Generative AI (GAI) has become a highly sought-after technology for businesses, with the potential to add $4.4tn to the global economy, according to McKinsey. However, there is a risk that companies may invest in GAI without fully understanding how it can align with their business goals. The field of GAI is rapidly evolving, with new approaches, methods, and applications emerging. Yet, our understanding of how GAI can deliver business value is not progressing at the same pace.
To avoid GAI becoming a solution in search of a problem, business leaders need to enhance their knowledge of the technology before applying it to their tasks. By understanding the advantages and disadvantages of GAI, coupled with their existing knowledge of business operations, leaders can identify suitable challenges to explore. It is important to note that GAI is not a cure-all, but it can be incredibly powerful when applied to the right problem. Additionally, while the democratization of technology is beneficial, companies should not blindly adopt GAI without considering how it can future-proof their business.
GAI has the potential to be one of the most significant investments for businesses in the coming years. To ensure a return on investment and determine if GAI is worth the time and money, leaders should follow a few key steps. Firstly, they must strike a balance between understanding what holds genuine business value and considering the potential returns from implementing new solutions. It is crucial to recognize that GAI has limitations and still requires human oversight. While it can perform impressive tasks, its intelligence is learned and requires teaching through data.
Gaining knowledge about GAI is an ongoing journey, as the field continues to develop. Decision-makers should start with a basic understanding of how GAI can be applied to their business. With this foundation, leaders can ensure that GAI applications solve real-world business problems. Use cases should be targeted where there is a clear opportunity to improve and measure outcomes, such as lowering barriers to entry or enhancing efficiency.
Leaders should also be cautious of operating expenses associated with GAI. While the technology may feel new, existing systems can work well in specific use cases. It is important to avoid investing in new technologies that deliver the same outcomes at inflated costs. Businesses should use GAI to sharpen their competitive edge rather than replacing their existing services.
Microsoft's approach to GAI serves as a good example. By integrating GAI into Office, Microsoft has improved the user experience and lowered barriers to use. This demonstrates how GAI can be harnessed to enhance a company's unique selling points, rather than replacing them.
Business leaders should adopt a scientific approach to GAI deployment, embracing the concept of 'failing fast.' By quickly determining whether a particular approach will work or not, companies can save time and resources. Instead of aiming for a moonshot from the start, businesses should focus on incremental advances based on initial quick wins and abandon avenues that do not deliver quick returns.
Lastly, executive sponsorship is crucial for successful GAI deployment. Business leaders must be committed to embracing change at an organizational level and ensure that objective measurement processes are embedded. It is essential to keep the company mission in sight throughout the GAI journey.
As GAI continues to advance, it is important for businesses to focus on their strengths rather than relying solely on third-party platforms that may quickly become outdated. By following these steps, businesses can ride the GAI wave without being overwhelmed by it.
