Imagine a future where you lead, not follow
The emergence and accessibility of generative AI has caused many companies to focus on enhancing productivity and efficiency. While these possibilities are the easiest to identify and implement, those focusing on productivity alone will soon be left behind. Instead of stopping at productivity, companies need to define their long-term desired value and use the resulting increase in time and money as an opportunity to differentiate and disrupt.
We view these opportunities through the lens of the Three Horizons Framework. Using this framework will allow you to capitalize on new opportunities and productivity gains unlocked by generative AI so you can be a disruptor in your industry.
What we hear of generative AI in the news is all about speed and efficiency—how quickly ChatGPT can create content or GitHub Copilot can write code. How generative AI virtual assistants can help us draft meeting notes, create PowerPoint slides, and ultimately save us time. Currently, most organizations are focusing on productivity and proving value by saving time and money. In fact, 70% of executives surveyed believe AI can unlock productivity enhancements.
While these productivity gains are beneficial, they still require a human element. Whether written by ChatGPT or a person, a first draft is still a first draft. There still needs to be a person behind the AI to verify accuracy, ensure security, and provide additional customization.
Integrating technology with the work of humans is vital to any successful implementation, and removing this aspect risks your credibility as an organization by producing inaccurate—or even harmful—outputs.
One of the biggest mistakes your organization can make is to rely solely on productivity gains without knowing where to channel all that untapped value to differentiate your business. According to our research, 89% of executives believe that AI has the potential to unlock avenues of differentiation for their organizations. However, despite recognizing these possibilities, 72% admit they’re struggling to capitalize on the current pace of AI advancement.
Generative AI allows you to build on what you already do well to separate yourselves from the competition—whether that means reimagining your products or delighting your customers with experiences they never thought possible. Understanding how to use productivity gains is critical to strategically differentiating your organization from your competitors.
A year ago, the term “generative AI” had yet to emerge in public conversation. Today, 86% of executives surveyed have invested in AI tools, training, and/or infrastructure. As this technology continues to evolve, every industry will face some level of disruption. We’ve already seen the average company lifespan decrease from 32 years in 1965 to 21 in 2020. There’s likely already a startup in your industry that’s further along on its differentiation and disruption journey because it was able to move faster without legacy systems or processes.
Transformation isn’t a singular process, and the Three Horizons Framework isn’t linear—different aspects of a business will move at different paces according to their respective abilities, needs, and priorities. The challenge becomes managing your company’s AI evolution with both sustainability and adaptability in mind.
So what do you do with those previously untapped resources? Here are some questions to consider:
How is your organization using generative AI to improve quality and security?
How are you differentiating your product offerings?
What business models are worth considering that once seemed out of the realm of possibility?
Are you enhancing your customer experience? How?
Where and how are you creating operational efficiencies?
How are you reskilling your teams to maximize talent?
