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After a few years of relatively stable technology, generative AI has taken the world by storm, with McKinsey predicting that any business without AI will be obsolete within the next three years.
AI-native businesses (businesses built with AI at their core) are already on the rise, and incumbents slow to implement change should take note: Generative AI will create a tipping point where AI-centric models will move forward at breakneck speed, while organizations still on the fence will be quickly left behind.
We saw how during the dot-com boom, Blockbuster didn't go digital on time and couldn't keep up with their digitally savvy customer base. The same thing happened with BlackBerry, who didn't introduce touch screen keyboards on time, turning a cutting edge device into a thing of the past. In both examples, it wasn't a lack of product updates, but rather the failure of the leadership team to drive business transformation on time.
While many companies are finally waking up, time is already running out for those still committed to AI. That's the bad news. The good news is that there is still time to course correct. Successful technology transformation starts with transforming business processes. It's all about your employees and how they work together. Given the right tools and space to contribute, your employees can quickly become change agents. And it's easy to do so.
Related: Why you should incorporate AI into your business and how to do it right
What is an AI-centric organization?
I see a confluence of two forces here: one is AI-native organizations — startups built with AI embedded in their infrastructure from day one, with automation and data at the forefront of their approach; the other is the rapid transformation of existing organizations into AI-centric organizations. To survive and thrive, more organizations will need to become AI-centric and make room to embrace AI as the central “glue” for their future operations and growth.
Of course, this transformation is a big challenge. Any operational change that affects every aspect of your business, from sales and customer service to finance and HR, is a painful process. But I believe the opportunity cost of not making this massive transformation is too great to ignore. If organizations want to remain competitive and relevant in the long term, they need to embrace AI. So the question is not whether to become an AI-centric organization, but how to get there.
Related: How to successfully implement AI in your business – Overcome challenges and build a future-ready team
Building an AI-centric organization
Create an open dialogue about AI.
People fear the unknown. When change happens and employees are the last to know, it creates a lot of anxiety and uncertainty. For example, a McKinsey study found that many change efforts fail because the goals are not tailored to the individual employees' jobs. Even more worrying, senior managers are 20% more likely than the rest of the workforce to believe that these goals are tailored, which creates a huge gap of misunderstanding between the two parties.
As you define your AI strategy and goals, you should involve intrapreneurs at all levels in your organization to consider how these changes will impact their individual roles. Encourage affected employees to communicate these changes. Create an open forum where employees can ask questions, voice concerns, and share best practices. While this type of active engagement may be unsettling and require help initially, it will surely pay off in the form of increased levels of innovation, adoption, and impact in the future.
Let's get everyone involved:
You need to think not only about letting people know what changes are happening (top-down), but also about how to include all employees in the process (bottom-up). Early McKinsey research showed that when employees feel actively involved in business change, they are much more likely to stick with it.
The best way to involve your employees is to ask them about use cases or tools they think could solve existing business problems. Another way is to create a “prompthon” – this will help you come up with new AI prompts while at the same time giving you much-needed insights into the quality of existing AI algorithms. Finally, get your team to test pilot solutions and provide feedback. For example, if your customer service team needs to learn how to work together with a new chatbot, collaborate with them to co-design it. Your employees are your best innovators and know your business processes best.
Experiment with AI-centric business models:
Watch the rapid change in both technology and new business models in the AI space. If you have a dedicated innovation team, work with them to experiment with AI-centric solutions. If you don't have one, now may be the time to create one because AI innovation won't wait.
In this context, we develop a layered approach for AI use cases, clear metrics and prioritization frameworks, and transformation maps for each business function. An AI-centric organization requires that data (and thus organizational knowledge) flow freely between business units and underlying platforms. While this may be a costly endeavor, it presents a golden opportunity to rethink and reinvent the entire business infrastructure. Think of it as moving from paper notes to email. It was a big leap, but today it is hard to imagine that organizations once relied solely on print and internal email.
Related: Ashton Kutcher warns companies to embrace AI or 'likely to go out of business'
The AI way or the highway?
As I work with executives across many industries, I find that many of them are subject to fear-mongering about AI. Business leaders feel increasingly pressured to adopt AI when they're not ready. Of course, this is the wrong approach. Poor AI adoption can be far more damaging than not adopting it in the first place. So, the first step is to make sure you focus on your business strategy.
But being complacent is not the answer either. If you don't have a clear strategy for how AI can improve your business, you need to make it a top priority. Consult with your employees to gather insights you wouldn't get any other way. And get to work. The clock is ticking, and companies using AI are already thriving in a competitive environment.
