Today’s business landscape is dominated by innovation. Big Tech companies like OpenAI and Google have just released new versions of their AI models, and the race is only going to pick up speed. In this context, organisations are in a position where they must navigate change in real time while mapping the path for the future.
In the space of 18 months, Generative AI has become a huge transformative force in every corner of business and society. It will undoubtedly continue to revolutionise the way we work and live. For business leaders, the question isn’t if, but how and when AI will be integrated into their organisations. Understanding and communicating to shareholders the value of Generative AI can be difficult, but companies that don’t address this and delay adopting AI risk falling behind competitors.
Research shows that the majority (75%) of businesses are either already employing Generative AI or plan to do so in the next year, but less than one in ten (8%) describe widescale use across their company. It’s clear that at the moment, leaders and boardrooms are having trouble grappling with and translating AI’s vast potential into actionable strategies that directly align with their business objectives.
However, this challenge shouldn’t prevent them from taking a proactive approach. By championing Generative AI within the boardroom, companies can unlock a competitive advantage and embark on their AI journey.
Here are some learnings on how leaders can steer this conversation:
1. Present Generative AI as a Strategic Advantage
Recent advancements have taken Generative AI beyond theoretical discussions. Take OpenAI’s Dall-E 2, which generates photorealistic images from text descriptions, while NVIDIA’s GauGAN 2 creates landscapes based on user prompts. Highlight these real-world applications to employees, in order to dispel scepticism and demonstrate Generative AI’s potential impact on your organisation.
Narrow this conversation and quantify the benefits Generative AI can bring to the organisation. A McKinsey report estimates AI could contribute up to £13.2 trillion to the global economy by 2030. Translate this to your business, people, and consumer scenarios: Could Generative AI-powered product design shorten development cycles? Could it personalise marketing materials for targeted customer segments? Could it evolve your customers’ experiences daily? Could it bring efficiency to some of your processes?
Generative AI has a huge impact across several different sectors, including yours. It’s a matter of identifying a problem or opportunity you want to tackle and kick-starting the learning process.
Embrace your board on this learning journey. The majority of the companies are at this stage right now. Show your board how Generative AI can directly contribute to the company’s strategic and financial goals.
2. Educate the board on the capabilities and risks of AI
There is still an urgent need for directors with AI expertise on corporate boards. So, educating your board on Generative AI’s capabilities and potential risks is crucial. Explain how these models can analyse vast datasets, uncover hidden patterns, and generate creative text format code or images.
Transparency is key. Address concerns about bias in training data, the potential misuse of generated content, and the impact on the company’s team. Discuss strategies to mitigate these risks, like designing a robust governance strategy around Generative AI utilisation inside of the company, implementing ethical AI frameworks, upskilling your people, and other measures. By demonstrating a deep understanding of Generative AI’s complexities, you build trust and position yourself as a thought leader in this space.
3. Plan with clear phases and outcomes
Don’t overwhelm the board with a full-scale Generative AI rollout. Propose a phased approach with clear milestones. Start by identifying a pilot project with a well-defined scope and measurable outcomes. Make it clear that, like all other companies, it’s a learning process, so it’s important to start small.
Here’s where building internal champions comes in. Secure buy-in from key stakeholders across departments that will champion the project internally and provide insights throughout the process. Demonstrating success on a smaller scale builds momentum and a data-driven case for further investment.
4. Address ethical concerns from the start
Ethics is one of the main concerns around Generative AI. So, explain how you plan to address those immediately, including responsible usage of the technology, adhering to data privacy regulations, and ensuring generated content is unbiased and authentic. Highlight your commitment to building a robust, trusted AI framework that aligns with your company’s values and industry best practices. Consider partnering with external experts in AI ethics to bolster your plan and navigate complex challenges.
5. Manage expectations on ROI
Highlight areas where AI can create cost savings or boost revenue. According to a report by Autonomous Research, AI technologies could reduce operational costs for financial services companies by up to 22%, amounting to savings of $1 trillion by 2030.
Be ready to answer the question: How long should they expect a meaningful return on investment and what will that look like?
6. Invest in training and programmes to upskill employees
Generative AI’s arrival doesn’t spell job annihilation. Instead, it requires a shift toward human-AI collaboration. Invest in upskilling initiatives to prepare your workforce for this new reality. Focus on training programmes like data analysis, critical thinking, and the skills required to manage and interpret AI outputs effectively. By emphasising the potential for job creation in areas like AI governance, responsible development, and human-machine collaboration, you can alleviate your team’s anxieties and ensure a smooth transition. In the coming years, the most valuable talent will be those who can work effectively alongside Generative AI.
Generative AI presents an incredible opportunity to revolutionise industries. As tech leaders, we must champion its responsible adoption within our companies. We can position ourselves at the forefront of this technological revolution by framing the conversation strategically, educating the board, and building a well-defined plan. Remember, Generative AI is not a silver bullet but a powerful tool. Its success hinges on effective leadership and responsible implementation.
Boards act as the beacons of light for the businesses forging the future. It is our responsibility as tech leaders to provide them with the information and insight needed to successfully navigate this rapidly changing technological landscape. By having these open conversations now and educating boards about Generative AI, businesses can harness the transformative power of AI and pave the way for a brighter and more resilient future.
