In the ever-evolving landscape of technology, some organizations stand out as trailblazers, harnessing the transformative potential of Generative Artificial Intelligence (Gen AI) to propel themselves ahead of the curve. The results of a recent survey conducted in mid-April 2023 unveil a riveting narrative of these leading companies, showcasing their strategies, priorities, and the profound impact of Gen AI on their operations.
The Rise of AI High Performers
A distinctive cohort has emerged from the survey—the AI high performers. These are organizations where AI contributes a substantial portion of Earnings Before Interest and Taxes (EBIT), accounting for at least 20 percent in 2022. For these high performers, Gen AI is not just a passing trend; it’s a strategic imperative that they have seamlessly woven into their operations.
These AI high performers are setting the pace, venturing into both Gen AI and more traditional AI capabilities with unparalleled zeal. They are pushing the boundaries of Gen AI adoption, particularly in domains like product and service development, as well as risk and supply chain management. These companies leverage Gen AI in ways that transcend mere cost reduction; their objectives are driven by a visionary approach to harnessing new business opportunities and enhancing the value of existing offerings through AI-driven features.
Diverse Business Functions Alight with Gen AI
As AI high performers champion the cause of Gen AI, their influence radiates across multiple business functions. They recognize that the transformative potential of Gen AI extends beyond any one domain. By embracing Gen AI in product and service development, they optimize product cycles, infuse novel features into existing offerings, and even pave the way for entirely new AI-based products. Risk modeling and HR functions also become fertile grounds for Gen AI integration, fostering strategic decision-making and enhancing workforce optimization.
Unleashing Resources for AI Transformation
These high-performing organizations are not averse to investing in AI. In fact, they outpace their peers when it comes to allocating resources for AI endeavors. The survey indicates that AI high performers are more than five times more likely than other organizations to allocate over 20 percent of their digital budgets to AI. They weave AI capabilities extensively across their operations, adopting AI in four or more business functions and embedding a diverse range of AI capabilities, such as knowledge graphs, alongside Gen AI.
Navigating the Challenges of AI Adoption
While AI high performers lead the charge, their journey is not without its challenges. Their struggles are of a more advanced nature, often revolving around the nuanced intricacies of AI. The high performers are predominantly concerned with model management and tools, encompassing aspects like monitoring model performance and retraining models over time. These challenges arise from a level of AI maturity that distinguishes them from organizations still grappling with fundamental strategic elements of AI adoption.
Mastering the Art of Machine-Learning Operations
Even amidst their pioneering efforts, AI high performers are yet to completely master AI best practices, including Machine-Learning Operations (MLOps) approaches. While they exhibit a greater inclination towards assembling existing components rather than reinventing the wheel, their adoption of specialized MLOps technologies remains a work in progress. These technologies are pivotal for deploying transformative Gen AI use cases securely and effectively.
Evolution of AI Talent Landscape
The survey findings unveil an evolving landscape of AI-related talent needs. Over the past year, roles such as data engineers, machine learning engineers, and AI data scientists have been prominent among the hires made by organizations pursuing AI ambitions. Interestingly, AI-related software engineers, once the most sought-after role, have seen a dip in demand. The emergence of roles in prompt engineering underscores the growing significance of this skill set in tandem with Gen AI adoption.
Reskilling the Workforce for the Future
The impact of AI on the workforce is palpable, with reskilling taking center stage. As organizations anticipate the next three years, a reskilling revolution is on the horizon. Rather than separation, the prevailing sentiment is that more employees will undergo reskilling to adapt to the evolving landscape. AI high performers stand out as proactive leaders in this aspect, envisioning substantial reskilling efforts to align their workforce with the demands of the AI era.
Gen AI’s Workforce Footprint
Delving into Gen AI’s expected impact, the survey results reveal a unique pattern. While most functions anticipate growth in their workforce, service operations is the outlier, with a projected decrease in workforce size. This is a reflection of Gen AI’s unique ability to enhance specific operational aspects without necessarily replacing entire roles.
Charting the Future with Gen AI
In this ever-evolving saga of AI adoption, AI high performers emerge as the torchbearers of change, setting new benchmarks and reshaping industries. Their strategic outlook, bold objectives, and dedication to leveraging AI capabilities are driving a paradigm shift in the way organizations perceive and deploy technology. As Gen AI continues to mature, it is these pioneering organizations that will steer industries toward a future marked by innovation, value creation, and sustainable growth.
Author: Rayna Calica
English