CEOs across every industry are intensely focused on how and where to use AI to drive value across their organizations. I hear this in the conversations I have with business leaders and can see it in the data from the AlixPartners Disruption Index, where CEOs identify AI as their top business opportunity.
But we also know that most AI initiatives fail – over 80% by our estimates. They do so for a number of reasons: lack of alignment with business goals, poor use case selection, cultural impediments, and failure of execution. Many CEOs just do not know where to start. If they do, they are unsure how to operationalize their vision or how to measure effectiveness.
In our experience, creating value from AI requires alignment and focus across three critical areas: 1) strategy; 2) the road map of execution; and 3) the foundational pillars.
First you must focus on the right business problem and align your AI investments to your strategic goals. Only by focusing on the right business problems can you ensure that you will create value for your enterprise from any AI initiative.
Second is execution. Your strategic vision is only as good as your ability to deploy it and achieve business results. A road map to successful execution is critical for realizing AI's potential.
And third, none of this is possible without the proper foundations. That means getting the right people, technological and operational ecosystem, risk management infrastructure, and (perhaps most critically) data in place in order to effectively execute on your AI initiatives. But like many things, do not let the perfect be the enemy of the good. Your data and other critical foundational assets may be up to the task at hand. Let an expert help you evaluate them if you are unsure.
To help CEOs (and other senior business leaders) navigate this landscape, our AI and Data Practice Group, led by Hoyoung Pak and Angela Zutavern , have developed a playbook providing more detailed and practical advice on how to approach your AI investments. Reach out to me or them to learn more.
Like most CEOs, I am optimistic about the impact of AI on our business and that of our clients. However, we must stay focused on practical business use cases and effective execution to ensure our AI investments create value for our customers and our shareholders.
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