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HBR’s “ The Value of Digital Transformation ” reports, “While 89% of large companies globally have a digital and AI transformation underway, they have only captured 31% of the expected revenue lift and 25% of expected cost savings from the effort.” This dip delays when the business can start realizing the value delivered.
Shift AI experimentation to real-world value GenerativeAI dominated the headlines in 2024, as organizations launched widespread experiments with the technology to assess its ability to enhance efficiency and deliver new services. Most of all, the following 10 priorities should be at the top of your 2025 to-do list.
“Our people make the difference” — a common catchphrase of Walmart founder Sam Walton — still guides the company’s path forward as it ventures into the future with generativeAI. The move places Walmart among a handful of companies (aside from tech giants) that have leveraged generativeAI at scale.
CIOs should return to basics, zero in on metrics that will improve through gen AI investments, and estimate targets and timeframes. Set clear, measurable metrics around what you want to improve with generativeAI, including the pain points and the opportunities, says Shaown Nandi, director of technology at AWS.
For its GenerativeAI Readiness Report, IT services company Avanade surveyed over 3,000 business and IT executives in 10 countries from companies with at least $500 million in annual revenue. Despite the reduced costs, though, the necessity for comprehensive change programs remains paramount.
However, to describe what is occurring in the video from what can be visually observed, we can harness the image analysis capabilities of generativeAI. Prompt engineering Prompt engineering is the process of carefully designing the input prompts or instructions that are given to LLMs and other generativeAI systems.
Overwhelming majorities of executives around the world are planning to spend money on generativeAI this year, but very few are truly ready for the technology, according to a survey released today by the Boston Consulting Group. Nevertheless, generativeAI is an area where C-suites can effectively lead from the front, Lukic said.
Despite headlines warning that artificial intelligence poses a profound risk to society , workers are curious, optimistic, and confident about the arrival of AI in the enterprise, and becoming more so with time, according to a recent survey by Boston Consulting Group (BCG). For many, their feelings are based on sound experience.
You don’t have to look further than recent headlines to know generativeAI has garnered outsized attention in 2023. The case for GenAI education as part of IT’s remit At first blush, training and educating users on how to use generativeAI may seem outside the typical scope of IT, but GenAI is not a typical tech transformation.
Gen AI moved past hype and proved its worth ChatGPT and the generativeAI revolution marked their second anniversary in November 2024. To University of Phoenix CIOJamie Smith, that makes gen AI all grown up. Were moving away from the hype and learning to live with generativeAI, he says.
The hype around generativeAI since ChatGPT’s launch in November 2022 has driven some software vendors to rush to incorporate the technology into their applications. Despite being an early adopter of AI in general, Salesforce has taken a more measured approach to generativeAI.
Organizations are rushing to figure out how to extract business value from generativeAI — without falling prey to the myriad pitfalls arising. They note, too, that CIOs — being top technologists within their organizations — will be running point on those concerns as companies establish their gen AI strategies.
It’s something completely different, and potentially interesting, except for a few fatal flaws that shed light on the hard road CIOs are in for as we enter the era of enterprise software enhanced everywhere by generativeAI. The challenge won’t come from AI being able to do what humans do only better.
GenerativeAI is changing the world of work, with AI-powered workflows now slated to streamline customer service, employee experience, IT, and other fields. One report estimates that 4,000 positions were eliminated by AI in May alone. Then ChatGPT came along and changed everything again.
Our field organization includes customer-facing teams (account managers, solutions architects, specialists) and internal support functions (sales operations). Prospecting, opportunity progression, and customer engagement present exciting opportunities to utilize generativeAI, using historical data, to drive efficiency and effectiveness.
Now in the next digital wave, and with the emergence of gen AI, Repsol is aware this technology represents a turning pointin productivity, which is whyit became an early adopter. As a result, the GenerativeAI Competence Center was born in June 2023, in collaboration with Microsoft.
Spoiler alert: The solution we will explore in this two-part series is generativeAI (GenAI). But before we get into that, lets talk about what steps CIOs have taken to ensure their teams are equipped to navigate this rapidly changing environment.
With the rise of generativeAI, CEOs recognize an opportunity to shift from technology-led digital transformation to executive-led business reformation. Accenture Technology Vision 2024 There’s a reason why CEOs and CFOs are talking about AI and generativeAI, according to Accenture research.
Organizations should create a cross-functional team comprised of people who are already building, managing and governing existing AI initiatives in order to lay the foundation for genAI and select the appropriate AI solutions or models. Increase adoption through changemanagement.
We selected a platform capable of managing both structured and unstructured data, ensuring that we are prepared for future innovations, even if we are not yet utilizing unstructured data at this point. These individuals play a pivotal role in driving change and implementing new strategies.
For its AI Priorities Study 2023 , Foundry surveyed IT decision-makers who have either implemented AI and generativeAI technologies in their organizations, have plans to, or are actively researching them. Top of those AI priorities for now is generativeAI, with 56% of respondents eager to learn more about it.
Deloitte’s State of GenerativeAI in the Enterprise report for the second quarter of 2024, found that 75% of the nearly 2,000 IT and line-of-business leaders surveyed anticipate changing their talent strategies within the next two years because of generativeAI.
The analyst reports tell CIOs that generativeAI should occupy the top slot on their digital transformation priorities in the coming year. Moreover, the CEOs and boards that CIOs report to don’t want to be left behind by generativeAI, and many employees want to experiment with the latest generativeAI capabilities in their workflows.
What is our changemanagement strategy once we roll out this new application to the field? """ We set our prompt to instruct the model on the translation to Korean and Arabic: prompt=f""" text={text} Translate the following text into these languages: 1. His area of focus is generativeAI and AWS AI Accelerators.
Ballard is also the technology executive responsible for both the company’s battery electric vehicle (BEV) platform as it shifts to electrification, and its digital platform engineering and architecture organization, and he counts on conversational AI and generativeAI as major components to transform HR and IT service requests.
Kasparian adds that employees at Forrester are also doing a lot of work around generativeAI, such as content creation and transcript summarization. When encouraging employees to use generativeAI, Kasparian emphasizes the efficiency that can be gained from the tools. Don’t just take it at face value,’” he says.
Bayer Crop Science sees generativeAI as a key catalyst for enabling thousands of its data scientists and engineers to innovate agricultural solutions for farmers across the globe. From an acceleration perspective, it’s the reuse dimension that we see for creating opportunities using generativeAI and Bedrock,” he says. “As
Kyndryl Consult has also expanded its existing partnerships with hyperscalers, such as Google Cloud, to ready itself to deliver on generativeAI, Slaga said. Our most recent global partnerships were announced late last year with Palo Alto Networks and Dynatrace,” said Mark Slaga, global practice leader at Kyndryl Consult.
Some prospective projects require custom development using large language models (LLMs), but others simply require flipping a switch to turn on new AI capabilities in enterprise software. “AI For example, it’s experimenting with using gen AI to automatically read financial statements from corporate customers when assessing loan applications.
In addition, we’re investing in our tools with generativeAI to facilitate migration. Besides that, we’ve had some other developments, such as the breakthrough of generativeAI in 2023, which significantly sped up the pace of innovation. After all, every reorganization takes time and requires proper changemanagement.
With generativeAI now a firm digital transformation priority , 2023-24 will mark the beginning of an AI-driven transformation era. When undergoing a digital transformation, executives often fail to consider the need for clear communication with their employees,” says John Veltri, managing director at SADA.
Since technology evolves rapidly, ensuring seamless adoption while keeping business teams aligned requires continuous changemanagement. Additionally, optimizing cost while investing in next-gen capabilities like AI, automation, and cloud remains a challenge.
Code changemanagement processes One rule that can occasionally be broken without outside repercussions is sending new code or a new capability into production without first following a required changemanagement process, Chowning says. IT Leadership, IT Management, IT Strategy
The good news for CIOs is that you have an opportunity to take a leadership role with AI, especially as organizations mitigate risk by keeping AI model development centralized. Dont forget to consider the support employees will need to adopt AI and develop a changemanagement plan to bring everyone along.
We’ve moved beyond deterministic chatbots and automated processes to a realm where embedded generativeAI enables faster, more personalized interactions that build loyalty and connection. GenerativeAI will continuously learn from feedback and algorithms, while large language models adapt.
From your inbox to customer interactions, this approach to GenerativeAI is meant to be a game changer for businesses. This transformation shift to GenerativeAI in the workplace looks very promising. Microsoft Copilot is not the only GenerativeAI tool. GenerativeAI is not the enemy.
The first use of generativeAI in companies tends to be for productivity improvements and cost cutting. Now, with generativeAI, ask who are those one or two executives who are really leaning into this,” he says. What we traditionally called changemanagement is now unbelievably bigger.”
Consider how fast generativeAI went from avant-garde to ubiquity: At under two years, it may be a record. GenerativeAI is also poised to dramatically speed up the whole process, says Rajib Gupta, senior director advisor in Gartner’s IT sourcing, procurement, and vendor management team. “The
Boards of directors are placing a high priority on deploying generativeAI as fast as possible so their organizations dont lose competitive advantage. CIOs are under intense pressure to deliver massive digital transformation initiatives with limited resources under tight time constraints.
While new technologies have shifted priorities, the need to manage stakeholders has not, says Krishna Prasad, CIO of technology services business UST. And with AI used in almost every part of the business, stakeholders have become much more tech savvy, reducing their dependency on IT departments.
Salesforce to capitalize on the GenAI demand Salesforce’s possible bid to acquire Informatica could be a result of the company’s strategy to capitalize on the growing demand for generativeAI , analysts said.
And online education company Pluralsight conducted a survey of IT professionals in the US and UK and found that 74% worried AI tools will make many of their daily skills obsolete. Using generativeAI is so cheap, even if they use the highest premium level,” Thurai says.
With the new IT structure, it’s possible, for example, to quickly develop new tools and functions related to generativeAI, and then use them effectively. Changemanagement and communication therefore played an indispensable role in its success. IT transformation is a people job,” he says.
Responsible AI: Balancing innovation and risk The rise of generativeAI has put a mirror in front of companies, showing them the work they have to do to strategically leverage their data. Its a message CDOs have been yelling from the rooftops for some time.
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