What we don’t know but can do about AI

Sam Altman is happy to be wrong. At a conference in May the OpenAI CEO admitted that his early predictions of widespread job losses, particularly among entry-level white-collar jobs, hadn’t come to pass. There would be no “jobs apocalypse”.

“I’m delighted to be wrong about this,” he told the audience.

But if the head of an organisation at the forefront of the technology’s development can’t predict its impact, what hope for business leaders looking at potential AI investments and keen to get it right? 

The technology is maturing, its impact is uncertain and the market is in constant flux. Altman’s won’t be the last prediction that proves wrong. Yet most organisations still need to explore the uses of AI to avoid slipping behind, so they must live with and accept uncertainty. 

But there are things they can do to help manage the risks and maximise the benefits. 

Back to basics

The starting point is to ensure that whatever you build with AI rests on firm foundations. Businesses must be ready for AI before they can use it. That means understanding their data assets in terms of where their high-value and sensitive data is, what the quality of it is, and who has access and control over it.

It is not simply about ensuring that the data AI applications and tools access is clean and good quality – a prerequisite for outputs to have value; it’s also essential to put in place guardrails to ensure AI doesn’t do more harm than good. You don’t want AI making autonomous decisions or accessing data without appropriate controls or things could go very badly wrong.

To keep control and identify valuable use-cases, organisations need to appoint appropriate individuals to be responsible for the systems and data. It’s a technology transformation that can’t simply be a job for the IT director.

With guardrails in place, organisations can encourage innovation and experimentation but should still be cautious how they commit. Providers’ business models and pricing continue to evolve as the industry seeks profitability amid massive investments in data centres, servers and chip technology. The world’s four biggest tech companies are expected to spend over $700 billion this year.

For their customers, such investment underlines the potential seen in the technology, but also means there’s a danger of building new business models around tools whose long-term pricing is probably far from certain. As Goldman Sachs has noted, most businesses have yet to generate returns on their AI spending. That will change, but those taking a considered, planned approach, and learning from others may find shorter routes to an effective ROI.  

Defining your win

Indeed, there are many opportunities that AI is unlocking, but timing and approach are key. Successful adoption will be driven by robust business cases and controlled implementations, considering a range of possible tools and their appropriateness for your organisation.

The best technology initiatives begin with business needs and market opportunities, and include a clear plan to meet them. As we’ve seen with past technology transformation projects, organisations without a clear destination in view can fail to fundamentally change very much and end up with a fragmented landscape. 

Finally, businesses aiming high for their adoption of AI need to not only have clear goals in view, but be explicit about them and share these across their stakeholders. 

Systems upgrades, data and process improvements, and automation still deliver significant benefits in many organisations, and have a place alongside preparing for AI tools as they become increasingly effective. Being clear about the specific results desired and the new ways of working you envisage at the end – across people, processes and technology – is essential to ensuring the best investments are made. 

Having a clear view of the destination is the best way of helping you find the right route there. 

With an office in Cambridge, S&W brings local support and world-class expertise, working with businesses across industries to transform operations, enhance efficiency and empower better decisions. We’ve worked with businesses, individuals and their families across the Midlands for decades, forging long-term relationships and helping them build a better future. From AI to audits, we help individuals and organisations with complex needs, offering comprehensive services across tax, accounting, consultancy, corporate finance, restructuring and recovery. Discover how we can help you across every stage of business and every season of life. Start the conversation today with Emma Belsham.

Emma Belsham, Partner, Emma.belsham@swgroup.com
 

The views expressed in this Sponsor article are the author's own and do not necessarily represent those of Cambridge Tech Week.