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IF Insights: How companies should & should not deploy artificial intelligence

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Using artificial intelligence throughout the whole development lifecycle yields real benefits

Even though almost half of office workers now use generative artificial intelligence daily, less than one in four CEOs say the technology has produced the expected benefits at scale. What is happening?

The reason for this could be that generative AI was first marketed as a productivity tool, which made it closely linked to workforce and cost reductions. Recognising the danger, 42% of workers polled in 2024 expressed concern that their position might disappear within the next ten years.

It makes sense that there would be more opposition than excitement if there was no training or upskilling to fully utilise the technology. An “immune response” may occur in organisations, where managers and staff alike oppose change and seek explanations for why AI “won’t work” for them, much like antibodies fending off a foreign body.

One possible explanation for this could be that generative AI was initially promoted as a tool for increasing productivity, which strongly associated it with workforce and cost savings. 42% of workers surveyed in 2024 acknowledged the risk and voiced worry that their job might be eliminated in the ensuing decade.

“If there was no training or upskilling to make the most of the technology, it makes sense that there would be more resistance than enthusiasm. In organisations, managers and employees may have an immune response in which they resist change and look for reasons why artificial intelligence won’t work for them, like how antibodies protect against an alien invader,” say Vinciane Beauchene, Managing Director and Partner at BCG (where she serves as Global Lead on Human x AI) and Allison Bailey, a senior partner and Managing Director at BCG (where she serves as Global Vice Chair for People and Organisation Practise).

However, study reveals that regular users of generative AI can already save five hours per workweek, which they can use to pursue new projects, continue experimenting with the technology, work with colleagues in novel ways, or just finish earlier. Therefore, the task for company executives is to highlight these possible advantages and offer advice on where to reallocate one’s time to optimise value creation.

“A global healthcare provider recently implemented generative AI for all 100,000 of its employees. For all employees to benefit from the technology, it developed a scalable AI learning programme with three goals: compliant usage; a wide range of artificial intelligence tools for all work scenarios; and high AI literacy throughout the company. Because of this all-encompassing strategy, the business quickly increased both employee satisfaction and productivity,” Beauchene and Bailey stated.

However, adopting artificial intelligence is about more than just saving time. It’s about reimagining work for the good of the company and its workers. Businesses that view generative AI as a time-saving tool are more likely to pursue piecemeal use cases, such as “10 minutes saved here, 30 minutes saved there,” which won’t have a significant effect on the company’s overall operations. Small-scale AI applications that result in diffuse productivity gains are, after all, challenging to reinvest in or record on a profit and loss statement.

Instead of radically enhancing the way work is done, organisations run the risk of optimising discrete tasks if they don’t have a comprehensive plan to restructure their core processes around artificial intelligence.

Too frequently, the outcome is that bottlenecks are merely moved to different stages of the value chain or process, which reduces overall productivity increases. In software development, for instance, an AI that expedites coding may result in more difficult debugging or other delays, offsetting any efficiency gains.

Using AI throughout the whole development lifecycle yields real benefits. An even more significant problem is brought up by this example: Too many businesses aim for scale without first rethinking the workflows and structures required to capitalise on cumulative gains.

The usual outcome is a lost chance since time savings that are not carefully reinvested eventually evaporate. Companies should pursue a few major transformational projects aimed at reimagining work for people instead of taking a let-a-hundred-flowers-bloom approach.

To realise the “golden triangle” of value—productivity, quality, and engagement/joy—generative AI holds great promise. Rethinking workflows to remove inefficiencies, enhancing decision-making and processes to promote creativity and innovation, and improving work rather than automating it are all important components of an AI strategy.

Artificial intelligence is more likely to be enthusiastically embraced by workers when it reduces monotony, stimulates creativity, and speeds up learning. When upskilling is properly addressed, technology will enhance human potential, increasing job satisfaction and workplace engagement.

By prioritising engagement and experience quality in addition to productivity, organisations can shift from a cost-driven viewpoint to one that adds greater value for the company, its workers, and its clients. If businesses implement a thorough plan for implementing AI, it can be much more than just an automation tool.

There are five imperatives that company executives should remember. Prioritising the largest value pools with the most clearly defined business cases for incorporating artificial intelligence is the first step. The second is not just optimising work, but reimagining it. AI should not only automate a few steps but also completely change workflows.

Third, managers need to spend money on upskilling so that everyone is aware of the capabilities of the technology. Fourth, the golden triangle should be the golden rule for businesses because it strikes a balance between quality, productivity, and employee happiness.

Finally, companies ought to gauge value in ways other than cost reductions. The most successful companies using generative AI will monitor how it affects not only operating expenses but also employee empowerment, agility, and new revenue streams.

By following these guidelines, businesses can use artificial intelligence as a tool for innovation rather than merely increasing productivity. They will also set the standard for the upcoming business era in the process.

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