McKinsey has estimated that the savings a company can make using generative artificial intelligence (GenAI) for operations are in the region of $1.4 trillion to $2.6 trillion. That’s savings across key business areas such as customer service, back-office functions, the supply chain, and research and development (R&D). GenAI is also, according to the World Economic Forum (WEF), moving at such a pace that it is becoming increasingly easy to access its potential and apply this within a business.
GenAI can help companies obtain the intelligent flex they need to refine their processes and workflows. New tools offer scalable skill sets for automation, refining products, using data more cohesively, improving decision-making with accessible analytics, and empowering people to program their systems to suit their roles. I believe the potential - the "why" - of investing in this technology is not in question. Instead, let's focus on the issue challenging many business leaders: the "how" of implementing GenAI successfully across operations.
The WEF’s analysis on the benefits of GenAI in operations doesn’t take long to move to the challenges that come with its implementation. This technology can be expensive and complex. So how can companies integrate GenAI solutions into their architecture in a way that allows them the benefits and the scale without the cost?
The WEF says it’s a trade-off. Meanwhile, McKinsey has found that these concerns, among others, are slowing companies down. Only 11% of companies globally are using GenAI at scale, and only 3% of those surveyed have scaled a GenAI use case in operations. In addition to cost, many companies are also uncertain as to how they can get measurable value from their GenAI investments and whether or not it will give them a competitive advantage.
Another common worry is whether or not they'll have access to talent that will ensure they can use their GenAI to their advantage. Where is the investment going? What value will significant investment deliver over the long and the short term? And will it genuinely improve operations for the business?
While there’s no definitive answer to those questions, there are case studies that show exactly what GenAI can do to operations and how this can translate into better business. For example, research has found that companies prioritizing customer-focused GenAI use cases can potentially see an increase of around 25% in revenue over a period of five years.
Of course, there’s no absolutely proven road to success, but companies that are bold in their GenAI approaches are seeing dividends. And this boldness comes down to understanding where GenAI fits in your business within a clearly defined road map that aligns to your business strategy.
For example, Beyond 12, a nonprofit organization focused on education and empowerment for young people, has implemented an AI coach to help students learn more effectively. Other companies such as Salesforce, Babson College and Arizona State University are also exploring how they can use GenAI to reimagine education.
GenAI has immense potential within the online learning environment, as it can help create solutions that adapt to different user needs, levels and ages. I believe that entering the GenAI landscape will allow for companies to explore the extent of their education imagination. What can you create with GenAI that could redefine learning or empower students to achieve so much more?
It's in answering questions like these - but framed for your business - that GenAI needs to show its value.
My company's recent acquisition of a GenAI solution was a smart move for us because it sat directly on the road to our future. We planned for it and knew that adopting this technology was essential to ensuring we could align our operations to product innovation. The challenge for many companies, however, is understanding where to start with GenAI.
The first step is knowing where your money should sit when it comes to investing in a GenAI solution that will deliver measurable value. This means taking the conversation back to strategy. What does your company need? To establish how GenAI can benefit your business and add value across workflows, information access, and achieving relevant outcomes, start with a value-first audit. This involves mapping your existing workflows to identify high-friction, time-intensive processes and then prioritizing areas where GenAI can augment human capabilities.
Another way forward is to build structured testing programs. Designate specific teams or departments as AI innovation pods where you can balance AI investment against clear metrics such as time saved or employee productivity in the real world. Use the data from these pods to refine your implementation strategy.
It's also important to develop clear AI governance guidelines that allow you to establish protocols for data security and usage. This should help ensure your GenAI usage remains within ethical governance and trust frameworks. For us, I believe prioritizing GenAI is essential to maintaining our strategic focus as a completely remote organization that wants to constantly revisit and reimagine our solutions and services, as well as our teamwork and collaboration, while ensuring people remain at the heart of our business.
Ultimately, GenAI doesn’t have to be a massive investment into intensely complex solutions; it can instead be an iterative approach that intelligently enhances your operations on demand. The trick is to adopt a strategic mindset that allows you to embrace AI and integrate it into operations without getting lost in the hype and the noise. And getting that trick right means focus and prioritization.
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