In a world where businesses are striving to harness the power of artificial intelligence (AI), many are falling into the same pitfalls—much like an awkward first date. Struggling companies often push the limits too far, attempting too many initiatives while neglecting a crucial truth: real success with AI comes from fundamentally transforming how people work, not merely deploying flashy AI models or large language systems. This insight was shared by Sylvain Duranton, Senior Partner and global leader of BCG X—the tech build and design division of the Boston Consulting Group.
The Current State: Companies in AI Dilemma
The frustration among companies is palpable. A recent survey conducted by BCG, which included nearly 1,800 C-suite executives from around 20 countries, reveals a stark contrast: while 75% of respondents identified AI as a top priority, only 25% reported experiencing significant value from their efforts.
Shifting the Focus: Quality Over Quantity
According to Duranton, the key to unlocking value lies in prioritizing focus over breadth. “Companies shouldn’t aim to do everything at once,” he advises. The scope of impactful change can’t be tackled with countless superficial use cases.
Instead, Duranton urges businesses to concentrate on a select few initiatives that hold true significance. For instance, in the retail sector, optimizing the product mix for specific locations can empower stores to better compete with both local and online options. Retail CEOs are acutely aware of the stakes; a failure to excel can lead to dire consequences.
A Strategic AI Agenda
Additionally, creating an AI agent to assist customers during their shopping experience can foster loyalty, making it difficult for customers to even consider switching to rivals. “With these two strategies, you create both a strategic agenda and an AI agenda,” Duranton explains, emphasizing the need to align inventory management and AI integration.
To put this into practice, businesses must commit to Duranton’s recommended allocation model: about 10% of resources toward algorithms, 20% towards data and technology, and a hefty 70% concentrated on transforming the workforce itself.
Navigating the AI Bermuda Triangle
The journey of scaling AI is fraught with challenges, particularly when it comes to balancing cost, quality, and speed. “Companies often find themselves in a kind of Bermuda Triangle: either outcomes are costly with good performance, or compromises must be made on one front or another,” Duranton notes.
While impressive tech demonstrations may captivate initial interest, the real challenge lies in managing millions of daily requests and delivering timely, relevant results. “It’s a completely different ballgame,” he emphasizes.
Investing in Change Management
Ultimately, success in AI isn’t solely about technology; it’s also about people. “Investing in change management rather than just technology is crucial,” says Duranton. Empowering strong and fearless leadership to drive these changes is also vital for successful implementation.
In conclusion, as companies venture into the realm of AI, it’s essential to shift focus away from an overwhelming number of projects and instead concentrate on transformative initiatives. By aligning strategic objectives with technological advancement, businesses stand a stronger chance of reaping the rewards that AI has to offer. The question is not “which model to use,” but rather, “how can we effectively integrate this technology to drive measurable value?”
