We are witnessing a soaring growth of artificial intelligence (AI) integration into business operations, with McKinsey reporting that companies using the technology in at least one function jumped from 55% to 72% between 2023 and 2024, but how can business leaders become more AI-savvy? To prepare for this transformation, businesses have intensified their focus on […]
We are witnessing a soaring growth of artificial intelligence (AI) integration into business operations, with McKinsey reporting that companies using the technology in at least one function jumped from 55% to 72% between 2023 and 2024, but how can business leaders become more AI-savvy?
To prepare for this transformation, businesses have intensified their focus on data practices in the last few years, but being data-savvy is merely the beginning. Many organisations are trapped under the impression that data-smart is the end game for AI implementation, as opposed to a stepping stone.
This is inhibiting AI’s full transformative potential as some businesses tend to settle when they feel they are competent with data. In reality, it is a precursor and further evolution is needed to become what I call ‘AI-savvy’. This demands a comprehensive understanding of AI’s abilities as well as its limitations, and a culture of continuous learning and experimentation driven by leadership teams.
Lay the data foundations
Not all data-savvy organisations are AI-savvy, but an AI-savvy organisation must be data-savvy. Before a company can harness AI effectively, it needs data tooling that supports accuracy, quality and rigorous governance. This lays the foundations for new and evolving AI capabilities.
For organisations building real-time AI applications, for example, this has proved a particular challenge. Transitioning towards live data architectures is essential to support models capable of continuous learning and the most accurate outputs.
The future of AI systems is in real-time, so organisations need to start managing their data with that in mind now, or they will have to replatform further down the line.
Understanding the realities of AI
Often, we see organisations leaping into investments in the latest AI advancements without properly considering if the tools they are implementing genuinely align with their operational needs. There’s a fine line between visionary adoption of advanced tools to enhance operations and falling into the trap of inflated expectations. A disconnect currently exists between what organisations want AI to achieve and what it can actually do. Sometimes, identifying when not to use a sledgehammer to crack a nut is the mark of true AI savviness.
Transformation projects also need to be viewed through a discerning strategic lens when considering whether to buy or build. Custom systems have their advantages but can be prohibitively expensive to build and maintain, especially as the AI landscape keeps on evolving. An AI-savvy business knows when the promises of tailored capabilities don’t outweigh the cost and when off-the-shelf solutions can deliver the required functionality.
Building a pro-AI culture
The transition from data-savvy to AI-savvy cannot happen without a change in cultural and leadership frameworks. AI adoption thrives in organisations with strong, decisive leadership and an adaptive, flexible company culture. Fostering an environment where AI initiatives are not viewed as purely experimental projects but are ingrained as facets of daily operations is a responsibility that falls to C-suite executives.
Leadership must be proactive with implementation decisions and filter AI-savviness down from the top. Making incorrect decisions used to be the biggest risk to executives (just take the old IT adage that “nobody gets fired for buying IBM”), but now, inaction can jeopardise leadership positions just as significantly.
Employee buy-in is also pivotal; without it, AI tools risk obsolescence regardless of their sophistication or efficiency. To secure and retain employee buy-in, leaders must ensure that the tools they are providing employees always offer up-to-date and accurate outputs to prevent the disenchantment that occurs when staff are presented with incorrect information by so-called intelligent systems. Empowering users with real-time, contextually accurate information enhances productivity and builds trust in AI.
Educate to innovate
Investment in AI is futile without comprehensive education and training programmes. Without the skills to leverage AI resources effectively, there is limited value in providing access to them at all. When employees feel empowered with the knowledge to use the tools, they can experiment in an informed way and explore what AI savviness uniquely means to them within the context of their role and company culture.
From data-savvy to AI-savvy
In essence, being AI-savvy is resisting the allure of the next great technological leap by cultivating a culture that promotes learning and considered procurement and implementation. It’s about blending strategic foresight, robust data practices and a pro-AI culture that encourages creativity and innovation.
Being data-savvy is a stage setter. Now, organisations must set their sights on becoming AI-savvy to successfully ride the next wave of technological innovation.
