AI Value Secrets…
The Secrets of AI Value Creation explores the challenges of artificial intelligence value creation from a variety of valuable perspectives, encompassing business, technology, data, algorithmics, and psychology. The authors are careful to illustrate their points with concrete examples and suggest the key capabilities you’ll need to acquire to foster a conducive environment for successful AI value creation. The Secrets of AI Value Creation is essential reading for business executives, data, analytics and technology teams, entrepreneurs, and anyone keen on unlocking significant new ways of business growth through the application of artificial intelligence.
AI’s Value Creation Potential
AI Value Potential
AI’s anticipated impact on value creation remains substantial, with PwC projecting a potential contribution of $15.7 trillion to the global economy by 2030. But not just PcW, McKinsey estimates an annual global AI impact of $13 trillion. At an organizational level, AI’s influence is evident in the success of AI Achievers, attributing up to 30% or more of revenue to AI and 20% of EBIT. Many businesses seek to draw lessons from these AI Achievers to replicate their successes. However, there are various challenges on the way to get there.
The Factors of AI Value Creation
While numerous organizations commonly turn to industry use cases to derive value from AI, AI achievers have discovered a more effective approach by honing in on the right AI diamonds. Their unique emphasis on AI value drivers has enabled them to generate value in unparalleled ways. In this context, we will highlight the three most crucial value factors and offer examples illustrating how they can be applied to pinpoint high-value AI use cases for your organization.
Challenges of AI Value Creation
AI-Centric Elements
The intricate differences between AI’s value creation elements and traditional approaches pose a significant challenge. Many initiatives falter in understanding unique data characteristics, exploring new business opportunities, and recognizing the disparity between AI algorithms and conventional statistical methods. Moreover, successful AI implementation hinges on grasping stakeholders’ distinct motivation for leveraging AI.
Collecting Valuable Data
Large organizations face the daunting task of discovering relevant data amidst its sheer volume and distribution. A value framework the RODA approach (return on data assets) are discussed to put a value on data and guide its identification for AI use cases. These tools and approaches help organizations navigate data challenges and unlock AI potential.
Creating Actionable Insights
Creating accurate algorithms alone is insufficient for generating viable business opportunities. The focus shifts from insights to actionable outcomes that drive business results. We explore the crucial difference between insight and actionable insight, presenting various use cases, including a retailer’s success with AI in improving revenue growth. Various approaches of creating actionability get introduced and examples used to guid through implementation.
Creating Stakeholder Trust
The success of AI projects relies on building trust among stakeholders, including the organization, employees, and customers. Psychological research and examples from AI Achievers identify key dimensions for trust and how to support them. Case studies featuring industry giants like Google, Capital One, and IBM illustrate how these dimensions are leveraged to establish trust by addressing transparency, responsibility, and ethics.
Managing AI’s Decision Making
Organizations entering the realm of AI often underestimate the hidden risks associated with this technology. Challenges such as varied AI explainability methods, the influence of training context on algorithms, and the limitations of AI, including lack of generalizability, consistency, and decision scope, are often overlooked. Real-world examples, such as Zillow’s significant financial losses, highlight these risks. The provided guidelines and best practices emphasize various ways to overcome those pitfalls of AI value destruction.
Leading AI Enterprise Integration
Building an AI Strategy
Crafting a robust and executable AI strategy is a fundamental step in navigating the dynamic landscape of artificial intelligence. This process entails a comprehensive alignment of AI initiatives with business objectives, a meticulous identification of key focus areas, and the definition of required capabilities for seamless business implementation.
Managing AI Projects
In parallel, effective AI project management becomes the linchpin for the realization of these strategies. Successful AI project management involves the right project development approach, considering all relevant project steps, a focus on details and value creation challenges, and a clear stakeholder value orientation to create value with AI.
Leading Cultural Change
However, beyond the technological facets and structured processes, cultivating an AI-friendly culture within the organization is equally imperative in order to scale AI’s value creation potential. This cultural shift involves fostering an environment that not only embraces innovation but also encourages cross-functional collaboration and values continuous learning. By instilling the right mindset, organizations can foster a culture that maximizes the transformative potential of artificial intelligence.
Additional Book Material
The book is just the beginning of your AI value creation journey. We will provide you with additional material to successfully implement AI in your organization.
The Hidden Book Chapter
How can you prevent repetitive mistakes and foster organizational learning? This concealed chapter, Chapter 15, delves into this challenge and offers an approach to overcome it.
AI Value Creation Templates
How can you integrate the strategies and processes outlined in the book within your organization? AI management templates offer surveys, assessments, and workshop materials designed to help identify business opportunities, minimize adoption and feasibility risks, and facilitate the scaling of AI across your organization.
Visualizations for Presentations
You are tasked with discussing AI value creation, exploring the opportunities and challenges of an AI journey. We will equip you with a set of slides, statistics, and frameworks from the book to ensure the success of your presentation.