Technology has been developing at an exponential pace since the 1960s, but recent developments in artificial intelligence have sent shockwaves through the business world. AI promises to transform the future of business with productivity gains, deeper insights and automated workflows. Unfortunately, this Brave New World of work is also fraught with risk. AI systems can develop biases, spread false information and contribute to data leaks, so it’s vital to maintain a level of human oversight.
There’s another danger of AI that doesn’t make the headlines, but which poses a threat to every business that introduces this new tech: 70% of digital transformations fail. This means that, for most firms, the incorporation of AI will lead to huge losses in time, resources, and money.
We know that AI has the potential to revolutionise every business – but simply focusing on the technology alone will not work. To successfully harness the power of AI we believe it is fundamental to look at three core components of the operating model: capabilities, roles and culture.
Benefits of AI in the workplace
AI is the ability of digital machines to perform the tasks we’d typically associate with the human mind. It acquires new knowledge, data and skills through machine learning and deep learning. This intelligence can then be utilised by people to make better decisions – which gives them more time for creativity and complex problem-solving.
The benefits of AI to the world of work cannot be ignored, with the potential to save time and money. When put to the right task, AI is leaps and bounds ahead of the human mind. Here’s how it can help your workplace:
- It’s available 24/7. Artificial intelligence brings a whole new meaning to the term ‘full-time work’. It remains productive around the clock and doesn’t get bored of repetitive tasks.
- It reduces margin of error. When programmed correctly, AI will make no mistakes. This means that your organisation’s results will be more accurate.
- It frees up people to do what they do best. Whilst AI handles monotonous tasks such as data entry, the human minds have more time to focus on what really matters.
- It can be used to keep people safe. AI programmed robots can operate in environments that pose a threat to human life, such as mining and construction.
- It accelerates decision-making. AI can process huge amounts of data in very short time frames. This data can be quickly applied to predictions, leading to faster decision-making.
Building AI into your business operations
In this age of rapidly developing technology, businesses must evolve or die. But it’s about more than just asking your IT team and hoping for the best – most digital transformations fail, which means firms must be careful about how they adapt to this new technology. AI can help businesses to thrive if they take the time to build this transformation into their operating model. There are three core ways to do this:
Capabilities
AI may be smart, but it isn’t smart enough to embed itself into your business without some helping (human) hands. Teams must of course be equipped with the technical skills required to implement and manage AI, and to identify the ways it can elevate the business, but this alone is not enough.
Humans bring a creativity, curiosity and emotional intelligence that cannot be replicated by machines. These uniquely human traits are critical to business innovation, improvement, competitive advantage, and maintaining relationships. These capabilities must be nurtured and combined with AI to enable better decision-making.
Roles
The implementation of AI means that roles need to be constructed differently. Hybrid roles that combine human skills with artificial intelligence need to be created. Make the most of this symbiotic relationship by first identifying which of your processes need people, and which can be left to the machines.
These ‘people’ tasks can then be grouped to create meaningful and interesting roles – something firms must strive towards in today’s employee-driven job market. This will help foster an atmosphere of personal development and career progression.
Culture
Don’t underestimate the shift in organisational culture that AI will require. People must learn to work in partnership with machines, not just alongside them. Organisations who fail to embed this new culture will miss out on the benefits that they expect to see. Embedding AI effectively requires a movement towards more agile ways of working, innovation, and a culture of ownership.
Artificial intelligence is also a source of fear for many workers, and understandably so. A report by Goldman Sachs predicts that AI could replace 300 million jobs. It is of vital importance to foster a culture of trust amongst your people to mitigate fear and resistance to new technology.
Who can benefit from AI integration
For many industries, AI has the ability to revolutionise business operations. ‘Office and administrative support’ is at the top of the list, closely followed by ‘Legal’. The developments in Legal are particularly exciting: artificial intelligence is expected to be able to automate processes such as contract analysis and even anticipate court case outcomes.
Financial services firms are also expected to reap the rewards of automation. AI-modelled trading now accounts for three quarters of financial market volume, meanwhile JP Morgan Chase are investing $12 billion per year in their tech teams and became the first major bank to introduce an AI-powered virtual assistant for corporate clients.
AI is also set to revolutionise the insurance sector, which already utilises powerful technology for distribution and underwriting. Machine learning could reduce levels of insurance fraud by flagging suspicious claims early in the process, saving time and money.
The bottom line
You can try and implement AI without changing your operating model, but you’re probably going to waste a lot of money. Artificial intelligence is a powerful tool, but your operating model is the key that unlocks its potential. Maximise your tech by maximising your people: develop capabilities, roles and culture to see real results.
To learn more about the ‘how’ of incorporating AI into your operating model or to explore how you can enhance capabilities and define roles, drop us a line.
Schedule a call 20-minute call with one of our directors here, and we’ll be happy to have a chat.
This article was written by By Liz Hirst, Senior Director at Wharton Business Consulting
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