The key to AI success is planning

Jonathan Boakes at Infinum explains why you should walk before you run with AI

 

In the past year, AI has dominated conversations to such an extent that it claimed the title of “the word of the year” by Collins Dictionary. 2023 marked the turning point where AI stepped into the mainstream, despite its existence since the 1950s, and where Chat GPT gained immense popularity.

 

During this period, the world witnessed its inaugural AI safety summit, accompanied by a surge in new regulations, while businesses rushed to embrace the AI wave.

 

Undoubtedly, we stand on the brink of an AI revolution, with limitless potential benefits for businesses. However, leaping onto the AI bandwagon without a coherent plan can lead to disaster right from the start.

 

As we navigate 2024, businesses must resist the allure of AI FOMO. It’s crucial to thoroughly evaluate the advantages AI can bring, learn from past digital failures, and craft a well-structured strategy.

 

Diving blindly into AI

Infinum research shows that 78% of businesses intend to invest in AI in 2024, yet a worrying 73% admit to being unprepared to integrate AI into their operations. 

 

Even more alarming is the revelation that 65% of these businesses struggle with utilising their data effectively for driving digital transformation.

 

Fundamentally, success in AI hinges solely on the quality of the input data. So, before integrating AI, businesses must return to basics.

 

Start by examining, or for those experienced, re-examining, all available data, whether it’s on customers or operations. Identify all data sources—CRM systems, spreadsheets, or IoT devices. And finally, conduct a thorough data audit with a focus on cleansing the data.

 

Only then can businesses uncover valuable pain points or areas that actually need improvement, be it inefficiencies or bottlenecks. This avoids AI for the sake of AI.

 

Learning from digital failures 

Our recent studies also reveal that 70% of UK businesses investing in digital products over the past five years encountered failures; that’s approximately 3.8 million businesses facing setbacks.

 

Experience shows us the primary reasons for digital failures across industries are technical issues, budget inadequacies, stringent timelines, lack of strategic planning, and failing to meet user expectations. 

 

So, before delving into integrating new technology, firms must revisit past projects whether failed outright or fell short of expectations—to fully rectify future strategies.

 

Though conducting digital post-mortems isn’t fun for anyone, it’s integral for future success in the AI age. 

 

Key ingredients to success 

Three cardinal rules especially relevant in AI projects include rigorous testing, defining clear goals, and prioritising the end user.

 

Thorough testing is indispensable for early bug detection, ensuring product reliability, and validating AI data accuracy, steering clear of ’garbage in, garbage out.’

 

Investing time in strategic planning behind Ai stands as the lowest-risk, highest-value move to make. To do this organisations should focus on its tangible business benefits.

 

Many businesses boast about integrating ’cutting-edge AI,’ but this term lacks substance today. Always keep the end user at the forefront during product development. This entails market research, actively seeking and integrating feedback through surveys, and consistently enhancing the product.  

 

Navigating regulations 

Today, navigating new and evolving regulations is fast becoming another cardinal rule. Many businesses are uncertain about the dos and don’ts when it comes to AI. 

 

Don’t shy away from curiosity—raise questions. Engage in industry dialogues and consider joining relevant bodies to track AI regulations in your sector. In short, don’t be afraid to stick your head above the parapet.

 

Remember, you’re also not alone. Focus on forming valuable partnerships, collaborate with consultancies or external experts, and consider hiring or training internal talent in data science, machine learning and AI.

 

Progressing into 2024

In the past year, AI has made remarkable progress: enhancing medical analyses, aiding early disease detection, addressing climate change, countering cyber threats through pattern analysis, and advancing autonomous vehicles.

 

It’s evident that the opportunities presented by this technology are as vast as they are complex. As we move forward, the main challenge for businesses is to responsibly harness the potential of AI, ensuring they implement the right strategies from the get go. This technology should remain a force for good, driving innovation that benefits everyone.

 

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Jonathan Boakes is Managing Director, UK at Infinum 

 

Main image courtesy of iStockPhoto.com