Leadership CONNECT: 20-FEB-2025 (Y25W09)

Motivation: AI is Here and Now

The AI age is here—CEOs of every firm, in every industry or size, need to prepare for it. In this post, I want to share “The Five Steps for AI Use” as a simplified, practical model to allow CEOs to develop their AI enterprise plans.

Five Steps: Choose the Right Step for Your Organization

Step 1: Generic Personal Tools: Individuals use basic off-the-shelf AI applications for personal productivity.

• Anyone who works with documents, presentations, or data can benefit from the power of AI tools.
• Most major players (OpenAI ChatGPT, Anthropic Claude, Microsoft Copilot, Google Gemini) offer generous free usage. Still, I recommend purchasing the base licenses (~$20). This will enhance security, prevent your data from being used for training, and, most importantly, create mutual trust commitment.
• TIP: Remember that many people still perceive AI as merely an enhanced search tool, but it is much more than that. Ensure that others grasp the concept of AI’s co-creation power.
• TIP: A good usage pattern includes: (a) an initial exposure through a 1-2 hour company-wide presentation, (b) a limited company license for selected pioneers, (c) joint sharing of tips and tricks—perhaps once a week, and (d) a repetition with more groups.
• TIP: Keep in mind that utilizing organizational internal data is already at the next step.

Step 2: Business Function Tools: Specific departments adopt specialized AI solutions to improve workflows.

• Any use here calls for more managerial energy and more cost.
• Choose relevant generic business functions (e.g., service, sales communication, marketing, or recruitment). Next, aim to define a clear, straightforward implementation of ONE function and begin to realize its value.
• TIP: The more vanilla you choose here, the quicker the time to value.
• TIP: AI evolves more rapidly than other technologies, with costs and fundamental models changing frequently. It’s not wise to enter into too many year-long contracts. Aim for quick results.

Step 3: Industry Tools: The organization invests in AI tailored to its industry, leveraging domain-specific models and datasets.

• Industry-specific AI tools provide a competitive advantage by comprehending unique workflows and requirements.
• Insights driven by AI from sector-specific data improve decision-making and efficiency.
• Partnering with AI vendors who specialize in your field accelerates adoption.
• TIP: Conduct a pilot using a small dataset within the process before moving forward with full deployment.
• TIP: Look for AI tools that include compliance and regulatory features adherence.
• TIP: Regularly evaluate tools to stay current with changes in technology.

Step 4: Embedded AI in Offerings: AI becomes integral to the firm’s products or services, enhancing their value.

• AI-driven personalization can improve customer experiences and engagement.
• Automating processes with AI reduces operational costs and improves efficiency.
• Integrating AI into core offerings makes competitive differentiation possible.
• TIP: Start small—embed AI in a single feature before scaling.
• TIP: Gather user feedback to refine AI-driven experiences.
• TIP: Align AI with business goals to ensure it enhances the value proposition.

Step 5: Unique AI Capabilities: The company develops proprietary AI innovations that differentiate it from competitors.  Warning: it cost much, much more!

• Creating in-house AI models can lead to unique value propositions.
• Custom AI solutions enhance efficiency, accuracy, and customer satisfaction.
• Investing in AI research fosters long-term innovation and competitiveness.
• TIP: Leverage existing AI frameworks to speed up development.
• TIP: Form partnerships with academic institutions for cutting-edge insights.
• TIP: Monitor emerging AI trends to stay ahead of competitors.

Conclusion: Revisit Your Step According to Your Business Aspirations and Maturity

Implementing AI in an organization is a journey that evolves from personal productivity to industry-wide leadership. By following these five steps, companies can systematically adopt AI while ensuring maximum value at each stage. The key is to start small, experiment, and iterate rapidly to stay competitive in the AI-driven landscape.