An interesting read about the cultural benefits of Artificial Intelligence in the enterprise. Report based on 2,197 managers and interviews with 18 executives from 29 industries and 112 countries.

Key insights

” Artificial intelligence can generate cultural as well as financial benefits for
organisations…..more than 75% also saw improvements in team morale, collaboration, and collective learning.”

I agree. AI projects should be developed as a foundation for a business and endorsed by everyone. Having an AI strategy can strengthen direction and unify business culture. There are huge benefits if done correctly.

” Respondents who use AI primarily to explore new ways of creating value are far more likely to improve their ability to compete with AI than those who use AI to improve existing processes. “

The key is to embrace AI at a larger level to create bigger and better value. Some companies are going further and using AI to develop newer business models and revenue streams, i.e. Manufacturing companies developing AI for a service model.

” Respondents who said they use AI primarily to explore were 2.7 times more likely to agree that their company captures opportunities from adjacent industries because of AI than respondents who use AI mainly to improve existing processes. “

By looking outward, you are being receptive to new opportunities. The act of doing this also aligns with fresh thinking.

“For CBS, AI provided both the opportunity and the means for re-examining fundamental assumptions about business operations and organisational effectiveness. “

You can re-evaluate your fundamental objectives by post-analysing old research and KPIs and forming new ones. A project without KPIs is like a car without a steering wheel.

” 64% of companies that have integrated AI into their processes say that their use led to changes in their KPIs. In some cases, AI solutions directly reveal new performance drivers. “

AI insights are powerful as they can transform the fortunes of an enterprise. Every company should focus on gaining the best insights.

AI USE > Improve > TEAM CULTURE > Improve > EFFECTIVENESS > improve >

Interesting analysis. Developing AI, building team culture, and focusing on effectiveness create a cyclical process of increased improvement.

Paul Pallath (global technology head of data, analytics, and AI at Levi Strauss & Co) says about the importance of training to improve adoption and trust. This is a perfect point; the more people understand the aims, the higher the probability they will adopt and help drive it further.

“Cultural benefits emerge when teams improve decision-making and efficiency with AI. These benefits would not have emerged if the team’s culture had not embraced the AI solutions in the first place. When teams become efficient and make better decisions because of AI, several aspects of culture also improve, including collective learning, collaboration, morale, and clarity of roles.”

Teams will improve decision-making if you address an AI project head-on and implement it correctly with a clear, unified focus. This is an iterative process of engagement; the improvement has a direct effect on the culture.

” 87% of teams that improved their efficiency and decision quality with AI also improved their collective learning. “

This shows that the inertia of AI can then fuel further learning and improvement.

” At PepsiCo, executives view AI as a strategic capability. They also acknowledge that making full use of that capability goes hand in hand with strengthening the company’s culture. “

Thinking of AI as a strategic capability focuses on the proactive nature of the technology. By working on this and the culture, there are tremendous benefits.

” Being a “company of consequence” in the future may require all employees to work with AI to “out-solve” competitors with new ways of creating value.”

Using AI as a tool kit is a good analogy, as you can select the best tools for your organisation. Different AI tools can be implemented as the organisation evolves its AI strategy.

“64% of the organisations that use AI extensively or in some parts of their processes and offerings adjust their KPIs after using AI…….Organisations that don’t make AI-driven adjustments to their KPIs. Sixty-six per cent of respondents who agreed that their KPIs have changed because of AI also saw improvements in team-level collaboration. “

The power of AI can expose many new opportunities as well as KPIs.

” 57% of organisations that made few changes in business processes reported an increase in morale, while 66% of organisations that made many changes reported a rise in confidence. “

Change is a huge factor in increased morale. Using AI can initiate company-wide change, which could transform a company.

” A strong culture helps encourage AI adoption, and adopting AI can strengthen organisational culture. This cyclical relationship can be built through numerous individual process improvements to enhance the corporate culture. “

The power of AI can help strengthen a company’s culture, which improves AI. The secret is to keep this in a tight iterative cycle.

” AI becomes a managerial tool to align micro behaviour with broader goals, including societal purpose, equity, and inclusivity. “

The act of thinking and implementing AI can help spark wider thinking. It should be seen as transformational. Many levels will add value to your team. Getting the AI strategy right and getting everyone to adopt it for ultimate success is good.

” Our research demonstrates a strong and multidimensional link between AI use and organisational culture. But it’s also clear that flourishing AI solutions can strengthen corporate culture at both the team and organisational levels. “

The key is to look at your AI and culture. They should harmonise in a virtuous cycle if you manage both, giving increasing rewards. If done correctly, you should be able to establish new KPIs for measuring your effectiveness.

Overall

This is an excellent report. We often don’t hear about the intangible benefits of AI within an organisation. This highlights some of the significant benefits of AI.

You can get the report here (FREE)

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