Do you have an "early days" generative AI strategy?
Generative AI is rapidly advancing and has the potential to transform industries. Some organisations have been struggling to keep up with the pace and potential they see in generative AI, whilst leaders who are ‘early adopters’ in leveraging generative AI are capturing value and pulling ahead.
We are seeing these leaders tackling a number of critical generative AI priorities:
Navigating the tension between the need for prudence and risk mitigation, and the importance of moving quickly to benefit from emerging opportunities
Aligning new generative AI with existing digital and AI strategies
Encouraging experimentation across organisations, with a focus on identifying use cases that can scale
Looking strategically at options for productivity gains
Considering the impacts on workers to both prepare employees to take advantage of the new tools available and include employees in shaping the company’s generative AI journey
Learning that collaborating with ecosystems can be a truly transformative route to a radical rethink of value chains and business models
Organisations at the forefront of generative AI adoption have addressed six key priorities to set the stage for success.
- Priority 1
- Priority 2
- Priority 3
- Priority 4
- Priority 5
- Priority 6
Priority 1
Manage the generative AI risk/reward tug-of-war:
It is crucial to establish clear guidelines and regulations ensuring responsible and ethical use of generative AI. Companies may experience a tug-of-war between the executives and managers seeking to rapidly tap the potential of generative AI for competitive advantage and the technical, legal, and other function leaders striving to mitigate potential risks. Achieving a healthy tension often starts with a framework and safeguards for adopting generative AI responsibly. Open-minded, agile leadership is critical: risk-minded leaders deliver better, faster guidance on generative AI.
Priority 2
Align your generative AI strategy with your digital strategy (and vice versa):
If you can align your generative AI strategy with your overall digital approach, the benefits can be enormous. By integrating generative AI into broader digital strategy, organisations can leverage and enhance existing processes, improve decision-making, and create personalised experiences. Connecting digital and generative AI strategies helps avoid siloed efforts and ensures a cohesive approach to accelerate digital value creation.
Priority 3
Experiment with an eye for scaling:
Generative AI scaling is critical yet challenging for companies hoping to reap the full benefits due to the diverse range of potential applications and the need for senior leadership engagement. Experimentation and active involvement from employees can identify potential uses for this technology and generate value. Companies should share learnings from pilot projects across functions and departments so the wider organisation can benefit. Collaboration to recognise patterns in processes can lead to broader adoption. Leaders must also assess and fill any skills gaps to succeed with generative AI at scale.
Priority 4
Develop a productivity plan:
Generative AI has the potential to increase productivity by automating repetitive tasks and generating new approaches. A productivity plan can identify areas where generative AI can streamline processes, improve efficiency, and free up human resources for more complex and creative tasks. Consider the relative importance of speed, quality, and cost improvements in the context of the time horizon you are solving for.
Priority 5
Put people at the heart of your generative AI strategy:
Most workers aren’t sure what generative AI means for them and this can create concern. Consider the impacts on your workforce and involve employees to ensure your organisation is positioned to capitalise on the positive promise of generative AI. Engage your people on the benefits of generative AI early and regularly - share how it can enhance their jobs and skills. Customised training and upskilling programmes can address skills gaps and highlight opportunities for career growth. Promoting a growth mindset will encourage employees to try new things, share their learnings and foster innovation. Provide clear guidelines on the ethical use of generative AI and measure the impact through key performance indicators.
Priority 6
Work with your ecosystem to unlock even bigger benefits:
Do you know how your suppliers, service providers, customers, and other partners are planning to leverage generative AI to improve their service proposition and experience? What implications does their use of generative AI have for your own strategy? Will it impose new conditions and demands? Collaboration with external partners on generative AI may unlock new opportunities for your organisation.
Generative AI holds immense potential to transform industries, but organisations need to navigate the landscape strategically. By focusing on the six priorities outlined, organisations can unlock the full benefits. As this technology continues to evolve, organisations must stay agile, adapt to changing landscapes, and embrace generative AI as a catalyst for business innovation and growth.
To read the full analysis, please visit https://www.pwc.com/gx/en/issues/technology/early-days-generative-ai-strategy.html
