Insights

Striking the balance: AI and business transformation (A business perspective)

Christopher Loughlin, Global Head of Business Transformation

The World Economic Forum predicts a staggering $100 trillion boost to the global economy by 2025, driven by digital transformation. This digital revolution brings with it a wave of opportunities and challenges, platform-based interactions alone are expected to unlock a significant portion of this value. Businesses are rapidly embracing technologies like AI to stay ahead and capitalize on the benefits. However, in our excitement for innovation, it's crucial not to lose sight of the human element.

While AI offers undeniable advantages, it's not a silver bullet. Striking a balance between embracing cutting-edge tools and ensuring they serve practical business needs is essential for sustainable success.

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The balancing act: Innovation vs. practicality

Pursuing innovation without a practical foundation can lead to costly failures. For example, imagine a company investing heavily in a complex AI solution for customer service, only for the users to find it difficult to adopt or for it to require constant maintenance. This hinders productivity, frustrates users, and erodes trust in future transformation initiatives.

Conversely, clinging to outdated methods can leave a company vulnerable to disruption. Competitors who embrace innovation can quickly steal market share and leave your business behind.

I've witnessed firsthand the potential and pitfalls of digital transformation. Some pitfalls include investing in the wrong technology, underestimating the complexity of implementation, and failing to align the transformation with business strategy. The most successful digital transformations are driven by a clear understanding of the problems they aim to solve. Before diving into AI, identify the specific challenges hindering your business goals. Is it streamlining workflows, improving customer engagement, or optimizing data analysis?

Key considerations from an organization perspective

• Invest in your people. AI is a powerful tool, but it doesn't replace human expertise. Your employees are the backbone of your business, and their skills are essential for effective AI implementation. Invest in training them to leverage these new technologies effectively and develop critical thinking, problem-solving, and communication skills. These are crucial for collaborating with AI and ensuring ethical implementation.
• Embrace an iterative approach. Digital transformation is a journey, not a destination. Start small, pilot new technologies, and measure the impact. Be prepared to learn, adapt, and refine your approach based on real-world results.

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The human edge in the digital age

By striking this balance between innovation and practicality, businesses can unlock the true potential of digital transformation. Here's how the human element remains crucial:

• Understanding human needs. Technology serves people. Human expertise ensures AI solutions align with user needs and expectations.
• Ethical considerations. AI raises ethical and societal concerns. Human oversight and guidance are necessary to ensure responsible development and implementation.
• Strategic decision-making. While AI can automate tasks, humans must make strategic decisions, interpret data insights, and navigate complex business challenges.

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The approach: Right-sized and maintainable transformation

The transformation landscape is filled with failed attempts and incomplete projects, underscoring the importance of a thoughtful and practical approach. Businesses eager to capitalize on the latest trends often fall victim to the "bigger is better" mentality. But the truth is, sustainable innovation lies in a right-sized and maintainable approach.

Tailoring solutions to your needs, rather than chasing the newest shiny object is crucial. Let's explore why this approach is crucial and how it can help you navigate the delicate balance between risk and reward.

The right size for the right reasons

Imagine investing in a complex AI system to automate a simple task. While impressive on paper, it creates an expensive and cumbersome solution for a straightforward problem. A right-sized approach, on the other hand, considers:

• Business needs: Focus on the specific challenges hindering your goals. Does AI address your core issue, or is there a more cost-effective solution?
• User adoption: Will your team be able to use and integrate the new technology seamlessly? Consider user-friendliness and training requirements.
• Scalability and maintenance: Can the solution grow with your business? Think about long-term maintenance costs and avoid solutions that create future headaches.

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Balancing your innovation appetite

Innovation requires calculated risk-taking. However, uncontrolled enthusiasm can lead to costly missteps. Here's how a right-sized approach helps manage risk:

• Balancing potential and reality: A powerful technology like AI might not fully mature or comply with your specific needs.
• The power of alternatives: Exploring alternative solutions, like combining AI with traditional methods, can provide the desired benefits without the complexity.
• Phased approach and experimentation: Don't dive headfirst. Start small, implement in phases, and use data-driven insights to adapt and refine your strategy.

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The human advantage

By embracing the right-sized approach, you leverage the strengths of both humans and technology. Here's why:

• Human expertise: People understand your business nuances and can guide technology implementation to address real needs. For example, in the case of AI implementation for customer service, human expertise is crucial in understanding the unique customer needs and tailoring the AI solution to meet those needs effectively.
• Long-term sustainability: Maintainable solutions require less ongoing human intervention, freeing your team to focus on strategic initiatives.

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Sustainable innovation: The road ahead

The path to digital transformation is paved with thoughtful planning and calculated risks. By prioritizing a right-sized and maintainable approach, you can unlock the true potential of innovation without jeopardizing your long-term success. Remember, the most impressive technology is the one that perfectly complements your unique business needs.

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The art of the possible with UST

At UST, we believe in the "art of the possible." We help clients push the boundaries of what's achievable while ensuring they stay grounded in practicality and manage risk effectively. It is partnering with a trusted advisor to help you navigate the complexities of AI implementation and unlock its transformative potential.

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Real world stories

T-Mobile and UST

T-Mobile's Digital Commerce Domain joined forces with UST to create the core platform of T-Mobile.com, leading to a business transformation and a smoother customer journey. Read the T-Mobile transformation story.

Equifax and UST

Equifax's cloud transformation, partnered with UST, has a ripple effect. By driving financial inclusion, it empowers businesses, improves access for individuals, and strengthens communities, all in line with its goal of positively impacting lives. Read the Equifax transformation story.

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Going ahead with your business transformation journey

Don't be afraid to push boundaries, but ensure your chosen solutions are practical, maintainable, and meet your specific needs. Transformation is a human-led revolution. By embracing innovation and practicality and leveraging the unique strengths of humans and machines, businesses can unlock the true potential of this transformative era.

Learn more about building future-ready enterprises. Visit UST Evolve.