Article

Imagining a future of Gen AI

Name: Implement Consulting Group
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How do we pioneer the future business landscape radically changed by AI?

Published

20 September 2024

AI will reshape our businesses, society and the world at large. And as this development unfolds, we find ourselves grappling with profound questions about the future. Gen AI will fundamentally change the way we look at competitiveness – but can we even imagine how? Can we envision the new business models, operating models and strategies that will emerge as Gen AI continues to evolve? And as companies, do we dare to position ourselves to capitalise on these opportunities?

Gen AI will fundamentally change the way we look at competitiveness

Gen AI is fundamentally reshaping the playing field and the level of competitiveness. It enables businesses to leverage data-driven insights, automate complex processes and create personalised customer experiences at scale.

While some companies may find their traditional advantages eroded, Gen AI offers unprecedented opportunities for innovation and growth. Faster decision-making, optimised operations and agile responses are now within reach. Small and medium-sized enterprises can now compete on a more equal footing, challenging the dominance of large corporations.

As a result, the traditional sources of competitive advantage are evolving, with agility, innovation and data becoming the new cornerstones of success. Imagine the perspective of predictive analytics, where Gen AI algorithms can forecast market trends and consumer behaviour with remarkable accuracy, faster and more accurately than any team of analysts has done in the past. This allows businesses to stay ahead of the curve.

The theme of productivity transformation and operational cost reduction through Gen AI speaks for itself: research shows that 40% of working hours will be impacted by Gen AI, 40% productivity gains in written tasks and 15% quality improvement in written tasks.

Source : Zhang et al., MIT, 2023

In addition, the impact of Gen AI on customer engagement cannot be overstated. Imagine the higher conversion rates and improved customer loyalty we can achieve through personalised marketing and customer service. In operations and supply chain management, Gen AI is predicted to significantly improve just-in-time inventory practices, reduce waste and increase profitability.

Source : Implement Consulting Group survey (2023)

The rise of new business models: a long-term Gen AI strategy

New groundbreaking Gen AI applications and imaginative use cases are being introduced on a daily basis. Technology is developing exponentially. Adoption rates are soaring.

But we need to put the current enthusiasm and widespread applications in business into a strategic perspective. At the end of the day, Gen AI is a technology; and to unleash its truly transformative potential, strategic choice-making is needed.

To realise the full potential of Gen AI, we need compelling opportunities, deep strategic thinking and decisive resource allocation. We need to be courageous and let bottom-up experimentation go hand in hand with a top-down strategic view to make the right choices for the future.

These choices may involve the emergence of innovative business models, such as AI-as-a-Service (AIaaS), hyper-personalisation and platform-based ecosystems. To capitalise on these opportunities, companies will need to adopt a long-term Gen AI strategy that integrates technology, people and processes.

We anticipate that companies are likely to adopt AIaaS to access sophisticated capabilities without significant upfront investments in infrastructure, enabling even smaller companies to compete effectively. Hyper-personalisation will allow businesses to offer customised products and services that are tailored to individual customer preferences in real time, increasing customer loyalty and conversion rates. And platform-based ecosystems, where businesses collaborate and share Gen AI-driven insights and resources, will drive innovation and create network effects that amplify competitive advantages.

To seize these opportunities, companies must dare to invest in data infrastructure, foster a culture of innovation, form strategic partnerships and embrace the AI flywheel, which posits that leveraging data to improve models leads to better products, attracting more customers and generating more data in a virtuous cycle.

AI-generated image of a flywheel using Midjourney

In addition, businesses should integrate Gen AI into their strategic planning processes to identify potential disruptions and new market opportunities early.

Insights from industry leaders, from large multinational pharma companies to small local niche players, who have successfully navigated the Gen AI landscape, can provide valuable guidance and demonstrate best practice. For example, imaginative industry leaders have launched everything from Gen AI assistant tools to improve the efficiency and quality of document handling and streamline day-to-day tasks and reports, to global Gen AI skills development programmes to improve employee productivity.

More on AI?

We are at the early stages of AI’s transformative potential on business, society and the future as a whole. But can we imagine where we are heading, and do we even dare? This is the challenge we want to overcome.

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