Don’t be fooled by the hype! “Leadership in the Loop” dives deep into why human leadership is essential for maximizing the impact of AI technology on business strategy. It also explores ways to accelerate AI research and its practical applications.
Highlights
About the Writers
Amir Hartman
Amir Hartman is the Managing Director at Dasteel Consulting. He is also the Director of AI Strategy Research Experience at Alliance and Fidere.ai. Amir has extensive experience in AI and strategic consulting. For instance, he has significantly advanced AI research and its practical applications. His leadership drives innovation and helps organizations leverage AI for strategic goals.
Venkataraman Lakshminarayanan
Venkataraman Lakshminarayanan has extensive tech industry experience. He is a Board Member at CRON AI. He previously served as ServiceNow Value Leader. His expertise includes AI and value-driven tech solutions. Thus, Venkataraman’s strategic vision and excellence have earned him respect in the tech community. He has contributed to the growth and success of many organizations.
What Are We Doing about AI?
The question echoing through the hallways in every organization is, “What are we doing about AI?”
Therefore, this question is posed to leaders at all levels, from the Board and C-suite, functional heads, employees wanting direction from leadership, and customers themselves.
AI POC Paralysis
Our research with the Experience Alliance reveals interesting preliminary insights: 74% of companies actively engage with AI technologies. Despite widespread engagement in diverse use cases, a significant hurdle remains. The majority find themselves stuck in what seems to be “POC paralysis,” a state where progressing from proof-of-concept (POC) stages to full-scale production deployments is elusive. In fact, this is supported by a recent study by Boston Consulting Group. The research reveals that 71% of companies are actively engaging in limited experimentation and small pilots.
Enterprises seem to follow three common approaches for AI adoption:
- Shadow AI: These are grassroots efforts, often initiated by individual departments or individuals without formal approval, integration, or support of the broader technology strategy. While they can drive efficiency and learning, they also pose risks. Our initial findings show that 30% of large organizations (those >$10B) have shadow AI. We think this number is low and finding from Salesforce indeed show that over 50% of workers using unapproved AI tools.
- Embedded AI: This involves the utilization of AI capabilities within existing systems or tools, such as ERP solutions or AI-enhanced applications like copilots. Embedded AI represents an accessible way for organizations to benefit from AI without extensive custom development.
- Sanctioned AI: Sanctioned AI efforts refer to AI initiatives that have received formal approval and support within the organization and include various applications and deployments across its operations.
Putting Shadow AI aside and studying the more intentional deployment of GenAI, we see organizations taking five strategic profiles to their AI deployments. Each of these five distinct profiles have unique approaches, goals, and impacts.
The Real Estate Metaphor
Moreover, in studying the landscape of AI deployment across organizations, we’ve observed approaches that can be likened to players in the real estate industry. These roles include Stager, Remodeler, Builder, Architect, and Syndicator.
Here is how each profile approaches the integration of AI into their operations.
Where do you start?
For many organizations choosing a path starting as a “Decorator/Stager” is not only acceptable – it may be a wise and necessary first step. These initial ventures into AI help organizations get a feel for the technology’s capabilities and secure early successes. However, while potentially beneficial, these first steps may not deliver a competitive advantage.
Leading companies are adopting multiple AI deployment profiles simultaneously, reflecting the complex nature of AI integration. AI deployment profiles are not set in stone, rather they can and do change over time. An effort might start with modest goals, like those of a “Decorator / Stager,” and then grow into more ambitious initiatives. This strategy allows them to explore various AI investments and adapt to the dynamic journey.
Navigating the five profiles
- Begin by clearly identifying your company’s main goals, priorities, and challenges. The critical question, “What problems are we trying to solve?” should steer the initial exploration into AI.
- Assess your organization’s readiness to adopt the varied profiles within the AI landscape. This evaluation is important for developing a roadmap that includes a mix of approaches. Additionally, it ranges from achieving quick wins to undertaking deep, transformative deployments.
- Understand that starting as a “Stager” or “Remodeler” offers a valuable introduction to AI. They allow you to understand AI’s potential without making significant changes. However, the goal should move beyond this phase, using AI to significantly improve your competitive position and materially improve the customer experience.
- Align key stakeholders before adopting more aggressive profiles so that they are ready to consume these AI initiatives, which require significant changes and capabilities.
- Lean into Builder, Architect, and Syndicator strategies, with an awareness that this is an ongoing journey versus an initiative. Adopt the forward-thinking approach of AI leaders who look beyond current challenges to future opportunities by asking, “What problems could we be solving for?”
The journey of AI adoption is as much about strategic foresight and organizational agility as it is about integrating innovative technology.
This brings us to the original question:
What are you doing about AI?
We’d love to hear your thoughts!
Original article can be found here.
