With the explosive popularity of ChatGPT, Generative AI – its underpinning technology – has emerged as a true inflection point for AI. The rapid and widespread adoption of powerful generative AI tools such as ChatGPT, Bard, Claude, and Midjourney has caught the attention of business leaders worldwide.
Forward-thinking organizations are already on the fast track to know about its business value and risks, and devise strategies to adopt this transformative technology.
The growth forecast for generative AI indicates that this is far from a mere fad. According to Polaris Market Research, the total market for Generative AI is predicted to be upwards of $200 billion by 2032. According to another study (Grand View Research), the global market for generative AI tools is expected to reach $109.37 billion by 2030, growing at a CAGR of 35.6% from 2023 to 2030. The reason behind this phenomenal growth is generative AI’s unprecedented accessibility and ease-of-use, improvements in machine learning algorithms, lower computing costs, and of course, massive availability of data.
This paradigm shift has pushed CEOs to reflect on how generative AI will impact their company and industry, and what strategic decisions will help them leverage opportunities and manage challenges.
Here are a few key points to consider when building a generative AI strategy:
Know Your Tactical Advantage
Generative AI has made this tech accessible for everyone. But while this democratization has increased productivity and reduced costs, it also means that these same tools and advantages are available to competitors as well.
To address this “downside” of democratization, CEOs and business leaders need to identify their unique use cases, and also choose the path of least resistance, at least initially. Look for use cases that are unique, low-risk, easy to implement, and which offer the greatest productivity boost across the organization. They can be from any point across the value chain – for example, integrating generative AI into customer engagement, augmenting R&D and summarizing documents, producing content etc.
Plan Your Investment
Considering the “newness” of gen AI, CEOs need to carefully assess the timing and scale of their investment. They must prepare and prime their business for it – invest in R&D, hire a partner that offers in-depth AI consulting and AI services, get active buy-in from all key stakeholders, and leverage institutional knowledge. Start small by piloting generative AI in a small, focused business area and figuring out what works and when/what to iterate. Due to the inherent propensity for errors in generative AI, it’s best to opt for use cases that can accommodate a certain degree of variability in their outputs compared to use cases that require extreme precision. Depending on the specifics of use cases, leaders also need to make strategic choices about whether to fine-tune existing language models (through prompt tuning and prefix learning), or train a custom model which although is a relatively extensive investment, yields deeper and more long-term impact.
Prepare and Enable Your Knowledge Workers
Knowledge workers, across diverse domains, play a critical role in driving innovation and growth within organizations. Under the guidance of a trusted AI consulting company, CEOs need to work with their leadership team and HR to redefine knowledge workers’ roles and responsibilities and adjust operating models accordingly. One smart approach is to break down a certain job/role into different sub-tasks, and identify which of them are human-intensive, which can be automated, augmented, and which are the new “novel” tasks. This is the new mix around which companies should redesign their workforce to extract maximum value, make informed decisions, and accelerate their digital transformation journey.
Protect Your Business
While experimentation should always be encouraged, on a strategic level, it’s important to put up guardrails and be aware of the risks that ad-hoc, awkward adoption of generative AI can bring. CEOs need to have policies and procedures in place, covering responsible use of AI, clearly-defined data ownership, and process to review content before it’s released. In addition, leaders also need to ensure protection of company and client proprietary data, and mechanisms to regularly update security protocols and policies.
Infusing generative AI in your business is a marathon, not a sprint – but it is a marathon that companies must embark on soon. Companies that don’t realize and embrace its disruptive potential will face an enormous cost and innovation disadvantage. As a trusted AI consulting partner, 10Pearls offers end-to-end AI consulting services, strategic guidance and support to businesses. We assess a business’ technical expertise, data architecture, operating models, risk management processes – and help decide whether to tweak, train or create custom language models. Our global team of AI consultants and engineers help organizations identify the right opportunities, empower knowledge workers, and drive tangible, long-term competitive advantage.
To explore how we can help you leverage generative AI, get in touch with us!