Artificial intelligence
Media outlets across the globe hailed 2023 as the year of artificial intelligence, and McKinsey & Company spotlighted the rise of generative AI in particular. A Boston Consulting Group survey reveals that 62% of leaders are excited about AI’s potential. Yet, many people still aren’t sure how to leverage AI for business growth in a practical and ethical way.
If you’ve hesitated to dive completely into the AI pool, you’re not alone. AI is a complicated subject for many reasons. On one hand, it can offer tremendous efficiency. That’s music to any growth-focused entrepreneur’s ear. On the other hand, AI comes with significant flaws. Products like ChatGPT are only as good as the data they train on. When that data is biased or flawed, the generative AI output follows suit.
I've asked four executives to discuss their AI predictions to get a broader picture of how other companies are approaching AI as we enter 2024. Interestingly, all the leaders I’ve asked to contribute are optimistic about AI. However, they have realistic expectations about this evolving technology. Here are their four takeaways:
1. Use AI to wow customers while upholding firm policies.
For Zack Toyota, founder and CEO of SelfDisrpt, AI will be the perfect vehicle to power up his company’s customer service. He’s especially interested in exploring AI solutions’ natural language processing abilities. “Imagine chatbots and digital assistants responding with almost human-like understanding,” he says. “Fluent, context-aware conversations that assist, entertain, and enlighten. It’s transformative tech that’s poised to shatter language barriers.”
However, Toyota is not hiding from the so-called “elephant in the room.” Yes, AI is groundbreaking, revolutionary, and transformative; it can give customers more personalized experiences to boost their loyalty. Unfortunately, AI is still far from perfect. To avoid the hazards that lurk within AI’s ocean of possibilities, he suggests putting careful measures in place before moving forward with any AI product.
“Organizations need to understand the risks and have firm policies in place,” Toyota says. “Creating ethical, transparent, fair, and unbiased AI systems requires an enterprise-wide commitment. Companies must ensure their AI systems align with established standards and values. Involve your board, compel your C-suite, and engage teams across all departments. Use the collective brainpower of your organization to set up rigorous standards and systems to implement AI.”
2. Expect disruption and transformation within the labor market; don’t fear it.
The labor market has gone through some major disruption since the COVID-19 pandemic. Alan Salton, managing director at Panorama Consulting Group, expects the changes to continue as more AI tools are unleashed into the marketplace. Salton sees AI affecting some industries more than others, particularly industries with workforces that typically handle easily repeated tasks.
“Some research predicts that 60% of manufacturing, office support, and service jobs can be automated over the next five years,” Salton says. “While some interpret this as job losses, others foresee the changing nature of these jobs. AI may not replace workers but assist them in doing their jobs better, whether it’s bringing better medical treatments to market or advancing productivity in routing and shipping.”
AI is far from matching a human’s communication, problem-solving, and interpersonal skills. So, hiring managers and human resources will emphasize the need for strong soft skills. Additionally, companies will need employees who are versed in AI. “There is a shortage of experienced and qualified AI resources,” Salton says. Those who master AI technologies—machine learning, natural language processing, computer vision, and ethics—will be in high demand.
3. Focus on use cases with immediate benefits.
Andrew Smart, cofounder and commercial director at Slator, is leaning into the AI movement. As the leading provider of news, research, and advisory services to the global language industry, Slator creates a lot of content. That’s why Smart is most enthusiastic about AI’s potential in communication and content creation.
“In collaboration with Sintetic.ai, Slator has launched Slator Answers,” says Smart. “Slator Answers is AI-trained on our vast content library of articles, data, and research reports. Subscribers can now submit topical GPT-type queries and receive well-constructed, natural language answers with links to sources.” The result of this new tool? Clients can self-serve and enjoy faster responses without placing extra demand on the company’s staff.
Smart advises other organizations to start gradually with AI. Siloed thinking hinders innovation, which is essential for the technology’s progress. To enhance organizational alignment, find use cases that offer immediate benefits. “Talk to your sales and marketing teams about how they generate content, whether for marketing, corporate communications, or proposals,” he says. “Consider creating a copilot to support knowledge and task instruction for staff to avoid them from manually searching through large volumes of documentation. Finally, think about improving access to your company-wide data by pooling all of your data and getting all of your systems talking together.”
4. Make AI the secret ingredient for client retention
Greg Alexander, founder of the mastermind community Collective 54, believes AI can help stave off customer attrition. “We are building an AI to predict and prevent churn,” he says. “Our business model depends on members paying monthly dues. When a member churns, it hurts. An AI that can help us retain more members is very valuable.”
AI’s potential to help Alexander’s community lies in its predictive abilities. The right AI product can evaluate a subscriber’s profile and recommend personalized insights. By predicting what the client wants to see based on historical data, AI can increase brand loyalty and help prevent attrition.
Interestingly, Alexander hasn’t seen a lot of AI testing within the firms he works with. He expects this to change as more leaders become aware of AI’s vast capabilities. For example, he cites one client who recently discovered a way for their team members to alleviate their workloads by 10% to 60% with AI. “The impact of this cannot be overstated,” he says. “The productivity level of the employees, measured in output per hour, is forecasted to increase by 25% in 2024. This drops directly to the bottom line in consulting because revenues will increase faster than payroll.”
AI is still in its infancy in many ways. Rather than ignoring it until it matures, bring it into the fold. The insights shared above show that with a practical and ethical approach, navigating the AI landscape could lead to unprecedented growth.
