Let me begin by stating the obvious — AI is here and affecting each of us in ways we may not even be aware of, whether we like it or not. The old Fram Oil Filter ad warned us, “You can pay me now or pay me later. The choice is yours.” This slogan was built on the concept that, one way or another, you would end up paying for a service. The difference would be in time and cost. The question with AI is not about now or later. Rather, it is already happening “now,” and the costs are to be determined by your situation. The fundamental question at the outset is what you really need to do to prepare your company for what’s next. Our goal is to give you a place to start with a consensus from those who have walked the walk already.
Looking Past the Dazzle
With the onslaught of information (some relevant and some not) hitting us from every angle, it is tough to know what to do and when to do it.
Research shows that most businesses can benefit from some form of AI by using it to create better products and services, drive efficiency in their operations or improve customer experience. Putting aside potential benefits, not all AI initiatives businesses embark on provide good results.
According to research by Harvard Business School, around 80% of commercial AI projects fail to generate tangible value. Too many are mesmerized by AI and think in terms of a shiny solution in search of a problem.
The failure of many AI projects can be traced back to a lack of proper due diligence and planning, or as Benjamin Franklin once said, “A failure to plan is planning to fail.”
This begs the question of what you need to understand before you flip the switch on the “shiny” aspect of AI.
Using AI Effectively
You should begin with having a clear and concise business plan and strategy in place with targets and goals. Only then will you identify opportunities where AI might help you achieve them.
Think in terms of problems or challenges first, and then how AI can be used as a tool and solution.
To ascertain your need for AI, you need to identify specific business problems that AI could potentially solve. The following is a macro-view compilation on what to look at internally to get started.
Identify Problems and Opportunities
- Pain Points: Look for repetitive tasks, high error rates, bottlenecks or areas with high manual effort.
- Customer Experience: Look at where AI can personalize experiences, improve response times or offer better self-service.
- Strategic Goals: Determine how AI can help achieve broader objectives, such as increasing sales, reducing churn or entering new markets.
Assess Readiness and Data
- Data Status: Evaluate if you have sufficient, high-quality and accessible data (structured or unstructured) for AI inclusion.
- Infrastructure: Check if your IT systems, cloud capacity and hardware can support AI tools.
- Culture and Skills: Gauge employees’ willingness to adopt new AI tools and if you have or can acquire the talent.
Pilot and Measure
- Start Small: Begin with pilot projects to test the waters.
- Define Metrics (KPIs): Track specific indicators like efficiency, cost savings, revenue, customer satisfaction, adoption and the Time to Achieve Value (TAV).
Align with Business Plan and Strategies
Ensure AI projects deliver tangible/measurable benefits that justify the investment. Keep in mind that AI is in its infancy of understanding its value and applications. It is changing as we speak.
As one AI insider noted, “We’re in the very early days of the AI revolution, and the tools available tomorrow will make today’s tools look like children’s playthings.”
Need for Continuous Refinement
Your AI solution is not one and done. Be aware and prepared. You need to remain plugged into AI innovations to gauge the efficiency gains that may be achieved from switching to new and updated tools, and offset those against the costs and upgrading challenges.
In sum, using AI effectively means continuously measuring progress, refining business and AI strategies in tandem, as well as iteratively improving models and processes as organizations continue to evolve.
Alan C. Brawn, CTS, DSCE, DSDE, DSNE, DCME, DSSP, ISF-C, is principal of Brawn Consulting.
