An AI-first strategy starts with culture. As I wrote about previously, a successful pivot to embrace an AI-first strategy is one that strives to empower people to do their best work, creates the blueprint for strategic growth and operates within a framework of ethics and compliance.
The legendary founder and CEO Morris Chang of TSMC famously said, “Without strategy, execution is aimless. Without execution, strategy is useless.” But in my experience, this sentiment needs to go one step further because, without culture, everything is pointless.
Culture enables transformation.
Transformation is fueled by AI.
And AI needs culture.
Think of it like a three-legged stool-the elements are so carefully balanced that if you take one leg away, the whole thing is likely to collapse.
Fostering an AI culture is a crucial foundational step on which to grow your future success. According to 2018 research from Boston Consulting Group (BCG), organizations that focused on culture were five times more likely to achieve breakthrough performance in transformation when compared to organizations that neglected culture. But the challenge remains that as a still relatively unknown technology, the mere mention of “AI” can breed nervousness in an organization.
So, how do you start to create a culture that enables transformation and fuels AI?
Despite the explosion in generative AI over the last year, 2023 data from BCG shows just 14% of frontline employees have received training on it. When you invest in cultivating AI literacy in the workplace, it breeds confidence in employees because they know how to adapt to the new tools, systems and processes, which are all essential to delivering AI strategy.
Furthermore, once literate, employees become attuned to spot the opportunities and risks that AI presents so they can act sooner. When coupled with a “fail-fast” mentality, where employees are encouraged to experiment, it can lead to a first-mover advantage to keep organizations one step ahead of their competitors.
In my experience, the number one factor that underpins culture is trust. But despite all the benefits AI has to offer, many employees are still wary about fully engaging with the technology. Research from KPMG suggests this lack of trust is largely due to a lack of education, with 85% of employees actively wanting to learn more about AI.
As stated at the beginning, an AI-first strategy seeks to empower people. Within the context of culture, we need to help employees overcome their cognitive dissonance-the internal struggle we feel when we’re asked to do something that doesn’t align with our personal beliefs.
Through training programs, employees can be educated to have a clear understanding of what AI is, what it can/can’t do and how it could support them day-to-day. Then, through incentive and recognition platforms, employees can be rewarded for demonstrating the right behaviors, like open-mindedness, experimentation and continuous learning.
The data value chain describes the process from data creation through to using data to generate value-and its possible reuse. By understanding the end-to-end value chain, it’s possible to identify where AI can improve and optimize both the customer and employee experiences.
AI exists to support, rather than replace employees. And industry estimates show nearly three-quarters of manual tasks could be automated with AI, which frees people to work on more strategic tasks or innovations that result in greater value. According to McKinsey, the productivity gains realized through AI automation alone could total $4.4 trillion annually.
Responsible AI implementation requires several factors to come together in a unified response.
Technology is just one critical success factor during business transformation. Equal importance is finding and developing the right people within the right cultural framework who can use AI to drive successful transformation.
AI won’t change your organizational culture, but if you lack a strong cultural foundation, it can derail an AI implementation. Therefore, to ensure your business is change-ready, shine a spotlight on your existing culture and identify areas for improvement before embarking on your AI-first strategy.
The views and opinions expressed in this publication are entirely those of the author and do not necessarily represent the views of any company, board, or institution with which the author is associated.
This article by Partha Gopalakrishnan was first published on forbes.com by Forbes Business Council on Aug 16, 2024.