The rapid emergence of artificial intelligence (AI) is poised to fundamentally transform nearly every industry and function of business. Yet, with transformation comes challenges. Many leaders are grappling with how to harness AI’s potential while mitigating risks. As we embark on this unprecedented journey, the establishment of key principles becomes vital. Below, we outline eight foundational AI principles that should serve as the guiding light for business leaders.
1. ENTERING THE CHASM
We are on the cusp of the biggest business and social revolution in the past 100 years: an artificial intelligence enhanced world. The impact of AI on society will be similar to that of electricity. It will provide the biggest wealth creation opportunity of our lifetime for industries, businesses and individuals.
- Understanding the Impact: Leaders must recognize AI as a transformative force that requires proactive engagement.
- Strategic Alignment: Aligning business goals with AI adoption ensures readiness to leverage opportunities across industries and individual pursuits.
2. CHANGE AT THE SPEED OF LIGHT
Innovation in the artificial intelligence space is moving at the speed of light—in specific, generative AI. If we compare OpenAI’s GPT3 to a Blackberry, we will have an LLM comparable to an iPhone 14 within 18 months. For example, GPT3.5 performed in the bottom 10% when taken the Bar Exam. GPT4 performed in the top 10%
- Embracing Innovation: Businesses must stay updated on AI developments and adapt to changes swiftly.
- Strategic Agility: Implementing a flexible approach to AI adoption ensures that an organization stays competitive and leverages cutting-edge technologies.
3. LEAD FROM WITHIN
We are on the cusp of the biggest business and social revolution in the past 100 years: an artificial intelligence enhanced world. The impact of AI on society will be similar to that of electricity. It will provide the biggest wealth creation opportunity of our lifetime for industries, businesses and individuals.
- Education and Involvement: Leaders should immerse themselves in AI knowledge, understanding its implications for growth and efficiency.
- Integration in Business Strategy: Aligning AI strategies with business functions, such as budgeting or HR, ensures a cohesive and well-guided transformation.
4. DON’T PUT LIPSTICK ON A PIG
The disruption of deploying one-off AI solutions could outweigh their benefit; businesses should focus on building an enterprise-wide AI ecosystem. The same way that building a website doesn’t make the enterprise digital, simply using ChatGPT will not make it AI driven.
- Holistic Approach: Rather than deploying one-off solutions, focus on an enterprise-wide AI ecosystem that aligns with the overall business strategy.
- Avoiding Superficiality: Integrating AI into the core of the business, not just as an add-on, ensures that the technology serves as a true catalyst for growth and innovation.
5. DATA AND TECH ARE JUST A MEAN TO AN END
The disruption of deploying one-off AI solutions could outweigh their benefit; businesses should focus on building an enterprise-wide AI ecosystem. The same way that building a website doesn’t make the enterprise digital, simply using ChatGPT will not make it AI driven.
- Alignment with Mission: Technology and data should be harnessed to serve broader business goals.
- Business-First Approach: Leaders should identify where AI can enhance the existing business structure, ensuring that technology remains a tool, not a driver.
6. AI TECHNOLOGIES AS LEGO BLOCKS
Choosing a full-stack AI solution from technology vendor will not give the enterprise the nimbleness required to keep with the rapid changes in the AI spaces. Rather than choosing single platform solutions from big tech companies, enterprises should build a composable AI technology stack.
- Composable Technology Stack: Building an adaptable AI technology stack, much like Lego blocks, allows for continuous updates and replacements.
- Vendor Independence: This approach ensures that the organization can adapt and innovate without being constrained by a single vendor’s roadmap.
7. MACHINES WILL NOT REPLACE HUMANS
Saying that AI and machines will replace humans is not entirely accurate. Rather, humans with machines will outperform humans without machines and enterprises that embrace AI will outcompete enterprises that do not.
- Collaboration Over Competition: Emphasize how AI can enhance human abilities, fostering productivity and better decision-making.
- Human-Centric Approach: Understanding that AI and human collaboration lead to greater success reinforces a balanced and efficient organizational structure.
8. AI IS A SPECTRUM
In business, AI is a spectrum that goes from simple automation to advanced artificial intelligence. The application of AI technologies across this spectrum can only be done in partnership with humans where the informing, decision-making and execution of business tasks can be done by either AI or humans—depending on use cases..
- Diverse Application: Recognize the multifaceted nature of AI and its application across various business tasks.
- Human-AI Synergy: The interplay between human judgment and AI capabilities ensures a more nuanced and effective approach to business challenges.
The AI revolution holds incredible promise but also presents complex challenges. By embracing these eight principles, leaders can guide their organizations through AI integration with a focus on business needs, adaptability, and human-centricity. This strategic approach maximizes benefits and minimizes risks, providing a robust foundation for leveraging AI to transform organizations. However, success in AI adoption demands continuous learning and adaptation, particularly as capabilities rapidly evolve. The responsibility of implementing AI wisely is substantial, and adhering to these pragmatic principles will be key to unlocking AI’s vast opportunities.
