Gartner analysts have presented several strategies at the 2024 IT Symposium/Xpo in Barcelona to help CIOs overcome the challenges associated with delivering value through AI.
Gartner analysts Alicia Mullery and Daryl Plummer presented their recommendations to CIOs at the Gartner IT Symposium/Xpo.
Here are key insights for CIOs aiming to maximize AI’s potential:
# Align AI Ambitions with Organizational Needs
Organizations with moderate AI ambitions can adopt an “AI-steady” approach, progressing methodically and focusing on controlled growth. On the other hand, businesses in sectors rapidly transformed by AI should adopt an “AI-accelerated” approach, focusing on fast, transformative outcomes.
To achieve consistent business value, CIOs should treat AI initiatives as a portfolio. Invest in different levels of AI benefits, from productivity gains to new revenue streams, while balancing associated risks and rewards.
# Cost Management as a Core AI Strategy
With over 90 percent of CIOs expressing concerns over AI costs, it’s essential to understand the pricing models of AI services, including the scalability of generative AI (GenAI) costs.
Run proofs of concept not only to test technology but to assess how costs will scale. This approach helps avoid budget overruns, which Gartner warns can be as high as 1,000 percent due to scaling miscalculations.
# Implement ‘Tech Sandwich’ Architecture for Data and AI Governance
Manage Decentralized AI and Data: As AI capabilities spread beyond IT control, CIOs should adopt a ‘tech sandwich’ approach. In this model, centralized IT data and AI sit at the base, decentralized sources at the top, and trust, risk, and security management (TRiSM) technologies in between.
For AI-accelerated organizations, implement TRiSM to create a security layer that ensures data safety, privacy, and trust across distributed AI initiatives. This technology stack is essential for scalable and secure AI deployment.
# Mitigate Behavioral Impacts on Employees
Address AI’s psychological and productivity impacts on employees, as reactions can vary widely. CIOs should consider both positive and negative effects, such as over-reliance on AI or resentment toward AI-augmented roles.
Proactively manage behavioral outcomes by assigning ownership to monitor how AI affects employee satisfaction and work culture. Behavioral change management should be treated with the same diligence as business and technology outcomes.
CIOs can foster sustainable AI growth, balance costs, and support their workforce, ultimately positioning their organizations to succeed in an AI-enabled landscape, Gartner analysts Alicia Mullery and Daryl Plummer said.
