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    IDC The Four Elements Your AI Strategy Needs To Succeed

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    The document outlines the four elements that an organization's AI strategy needs to succeed: 1. Align the strategy with strategic business goals like improving profits or reducing costs, not just technology goals. The strategy should identify tasks for AI to automate to achieve the goals. 2. Use rich, preferably exclusive data sets as the foundation for executing the strategy, as data provides competitive advantage where computing power and algorithms do not. 3. Consider updating business processes to integrate AI and support the strategy, as adding AI to just one part of a system won't help if other processes are still slow. 4. Include ethical considerations like eliminating bias, protecting data and control, to address risks from AI inheriting

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    IDC The Four Elements Your AI Strategy Needs To Succeed

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    The document outlines the four elements that an organization's AI strategy needs to succeed: 1. Align the strategy with strategic business goals like improving profits or reducing costs, not just technology goals. The strategy should identify tasks for AI to automate to achieve the goals. 2. Use rich, preferably exclusive data sets as the foundation for executing the strategy, as data provides competitive advantage where computing power and algorithms do not. 3. Consider updating business processes to integrate AI and support the strategy, as adding AI to just one part of a system won't help if other processes are still slow. 4. Include ethical considerations like eliminating bias, protecting data and control, to address risks from AI inheriting

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    IDC the Four Elements Your AI Strategy Needs to Succeed

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    The document outlines the four elements that an organization's AI strategy needs to succeed: 1. Align the strategy with strategic business goals like improving profits or reducing costs, not just technology goals. The strategy should identify tasks for AI to automate to achieve the goals. 2. Use rich, preferably exclusive data sets as the foundation for executing the strategy, as data provides competitive advantage where computing power and algorithms do not. 3. Consider updating business processes to integrate AI and support the strategy, as adding AI to just one part of a system won't help if other processes are still slow. 4. Include ethical considerations like eliminating bias, protecting data and control, to address risks from AI inheriting

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    131 views8 pages

    IDC The Four Elements Your AI Strategy Needs To Succeed

    Uploaded by

    jegansolai
    The document outlines the four elements that an organization's AI strategy needs to succeed: 1. Align the strategy with strategic business goals like improving profits or reducing costs, not just technology goals. The strategy should identify tasks for AI to automate to achieve the goals. 2. Use rich, preferably exclusive data sets as the foundation for executing the strategy, as data provides competitive advantage where computing power and algorithms do not. 3. Consider updating business processes to integrate AI and support the strategy, as adding AI to just one part of a system won't help if other processes are still slow. 4. Include ethical considerations like eliminating bias, protecting data and control, to address risks from AI inheriting

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    of 8

    THE FOUR ELEMENTS

    YOUR AI STRATEGY
    NEEDS TO SUCCEED
    The Four Elements Your AI Strategy Needs to Succeed

    Artificial intelligence (AI) will be a key


    technology that propels organizations
    through Digital Transformation (DX).

    IDC predicts that by the end of 2019, 40%


    of all DX initiatives will be related to AI.
    That’s because data that comes from DX initiatives has limited
    value without the right technology to empower organizations to
    extract valuable, accurate, and timely insights.
    Many businesses are turning to AI technologies to help derive
    real value from their data, but in a haphazard way. Enterprises
    need to create an organization-wide Artificial Intelligence
    Strategy to prioritize where to implement AI and how to use it.
    So, how do you start creating your organization’s AI strategy?
    Here are the first steps you need to take:

    2
    The Four Elements Your AI Strategy Needs to Succeed

    1 Align the AI Strategy with a


    Strategic Business Goal
    AI technology is capable of so many tasks. Organizations need to clearly define what element of their business they
    want to improve and tie their AI strategy to a business goal (such as improving profits or reducing workforce costs),
    and not a technology goal. Once the business goal has been identified, organizations should assess if the desired
    business outcome aligns with one or more of the core benefits of AI. Some of those core benefits include:

    Complete work Improve the Automate routine and/


    more quickly quality of work or repetitive tasks

    IN PRACTICE
    For example, if your business goal was to improve productivity, your organization’s AI strategy could include identifying routine
    and repetitive tasks to automate, which will in turn increase accuracy and efficiency in your business processes. Improving
    productivity through AI will then deliver insights in a timely manner, resulting in a better realization of business value.
    One more thing to remember when aligning your strategy to business goals - make sure that you are using your AI strategy and
    AI technology to achieve sustainable competitive advantage. AI is transformative, so you don’t want to expend the
    time and resources to just align your AI strategy to a short-term business goal.

    3
    The Four Elements Your AI Strategy Needs to Succeed

    2 Use Rich Data Sets as the Foundation


    of Your Strategy Execution
    The most successful way to ensure your AI strategy is driving sustainable competitive advantage
    is to make rich, preferably exclusive data sets, the foundation of your strategy execution.

    To successfully deploy AI, your Computing power is available via the cloud to almost any
    organization needs three things: company. Machine/deep learning models and algorithms
    are open source and are being democratized. There is little
    competitive advantage to hinging your AI strategy on either of
    these elements. However, data, particularly proprietary data, is
    an element on which your organization can build a sustainable
    strategy for competitive advantage.
    Even if you have your own proprietary data, you will most
    likely need to supplement it with data from other providers as
    well. No matter the source of your data, it is crucial to ensure
    that you are working with high quality data, and are following
    Rich data sets
    Computing power Machine learning secure governance guidelines to protect your proprietary data
    (high speed and and/or deep learning
    infinitely scalable) algorithms and to safeguard third party data.

    4
    The Four Elements Your AI Strategy Needs to Succeed

    AI Strategy in Action
    An IDC client in automotive insurance planned on embarking on an AI-first strategy. They based this
    strategy on their proprietary data. The company combined their unique data about its auto insurers
    and vehicles with real-time GPS app data to gain more detailed and real-time information about its
    drivers. Combining this information through AI algorithms gave the company better insight into the
    habits of their insurers and will potentially help the company from taking on high-risk drivers.
    This strategy to combine the company’s private data with publicly available data or third-party data
    creates competitive advantage.
    AI strategy aligned with the business goal should have data as the foundation. This
    way AI can help businesses create sustainable competitive advantage.

    5
    The Four Elements Your AI Strategy Needs to Succeed

    3 Consider Which Business Processes


    Will Need to be Updated to
    Support the Strategy
    Integrating AI into your business based upon your strategy is smart, but it can be
    challenging because there are so many factors to consider. When executing your
    business strategy, think about these three things:

    Processes Change Management Technology


    Mature companies will have Establish a change management organization AI technology is being commoditized,
    of archaic processes that to proactively address human concerns about which means that unless AI is your
    will need to be upgraded to AI. Look for ways to retool existing staff to main business, you can simply use AI
    accommodate the AI strategy support more strategic initiatives and fill in as a service provided by companies
    and technology. Adding skill gaps. If you plan on building an AI team, like Amazon, Google, and Microsoft
    AI to just one part of the you will need to address both the business or other niche players — but just be
    system, when other system and technology sides — people who have careful how you share your data and
    processes will still be slow, a general understanding of AI and people ensure data privacy and compliance.
    won’t help the process who can understand and work with data and Remember, your proprietary data is
    overall. programmers. your competitive advantage. Protect it.

    6
    The Four Elements Your AI Strategy Needs to Succeed

    4 Include Ethical Considerations


    in Your Strategy
    With any technology, there is the potential for individuals to use it in an irresponsible or
    unethical manner. The same is true for artificial intelligence.
    Recent advances in AI have made it smarter, faster, and more human. But with all the data, opinions, and
    interactions from a global community, AI can inherit our human flaws, particularly around biases. Since AI
    algorithms are built by humans, they aren’t neutral. This leaves them exposed to bias as they are programmed
    or used. Instances of bias are found in image searches, hiring software, financial searches, and so forth.
    That’s why it’s so important for organizations that build or use AI technology to address these questions and
    establish a code of ethics within their AI strategy.

    How to eliminate AI bias, protect user data, stay in


    control of a complex system, and protect against
    unintended consequences are just some of the
    fundamental questions organizations should be
    prepared to answer when working with AI.

    7
    The Four Elements Your AI Strategy Needs to Succeed

    The rapid rise of digital


    transformation has pushed AI to
    the top of the corporate agenda.
    Organizations that don’t approach AI integration in a thought-out,
    text strategic manner risk wasting time, money, and resources on a digital
    transformation process that doesn’t help realize business success. A
    strategy that identifies areas ripe for AI and aligns to tangible business
    goals is crucial for implementing meaningful digital transformation.

    Learn more about how IDC works with clients to build and
    execute effective AI strategies. Watch this video featuring
    IDC’s Program Vice President of AI Strategies, Ritu Jyoti, and
    see how IDC is approaching AI and AI strategy.

    IDC.COM IDC Blog

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