Despite the frequent pessimistic opinions that dominate the news media, the early 21st century business climate does not appear to be substantially different from the prevailing business climate in the mid to late 20th century. Moreover, numerous global wars caused incalculable economic impact and population disruption in previous centuries, during the 1600s – 1800s (Africa, Europe, North America, South America, Caribbean, South Pacific) and the 1910s – 1970s (Africa, Asia, Europe, North America, South Pacific). History indicates that business conditions have never seen some rational, golden period anywhere on earth for a sustained period of documented human history.

So, figuring out how to access whatever resources that can adequately sustain life in one’s society became a hallmark of life in every century that’s hosted all forms of human life and animals as well. That drive caused men to sometimes travel hundreds of miles to prominent cities that launched what we now call major public works projects, such as the ziggurats in Mesopotamia, the Great Wall in China, the Panama Canal in Central America, the Suez Canal in Egypt and the hydroelectric dam on the Blue Nile that was completed by Ethiopia in 2025 (and has more than twice the electrical capacity of the Hoover Dam in Utah).

Economic volatility, a turbulent political landscape, populations on the move, whether motivated by money or war, are an ongoing theme in history. Technological developments, from the invention of the wheel to the invention of the telephone, the invention of the computer (the room-size originals and the personal computer) and now the rapid rise of Artificial Intelligence powered technology tools are disrupting and reshaping how business operations are carried out, in ways we may simultaneously abhor and appreciate.

Many company leaders are said to be rethinking their staffing needs and betting that AI tools can get the work done more efficiently and less expensively than their employees. The advent of online shopping, most notably since the 2020 pandemic shutdown, has resulted in store closings and sizeable lay-offs at CVS, bankruptcy filings at the august Saks Fifth Avenue and the outright closure of Forever 21, JoAnn Fabrics and Rite Aid. Bed, Bath and Beyond, which has closed nearly all of its retail locations, is attempting a come-back. The number of business leaders willing to embrace AI tools, viewing them as innovative solutions capable of performing core operational tasks more accurately, quickly and considerably less expensively than human labor, is on a steady upward trend.

Yet reality shows a different result produced by the typical outcomes associated with AI-powered tech tools. Recent research has shown that when AI-associated operational outcomes are evaluated, achieving a meaningful positive impact resulting from AI technology use is elusive. For example, research shows that 95% of generative AI pilots fail to produce measurable returns. Furthermore, while most U.S. companies are reported to be using AI, only 39% see any impact on company earnings—and the revenue increases are underwhelming. Just 4% of companies have implemented AI capabilities that consistently create the desired value. According to Gartner, fewer than half of AI-powered digital initiatives meet their business objectives.

AI implementation requires the right strategy

Business analysts say there are a number of obstacles that can undermine the plans of company leaders when they attempt to determine where and how to implement AI. A close look at outcomes data typically reveals that most organizations approach AI tools as technical upgrade solutions—they see AI as a tactical solution to a tactical objective. However, they would be much better served to recognize that AI technology is best optimized when you back up and look at the big-picture view, that is strategic, of what the process means to your company and how an AI-powered tool might enhance that process.

In other words, thinking that merely adding one or more AI tools to your existing business processes is probably not going to work. Reexamining your workflows is your best first step. Proposing ambitious transformation initiatives while critical data is locked in outdated and perhaps unusable formats will result in frustration.

Successful strategy, whether its purpose is to launch a new product line or introduce AI technology to your business operations, depends on four elements working harmoniously together—the right tools, the right internal partnerships and relevant data and insightful interpretation of the information. Good strategy has always been a process that invites study and learning, decision-making and adjusting in response to changing conditions. Problems you encounter with AI implementation may not be the AI-powered tool, but the lack of a good strategy.

AI tools that create value

So how can you figure out where AI-powered technology do the most for your business? That is among the most decisive questions you can address this year. Just always keep at top of mind that any AI tools you plan to introduce must deliver measurable positive impact to the core business processes and improve decision-making and long-range planning.

• Marketing and Sales (Lead generation, marketing content creation, audience segmentation, targeted advertising)
• Customer service (chatbot and virtual assistant-handled queries, service personalization)
• Data analysis and operations (predictive analysis, inventory management)
• Finance and accounting (faster closing of monthly books, risk management, budgeting and financial planning)
• Cybersecurity and fraud detection/prevention

Data that is AI-ready

The accessibility, usability and relevance of your company data is essential to the successful implementation of AI-powered tech tools. Remember that AI is trained by the data you feed it—that’s how it models, reveals insights and drives automation. Good data ensures integrity — the proof that what a company claims matches what it reports and does. Garbage in, garbage out, as you already know.

Frequently, critical data is housed—trapped—in floppy disks and hard-copy documents that, obviously, no AI-powered tool can access. Incorporating AI tools to your organization—and, really, even if you don’t—business leaders are advised that connecting financial, risk and sustainability data is vital in so many ways. When leaders have connected data they can trust, they can leverage AI to validate higher-stakes decisions with confidence.

With the right tools, partnerships and data infrastructure, strategy becomes dynamic; leaders still govern decisions, but AI generates options, detects risks early, spots emerging trends and recommends new directions based on real-time insights.

Thanks for reading,

Kim

Image: ©U.S. Army (2024)