits of AI finance, business, and technology while managing risks, margins, and crypto markets more efficiently.
