The Gen AI Imperative: Know-How to Take the Lead

In this episode of the Business Excelleration® Podcast, Kyle McNabb, Vin Kumar and Andy Warzecha delve into the transformative realm of generative artificial intelligence (Gen AI). They draw upon insights from client organizations, revealing their experiences, plans and strategies for implementing Gen AI. The discussion outlines different levels of Gen AI maturity, emphasizing the critical importance for organizations to adopt a holistic approach now or risk falling behind.

Welcome to The Hackett Group’s “Business Excelleration Podcast,” where week after week we hear from experts on how to avoid obstacles, manage detours and celebrate milestones on the journey to world-class performance. This episode is hosted by Kyle McNabb, vice president of Research and IT Advisory at The Hackett Group. He is joined by Vin Kumar and Andy Warzecha, leaders and key figures within Hackett’s Advisory Program.

To begin, Vin summarizes the extensive discussions The Hackett Group has had with various clients, prospects, and service providers regarding artificial intelligence (AI) and generative AI (Gen AI) strategies. He categorizes organizations into three main groups or camps. First is the wait-and-see camp, which are the organizations waiting for more clarity on Gen AI capabilities from their enterprise vendors who are rolling out AI features integrated into existing solutions. Next is the proof-of-concept camp. Organizations in this camp are successfully deploying AI in specific areas – like regulatory reporting – but are struggling with how to scale these projects across broader functions such as finance. Lastly, organizations within the breakthrough camp are seeing substantial benefits from AI implementations, tackling challenges that were previously deemed too costly or difficult to address. Then, Vin provides real-time examples of the breakthrough performance achieved by some organizations, including supply risk management.

Companies in the breakthrough camp are not just saving time and money, but are strategically reinvesting these resources into innovation and market expansion. This reinvestment is allowing them to gain a competitive advantage. Andy discusses the flaws in the wait-and-see approach, noting that while companies wait for vendors to deliver AI capabilities, competitors may be moving ahead with more transformative solutions. Vin and Andy discuss the importance of a holistic approach when adopting Gen AI. Waiting for enterprise solution providers to roll out AI features might not be effective because these features often come with constraints and may not be available across all industries or platforms. Organizations should develop their own strategies, focusing on building AI solutions that address specific use cases within their industry or function.

For organizations in a wait-and-see mode who are hesitant to dive into adoption, three key recommendations are offered. First,  it is crucial to educate teams about Gen AI, cutting through the hype to understand its real implications for the enterprise. Second, organizations should start experimenting with Gen AI by having team members explore and play with the technology to better understand its capabilities, risks, and limitations. Finally, organizations must now begin to develop a road map for integrating Gen AI into their operations. This includes planning for the next fiscal year and ensuring they have a strategy in place.

In closing, the conversation stresses the importance of taking a top-down approach to Gen AI implementation. Organizations are advised to focus on use cases that offer differentiation, rather than trying to address everything at once. Gen AI is an organizational imperative, and companies cannot afford to delay its adoption. We are in an unprecedented era where AI offers the ability to reimagine how knowledge work is done. Finally, Vin and Andy express their anticipation for what’s to come.

Time stamps:

0:49 – Welcome to this episode hosted by Kyle McNabb.

1:00 – The three camps of AI implementation.

2:46 – Examples of breakthrough performance. 

9:42 – Embracing holistic approaches.

14:16 – The risk of inaction in Gen AI adoption.

17:01 – Recommendations for organizations in a wait-and-see mode.

19:07 ­– Strategic and technological considerations.