Transform Technology Performance with Gen AI

On this episode of the “Gen AI Breakthrough” podcast, Kyle McNabb leads a discussion with technology transformation leaders Jay Ruffin and Salil Kulkarni about the evolving landscape of digital technology organizations. They explore how proactive engagement from CEOs and a focus on AI automation are driving productivity and competitive differentiation amidst market uncertainty. The conversation highlights the importance of trusting relationships between IT and business leaders in fostering innovation and achieving positive outcomes.

Welcome to The Hackett Group’s “Gen AI Breakthrough” podcast,where top experts give actionable artificial intelligence (AI) insights, expert advice and strategies to achieve breakthrough business performance. In this episode, host Kyle McNabb, head of Research at The Hackett Group^®, is joined by Technology Transformation leaders Jay Ruffin and Salil Kulkarni to discuss the evolving landscape of digital technology organizations.

The discussion begins with recent trends among technology leaders, noting that chief executive officers (CEOs) and chief information officers (CIOs) are now more engaged in digital transformation efforts than ever. Companies at the forefront of this shift are co-developing strategic road maps between information technology (IT) and business units, prioritizing projects based on value frameworks and investing heavily – up to 20% of their budgets – in automation. This strategic alignment and early-stage collaboration between tech and business are enabling organizations to achieve significant cost reductions, productivity gains, and competitive differentiation.

Top-performing Digital World Class^® organizations are not just meeting basic IT delivery benchmarks, but are proactively partnering with business leaders to drive measurable outcomes such as revenue growth and margin improvement. These companies treat innovation as a disciplined, strategic endeavor – investing more per user and dedicating a larger portion of their budget to emerging technologies like AI and intelligent automation. Their success is grounded in agile experimentation, executive-level buy-in (often with CEOs as advocates), and a shared sense of ownership between IT and the business. This cross-functional integration, supported by continuous communication, key performance indicator tracking, and risk-aware structures, enables these organizations to lead with confidence through uncertainty and market volatility.

Successful innovation depends on a disciplined, structured approach paired with strong leadership support and a culture of agility. CEOs and executives must promote innovation by encouraging calculated risk-taking and not the need for perfection. Organizations must also modernize and rationalize legacy systems to make room for innovation, aligning these efforts with business goals like efficiency, cost reduction, scalability, and especially cybersecurity. When modernization is approached collaboratively – with both business and IT leaders advocating for it – it becomes a powerful driver of change. Additionally, building scalable, AI-ready infrastructure and reskilling talent are critical steps for digital maturity and long-term success.

To accelerate AI adoption, CIOs and technology leaders are encouraged to lead by example –automating repetitive internal processes like service tickets or documentation to demonstrate early value. These efforts free up employee time, improve morale and lay the groundwork for more advanced initiatives focused on broader business outcomes. Storytelling with data is also essential; effective leaders use metrics to show how innovation supports both employees and the enterprise. By doing so, they foster internal alignment, secure investment and sustain momentum.

The episode concludes with a recap of key strategies that set Digital World Class^® organizations apart: strategic alignment, bold innovation, continuous modernization and a focus on measurable outcomes.

Time stamps

0:12 – Welcome to this episode hosted by Kyle McNabb.

1:15 – Leadership engagement and market uncertainty.

4:02 –  Trust in IT as a catalyst for innovation.

8:17 – Integrated leadership and early involvement.

11:36 – Structured innovation programs.

14:30 – Creating a culture that supports innovation.

16:13 – Modernization as a business imperative.

20:12 –  Leading AI adoption internally through demonstration.

22:44 – Closing thoughts and key takeaways.