Should your Company Have an AI Strategy?

So, I recently had this interesting chat with the head of a big industrial company. We were reminiscing about that time not too long ago when every big company suddenly thought they needed a "Google Glass strategy." It was almost comical. Everyone was buzzing about integrating digital information into everyday eyewear, and by the time they realized the implications, emails were flying off, demanding a strategy stat! But looking back, the frenzy was kind of odd—it was more about the hype than a practical, transformative technology. Despite the initial excitement, Google Glass stumbled due to privacy concerns, impracticality, and a hefty price tag, eventually fading from the consumer market though finding some use in specialized sectors like healthcare and industry. This brings us to a bigger and much buzzier topic: AI, specifically generative AI and machine learning. Unlike Google Glass, this stuff is a game changer. It's not just about adding a cool feature or a straightforward upgrade. It's about fundamentally rethinking how things are done, which means, yes, companies really do need to think about AI strategically.

The AI Conundrum: To Pay or Not to Pay?

When you think about AI, you face a barrage of decisions. Do you bring big guns like big management consulting firems? Or perhaps tech-focused software service providers cum consultants like TCS, Accenture, Infosys? Do you go with a big tech company? These questions kick off the classic platform shift discussion.

Imagine you're a midsized company in bulk drug manufacturing. What's your approach to generative AI? Some of this AI tech will come embedded in software from your regular vendors—think Google, Microsoft, or Salesforce. It's in there, enhancing things like your CRM or invoicing.

But that's just the beginning. Startups are pitching the newest AI-powered tools for everything from managing expenses more efficiently to revolutionary new features in CRM systems. This isn't just about upgrading what you have—it's about transforming parts of your business with AI, tailored to both general and specific industry needs.

AI and Industry: It's Not One-Size-Fits-All

The impact of AI isn't uniform across all sectors. For some, like big manufacturers or tech firms, AI might revolutionize how they operate, offering significant competitive advantages. For others, the effect might be subtler.

Take airlines, for example. Online booking systems were disruptive for travel agents but not so much for airlines. They changed some internal processes but didn't redefine the core business of flying planes. In contrast, look at what cloud computing did to companies like SAP. It's about identifying where AI can make a real difference in your context.

Historically, technological leaps like the move to cloud computing have initiated a "platform shift." This is where existing tech gets an upgrade across the board—like when AI starts popping up as a feature in everything from your office software to the systems managing your supply chain.

But sometimes, it's more than just a shift; it's a new model. Think about how Oyo changed what it means to offer lodging or how Zepto redefined grocery delivery. AI has the potential to do the same for many industries by changing not just how things are done, but what can be done.

Practical AI: Beyond the Hype

It is essential to cut through the hype and focus on what AI can do for your business. Not every company needs to leverage AI in a grand, transformative way. Sometimes, it's about smaller, practical applications that streamline operations, enhance customer interactions, or provide new insights from data.

For instance, I often wish I could use AI to handle specific tasks, like reading through my emails and telling me which ones I must reply to first. While current tools might not be perfect for every task (like my email example), they continually evolve, offering new solutions that were hard to imagine just a few years ago.

AI Strategy: A Tailored Approach

So, do companies need an AI strategy? Absolutely. However, it needs to reflect their unique circumstances, challenges, and goals. It's not about jumping on a bandwagon; it's about thoughtful technology integration that can significantly impact.

AI is here, and it's reshaping landscapes across industries. AI demands attention, whether it's enhancing existing products, creating new services, or transforming operational processes. But like any tool, its value comes from its capabilities and how wisely it's used.