In November 2022, AI experienced a paradigm shift, going from a technology advancing within the background to a disruptor on the front stage. Today, now we have already reached the subsequent phase of generative AI, where consumers are adopting the technology and corporations are starting to speculate at scale.
Next-generation AI will fundamentally change how businesses operate and succeed. Simply put, it can transform work, especially for knowledge staff.
Companies that emerge from this crisis as frontrunners will take a holistic approach to seize latest value creation opportunities and empower their workforce.
It has been six months since I became Vice Chairman of AI and Digital Innovation at KPMG USAour version of the emerging C-suite role: The Chief AI Officer (CAIO). The last six months have been marked by successes and hurdles, but one thing has confirmed my experience: an empowered, accountable leader within the C-suite is critical to driving daring, fast, and responsible AI.
Many have asked me if this role must be filled by a longtime technology leader – reminiscent of a CIO, CTO or CDO. My answer is easy: “No.” Technology leaders undoubtedly have a critical role to play, however the sheer scale and ubiquity of the best way AI will change the best way we work and live requires a brand new visionary who can balance technical understanding with business acumen, strategic foresight and innovation.
Disruption could also be overrated immediately, but it surely's underrated in the long term. This role requires someone who understands each the disruptive nature of AI and mobilize a whole business. As firms move beyond pilots and use cases and industrialize the technology across entire functions and corporations, I share three insights from my experience.
Establish governance that lets you be daring, fast and responsible (all at the identical time).
With the rapid pace of adoption and rapidly evolving regulations, firms are faced with the query of advance their AI strategies in a protected and ethical manner. The first task of a brand new CAIO? To erect trustworthy AI guardrails – not speed bumps – on the AI highway to act as pacesetters for those following.
CAIOs should ask themselves three key questions as they start mobilizing their governance programs: Can you discover where AI is getting used in your organization today? Do you’ve gotten a responsible use of AI policy in place and someone at the highest to oversee it? And do you’ve gotten an efficient approach to monitoring and managing your policies and controls?
At KPMG, we launched our Trusted AI Framework in October and established our Trusted AI Council to guide our decision-making and help us keep our eyes on the potential. We've based our principles on 10 ethical pillars, from sustainability and security to fairness and privacy. While every company has its own approach to developing and deploying AI, a solid governance approach is required to enable firms to innovate quickly and boldly.
Put AI within the hands of your employees
Over half of consumers say artificial intelligence is already having a major impact on their skilled lives, and much more consider it can be doing so in two years.
These numbers are increasing significantly amongst younger generations. However, many are still unsure if this may change their skilled lives. The unknown may be daunting, but familiarity creates comfort. Companies can ease their employees' fears by providing them with the generation's AI using secure systems and offering training and education.
Perhaps more importantly, by making it widely accessible, you're accelerating the innovation curve with new-generation AI. A top-down approach to make use of cases is unlikely to uncover essentially the most exciting opportunities, whether it's a brand new product, a brand new business model, or an enormous productivity boost. We've found that a few of the most precious use cases have come from our employees who’ve been introduced to the tool over the past 12 months.
The excellent news is that firms are keen to assist their employees and plenty of are already offering or planning to supply mandatory AI training for his or her employees. Whether or not your workforce is ready will determine the success of an AI strategy. CAIOs should have the authority and influence to mobilize their organizations, from the regular knowledge staff to their executive colleagues and the board. The need for a comprehensive change management and communications strategy can’t be overstated.
Hit the AI iron while it's hot or risk being overtaken
There is one constant in cutting-edge technology: it doesn’t stay static for long. The AI generation has taken hold faster than another modern business technology, and the businesses that act decisively will give you the chance to secure significant first-mover benefits.
In this moment of disruption, AI-focused organizations are prone to emerge as winners; those which can be slow to evolve may struggle to maintain up with their more agile competitors. The fast follower advantage has waned with other recent technological advances, and we may even see it erode completely with latest generation AI. For CAIOs, this presents each an amazing challenge and a possibility to guide their organizations into the long run.
