why-ai-must-be-part-of-your-business-strategy

Why AI Must Be Part of Your Business Strategy

What is the difference between implementing a new ERP and artificial intelligence? In both cases, it’s about introducing a new technology into our organization. Why should AI be treated differently? Because this technology is disruptive and has the power to transform not only your organization but also your competitive landscape.

Artificial intelligence has the potential to transform your competitive landscape

Uber, Airbnb, Netflix, Amazon are examples of companies that have transformed their markets thanks to artificial intelligence. These exceptions will become more and more numerous with the democratization of this technology. 

Indeed, the availability of data, the increase in computing power, and the evolution of technologies such as voice and visual recognition open up a world of possibilities for your business, but also for your competitors.

Integrating artificial intelligence into your strategic planning

It is therefore essential to consider Artificial Intelligence in your business strategy.  

Here are some questions to stimulate your strategic discussions

  • How can AI transform your products or services?
  • What aspects of your business could benefit from increased automation or machine learning?
  • How could AI integrate with other emerging technologies you are investing in?
  • Do you have the computing power and infrastructure needed to support AI usage?
  • Do you have the digital skills and talent to move forward?
  • How will you gain the trust of your stakeholders when using AI?

The first step – establishing a common language

You don’t have answers to the previous questions? You’re not alone. Artificial intelligence encompasses many areas and technologies, and it can be difficult to navigate.

The first step is therefore to establish a common understanding of what artificial intelligence is within your executive committee. 

“When evaluating AI transformations that stall, we find that most issues hindering success can be attributed to insufficient planning and alignment. A lack of understanding within leadership during the strategic planning phase will inevitably lead to a confused execution of the business transformation.” – McKinsey

Ethical and legal considerations, a major issue

In addition to the strategic considerations discussed earlier, artificial intelligence carries numerous risks, as well as ethical and environmental considerations. It is essential to be informed about the issues faced by companies already using this technology, as well as the laws in force in the regions where you do business.

A chatbot is not a distinct entity

For example, did you know that you are responsible for the information provided by your chatbot, just as if it were shared on a page of your website? Here is an excerpt from the case law in the case of Air Canada, which was held responsible for reimbursing a customer following an error by its bot.

“Although a chatbot has an interactive component, it is only part of Air Canada’s website. It should be obvious to Air Canada that it is responsible for all the information on its website. Whether this information comes from a static page or a chatbot makes no difference.” – Christopher Rivers, Civil Resolution Tribunal member

Points of reflection for your strategic planning

In addition to educating yourself on the current regulations, you can now define what responsible AI means for your company. There are several groups and resources on the topic, including Confiance IA, the Montreal Declaration for Responsible AI, and many others.

Here are some questions to consider

  • How will you use the data collected by AI?
  • Have you considered cybersecurity risks and data privacy issues?
  • What measures will you put in place to ensure that the solution is free from bias?
  • What level of transparency do you need?
  • What is the environmental impact of the chosen solution? How will you incorporate it into your sustainability strategy?

Conclusion

As you can see, implementing artificial intelligence in business involves important strategic considerations. Whether or not you choose this path, it’s important to understand how this technology will impact your competitive landscape. We invite you to refer to our other articles to learn more about strategies for successfully integrating AI into your business.

Generative AI was used to optimize this article for SEO.

References

United States Artificial Intelligence Institute, Certified AI Transformation Leader training material, 2023.
McKinsey, Rewired to Outcompete, https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/rewired-to-outcompete, 2023.