A research by Accenture said business leaders should consider 8 strategies to prepare for a successful future with AI (artificial intelligence).
AI strategies for CXOs
AI strategy and leadership – attaining value from AI will demand recognition and action from the top of the company; therefore, the benefits must be made tangible to the C-suite and a roadmap is essential.
Reinvent HR into HAIR – the Chief HR Officer’s role will not only be about managing human employees, but will evolve to also manage human-machine interaction — or Human AI Resources (HAIR).
Learn with machines – to adapt their businesses to the changing nature of learning and employee training, business leaders must focus on the needs of their workforces, particularly in the area of agile skills development.
Appoint a chief data supply chain officer – this position will be needed to construct an integrated, end-to-end data supply chain.
Create an open AI culture – trust, openness and transparency are key for human and machine relationships to work well; business leaders must shape the corporate culture and guidelines to minimize the risks of a hybrid workforce while maximizing the opportunities.
Take the crowd into the cloud – the next phase of innovation will combine crowd-sourced data in the cloud with AI capabilities to create new and disruptive business opportunities.
Step beyond automation – with recent strides in AI, companies need to take a step beyond to harness the intelligence of dynamic, self-learning and self-governing machines.
Measure your return on algorithms – Unlike traditional assets that depreciate over time, AI assets gain value as time passes so CFOs will need new financial metrics to properly assess the “Return on AI,” which could include the value generated from each algorithm or a combination of initial outlay and ongoing costs.
“By optimizing processes with intelligent automation, augmenting human labor and physical capital, and propelling new innovations, AI can drive dramatic and long lasting profitability and economic growth,” said Mark Purdy, managing director, Accenture Research.
Impact of AI
Businesses that apply AI could increase profitability by an average of 38 percent by 2035. The introduction of AI could lead to an economic boost of $14 trillion in additional gross value added (GVA) across 16 industries in 12 economies.
information and communication, manufacturing and financial services are the three sectors that will see the highest annual GVA growth rates in an AI scenario, with 4.8 percent, 4.4 percent and 4.3 percent respectively by 2035. This translates to an additional $6 trillion in GVA in 2035 for these three sectors.
Labor-intensive sectors such as education and social services —where productivity growth is traditionally slow – will see a significant increase of $109 billion and $216 billion in GVA respectively.
In labor-intensive sectors, such as wholesale and retail, AI augments the human workforce, enabling people to become more productive, leading to a profit increase of almost 60 percent.
In capital-intensive industries such as manufacturing, AI powered machines will eliminate faulty machines and idle equipment, delivering rising rates of return, resulting in profit increases of 39 percent by 2035.