Should AI Be Part of Your Digital Transformation Strategy?
Digital transformation strategies are common, but many enterprises lack an AI strategy. Where does it fit? Not everyone agrees.
AI is seeping into enterprises from all directions. It’s being embedded in applications, software tools, devices and equipment. Yet, some organizations still don’t have an AI strategy.
“The journey to AI having an impact at a firm is challenging and sometimes long,” said Nigel Duffy, global artificial intelligence leader at professional services firm EY. “To have an impact with AI you must solve a lot of problems, many of which have nothing to do directly with AI, [such as] how do you deploy solutions? How do you get them into your infrastructure? How do you get people to use them? What are the workforce and change management considerations? What kind of training is required? What’s the governance model?”
AI is too disruptive to ignore. If your company lacks an AI strategy by design, then it has one by default. A default strategy is a Wild, Wild West scenario in which AI is popping up in various places within an organization, without orchestration and alignment. The lack of cohesion and direction can result in several issues including governance and security.
“[S]ome of those risks may not be well characterized, so they have not been addressed by the appropriate level of governance and review,” said Duffy. “Most AI is going to come through procurement or it’s going to come through the backdoor or technology you’ve deployed.”
Should an AI strategy be part of a digital transformation strategy?
One reason some people think an AI strategy should be part of a digital transformation strategy is because the digital transformation strategy is viewed as the overarching business initiative that’s facilitated by modern technologies.
“If an organization’s digital transformation strategy does not already include AI, then there is a real need to revisit the overall approach to transformation, said David Homa, director of the Digital Initiative at Harvard Business School. “Technology expertise and knowledge must become foundational to how an organization conceives of, not just executes, its goals. As long as technology is viewed as a tool provided by a supporting team, rather than a lens through which to understand the business and produce value, the organization will limit itself and lag others who integrate technology into the core.”
Some think the AI strategy and digital transformation strategy should be separate but aligned, including Manish Mistry, CTO at digital engineering services company Infostretch.
“An enterprise’s digital transformation strategy generally is dictated by the business objectives, with targeted goals and outcomes at the core. Companies are still trying to figure out what the actual business impact of AI is, and that depends on the maturity of the company and the industry in which it is evolving,” said Mistry. “A lot of businesses are still trying to figure out how to collect data, what type of data to collect and how to integrate it. Some companies are capitalizing both on their AI strategy and DX strategy, but the reality is not all of them have reached that level of maturity. They are side-by-side initiatives.
