The advancements in the domain of Artificial Intelligence (AI) are accelerating the business transformation. The old and conventional way of working and operating a business is no longer a success mantra. AI ecosystem enables people and machine to collaborate in a novel way. Moreover, the processes and tasks are getting automated, which in turn, changing the inherent nature of human work. In a recent study done by a large consultancy firm, it was found that the economic contribution of AI to the global community is worth US$ 15.7 trillion by 2030. However, another study revealed that the Asia-pacific region would generate economic value ranging from US$1.8 trillion to US$3trillion a year by 2030.
The immediate impact of the AI in the business can be seen in revolutionizing the consumer-driven market. Personalized, preferred, and tailored offerings matching to the individual’s demands is not a far distant task. A chatbot designed to process the complete insurance pipeline, for example – claims initiation, policy integration, and reference, fraud and risks consideration, payout and notification, can displace the insurance industry. The entertainment industry now with the help of AI able to provide personalized recommendations resulting in increased retention and engagement. The world has embraced the three cycles of business transformation – standardization, automation, and adaptation.
- Standardization– The first cycle of the business transformation looked at standardization of the processes. For example, Henry Ford initiated and drove a standardized process of manufacturing automobiles by realizing the assembly line in the manufacturing business.
- Automation– The next cycle dealt with the automation of the processes. The advancements in the information technology made it possible for businesses to re-engineer the processes. The business process re-engineering resulted in the exponential growth of the business. Companies like Walmart, UPS transformed itself to become global giants.
- Adaptation: This cycle is trying to re-engineer the processes to be more adaptable and flexible tuned to the behaviors, preferences, and choices of the actors and their environmental context. The adaptability of the process is achieved by considering two parts, data and the process in the context. There is no need to have a priori sequence of steps to accomplish the task. The adaptable process, once realized in the context, will be able to achieve effectively.
The businesses are considering new strategies to embrace AI but to fully utilize the benefits of the AI they need to explore and exploit the AI ecosystem and cluster of abilities. They need to
- build an organic team: Business needs to roll out the workforce strategy considering the integration of the AI with the workforce. The restructuring of the workforce will also have an impact on the roles, responsibilities, performance metrics, and incentives. Flexible small size and adaptive organic team to be set up to leverage focused value creation. The organic team represents the combination of the human and AI machines to contribute to the unified goal. New trust to be established on data as part of the organic team is governed by the data. However, the integration of creative and innovative thinking with the AI capability (Human + AI) will enable the organic team to function effectively and efficiently.
- restructure tasks: Business needs to restructure and redefine the tasks in the organic team. One method is to find the repetitive and routine tasks that can be automated. The other way is to identify ways to complement and augment human capabilities. The integration of human and machines result in the symbiotic partnership.
- Integrate infrastructure: The IT infrastructure will become more relevant. Whether the businesses are injecting the AI in the front, middle, or the back of the business processes, its integration with the IT infrastructure can make or break the processes. The workforce will be able to collaborate and interact effectively utilizing augmented reality and virtual reality environments.
- reshape trust: The trust to be reshaped and be part of the business culture as the businesses start their journey of including the AI. They need to have complete clarity in the ownership, responsibility, roles, and accountability as these will play a more significant role in establishing the new trust between the human and the AI machines. It is critical to understand the consequences of biases or unexpected results as an outcome of the symbiotic partnership. For example, how one would respond to the result of a wrong recommendation of an intelligent machine, in the health sector, resulting in the life of a person. One way is to place the human in the driver’s seat to bring greater transparency and equip them with the knowledge and understanding so that the machines are deployed sensibly and safely. Moreover, the outcomes generated by the machines must be assessed and evaluated aptly considering the risks. The ethics, self-control, and self-regulation framework should be deployed at the core of the business.
To establish a symbiotic partnership of human and AI machines transcending our limitations, we need to answer the question, “How we can understand, explore and exploit the deeper relationships and new dependencies over the AI machines?”
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