6 things high-achieving orgs do to wring real value from AI
What makes an organization an AI leader? Demonstrating success in one of two pursuits.
Either the org has a.) developed cutting-edge AI capabilities and is already using them to consistently generate substantial value. Or it has b.) put an AI strategy in place and is starting to generate value from the effort.
Combined, those two groups comprise 26% of the field in a recent survey of 1,000 organizations around the world. The “a” group was just 4%, the “b” group the other 22%.
The remaining 74% “have yet to show tangible value from their use of AI,” write the authors of the survey report. “These categorical distinctions are important because leaders far outperform the others.”
The report was authored by 12 subject matter experts at Boston Consulting Group, aka BCG, which also commissioned the survey. The authors name six things that AI leaders “do differently.” These are:
1. They focus on core business processes as well as support functions.
“A common misconception is that AI’s value lies mainly in streamlining operations and reducing costs in support functions,” the authors learned via the survey. “In fact, its greatest value lies in core business processes, where leaders are generating 62% of the value.” More:
‘Leveraging AI in both core business and support functions gives these companies competitive advantage.’
2. They are more ambitious.
Three-quarters of the most forward-looking companies “focus on company-level innovation core to the business,” BCG reports. By contrast, only 10% of other companies do so—“and if they leverage AI at all, it is mainly for productivity.” More:
‘Leaders make twice the investment in digital, twice the people allocation and twice the number of AI solutions scaled.’
3. They invest strategically in a few high-priority opportunities to scale and maximize AI’s value.
Data on AI adoption shows that leaders pursue, on average, only about half as many opportunities as their less advanced peers, the authors write. “Leaders focus on the most promising initiatives,” they add, “and they expect more than twice the ROI in 2024 that other companies do.” More:
‘In addition, leaders successfully scale more than twice as many AI products and services across their organizations.’
4. They integrate AI in efforts both to lower costs and to generate revenue.
“Almost 45% of leaders integrate AI in their cost transformation efforts across functions, compared with only 10% of non-leaders,” BCG found.
‘More than a third of leaders focus on revenue generation from AI, compared with only a quarter of other companies.’
5. They direct their efforts more toward people and processes than toward technology and algorithms.
Leaders follow the rule of putting 10% of their resources into algorithms, 20% into technology and data and 70% into people and processes, the authors write. More:
‘Our data shows these are the key capabilities underpinning success.’
6. They have moved quickly to focus on GenAI.
Leaders use both predictive AI and GenAI, and they are faster in adopting GenAI, the authors share. This is key, they note, because:
‘GenAI opens opportunities in content creation, qualitative reasoning, and connecting other tools and platforms.’
Dave P. has worked in journalism, marketing and public relations for more than 30 years, frequently concentrating on hospitals, healthcare technology and Catholic communications. He has also specialized in fundraising communications, ghostwriting for CEOs of local, national and global charities, nonprofits and foundations.