Is AI a distraction???

AutomationI was recently in an exchange with a respected industry analyst where they stated that AI is not living up to its hype – they called AI ‘incremental’ and a ‘distraction’. This caught me a bit my surprise, since my view is that there are more capabilities and approaches available for AI practitioners than ever before. It may be the business and tech decision makers approach that is at fault.

It got me thinking about the differences in ‘small’ AI efforts vs. Enterprise AI efforts. Small AI are those innovative, quick efforts that can prove a point and deliver value and understanding in the near term. Big AI (and automation efforts) are those that are associated with ERP and other enterprise systems that take years to implement. These are likely the kinds of efforts that the analyst was involved with.

Many of the newer approaches enable the use of the abundance of capabilities available to mine the value out of the existing data that lies fallow in most organizations. These technologies can be tried out and applied in well defined, short sprints whose success criteria can be well-defined. If along the way, the answers were not quite what was expected, adjustments can be made, assumptions changed, and value can still be generated. The key is going into these projects with expectations but still flexible enough to change based on what is known rather than just supposition.

These approaches can be implemented across the range of business processes (e.g., budgeting, billing, support) as well as information sources (IoT, existing ERP or CRM). They can automate the mundane and free up high-value personnel to focus on generating even greater value and better service. Many times, these focused issues can be unique to an organization or industry and provide immediate return. This is not the generally not the focus of Enterprise IT solutions.

This may be the reason some senior IT leaders are disillusioned with the progress of AI in their enterprise. The smaller, high-value project’s contributions are round off error to their scope. They are looking for the big hit and by its very nature will be a compromise, if not a value to really move the ball in any definitive way – everyone who is deploying the same enterprise solution, will have access to the same tools…

My advice to those leaders disenchanted with the return from AI is to shift their focus. Get a small team out there experimenting with ‘the possible’. Give them clear problems (and expectations) but allow them the flexibility to bring in some new tools and approaches. Make them show progress but be flexible enough to understand that if their results point in a different direction, to shift expectations based on facts and results. There is the possibility of fundamentally different levels of costs and value generation.  

The keys are:

1)      Think about the large problems but act on those that can be validated and addressed quickly – invest in the small wins

2)      Have expectations that can be quantified and focus on value – Projects are not a ‘science fair’ or a strategic campaign just a part of the business

3)      Be flexible and adjust as insight is developed – just because you want the answer to be ‘yes’ doesn’t mean it will be, but any answer is valuable when compared to a guess

Sure, this approach may be ‘incremental’ (to start) but it should make up for that with momentum and results. If the approach is based on expectations, value generation and is done right, it should never be a ‘distraction’.

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