AI leadership series recommendations for boards and CEOs
The AI budget should not be a side project; it should feature in the financial plans of every business unit. This is a commitment that pays off in both the short and the long term.
This is a summary of our recent talks with leading AI practitioners about the prospects of AI and what C-level and boards should do in order not to be left behind.
We have summarised the current recommendations for getting on the AI train.
Why every boardroom needs AI on its agenda now
The digital transformation wave has touched nearly every industry, but few innovations have the potential for transformative power as artificial intelligence (AI) does. Several practitioners mention that AI has transitioned from an operational efficiency technology to real revenue uptake, which captures the zeitgeist in a technology that adds new functions and knowledge quarterly.
Embrace education over hype
It is tempting to jump on the latest technological bandwagon, especially when competitors are raving about their AI achievements. But understanding the nuances of AI – what can and cannot be achieved using it– is paramount. This knowledge will prevent costly mistakes and keep companies from getting sidelined.
Start small; think big
The best approach to integrating AI is often to start small. It may take longer but integrating AI into every fibre of the business ensures that it becomes a valuable tool rather than a costly distraction. This integration offers companies a competitive edge, enabling them to outpace even nimble newcomers to the market.
This is a change management journey like many other transformations: It is 10 per cent AI tech, 30 per cent platform tech and 60 per cent organisational change management.
Foster cross-functional collaboration
Several practitioners point out the importance of merging industry expertise with data science acumen. AI is not just the realm of tech experts; it needs the input of those who understand the business intricacies.
Recognise the organisational impact
AI is not just a technology; it is a change agent. Companies must prepare for a shift that is 10 per cent AI tech, 30 per cent platform tech and 60 per cent organisational change management and learn how to work with AI. Ignoring the human side of the AI equation may lead to resistance, misunderstandings and failed implementations.
Stay ahead of regulations
With the EU taking steps towards AI and data regulations, companies need to be proactive. Being reactive in this space may mean huge compliance costs and potential business disruptions. Boards must be vigilant and ensure they understand the implications of these evolving regulations on their businesses.
The best combination is industry subject matter experts and data science people; no one can get this to work alone, and it is key with cross-functional collaboration.
Trust, ethical AI and oversight
As AI systems make more decisions, understanding the basis for those decisions becomes crucial. Boards must ensure there is a system in place to audit and understand AI decisions. Ethical considerations, particularly around data use, will play a significant role in consumer trust going forward.
The AI budget should not be a side project; it should feature in the financial plans of every business unit. This is a commitment that pays off in both the short and the long term.
In conclusion, as several practitioners so aptly encapsulates, navigating the AI landscape requires strong leadership from the top. Boards cannot afford to sideline AI; they need to embrace it, understand it and leverage it. The future is already here, and it is powered by AI. Make sure your boardroom is prepared.
As the opportunities and risks of AI technology grow, boards and CEOs who have not yet started must plan how they will oversee movements in this new technology domain.
If you would like to discuss the themes in this article or your organisational needs, please get in touch with us here or via your local Odgers Berndtson contact.
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