This is a republication of the paper “Artificial Intelligence: Ready to Ride the Wave?”, with the title above, highlighting the point in question.
December 2021
BCG Executive Perspectives
This site version was edited by:
Joaquim Cardoso MSc.
Senior Advisor for Health Transformation and Digital Health Strategy
August 10, 2022
AI HAS STRONG POTENTIAL TO REDEFINE INDUSTRIES
At BCG, we believe AI is one of the main forces that will transform industries in the next decades — and we have made it one of our largest investment areas.
Many companies have invested in AI to unlock its potential.
However, only 11% have released significant value — as the majority have failed to scale beyond pilots, reimagine the way they work with data, and redefine human-AI interaction.
This document gives insight into the main success factors that corporates should consider when deploying AI solutions.
ACT HOLISTICALLY TO HARNESS THE POWER OF AI
AI is gaining momentum given potential, yet headwinds must be addressed
CURRENT STATE AND TRENDS
AI: implications for leaders
I. Embed AI in your business
II.Prepare your operating model for AI
SELECTED DEEP DIVES
Significant value release from AI is rooted in reimagining the way companies work with data and an ability to move from pilots to scaling
Only 11% of companies report significant financial benefits through revenue/cost improvements from implementing AI
A critical element is people’s interaction with AI — high value is unlocked from zero-based design and effective organizational learning
To capture value, reimagine processes…
… and rethink human-AI interactions
Despite positive outlook, companies must manage labor, data, ethical, and regulatory dynamics
Treat AI as a business transformation: don’t focus only on tech and algorithms — design collaboratively with business owners
Use the 10–20–70 rule: Realizing value from AI is rooted in business adoption …
… Create an environment in which tech can co-develop and implement AI solutions with business team
Enable data and AI via five “mental flips”: decouple data capability building from core IT, embed flexibility via reshoring, and modernize iteratively
Original publication
https://media-publications.bcg.com/BCG-Executive-Perspectives-AI-Ready-to-Ride-the-Wave.pdf?utm_source=linkedin&utm_medium=social&utm_campaign=digitalinfluencers&utm_description=organic&utm_topic=ai&utm_geo=global&utm_content=s_eaves&tli=104542ly published at
4 KEY DYNAMICS
Data availability, quality, buy-in, & governance centralization critical to scaling of AI — continued gaps but progress underway
Companies have advanced the data “foundations” in the past 3 years…
… Yet, actual data maturity falls short of corporate ambitions
Strong data focus underpins China’s advancement in AI
AI faces many ethical challenges…
… and “black box” perception
