Tagged with: #ai-strategy

I’m regularly asked how to use the AI Stages of Adoption, Five Pillars, and Well-Advised together practically. In this article I explain how these three mechanisms integrate to address the unique challenge of AI’s multi-speed adoption across different business functions. I provide a straightforward approach for boards to coordinate AI transformation whilst managing the governance complexities that emerge when different parts of the organisation advance at different speeds.

Even the most meticulously crafted AI business case can fail at the final hurdle - securing Board buy-in. With research showing 88% of AI pilots never reach production, effective presentation isn’t just about gaining initial approval but establishing the path to full implementation. This final article in my series explores how to present AI investment proposals to Boards, addressing their six key areas of concern while building the stakeholder confidence necessary for successful transformation. By understanding Board dynamics, anticipating objections, and structuring presentations that balance strategic vision with implementation rigour, you can navigate the critical journey from business case to production-scale AI.

Organisations are demanding disciplined, comprehensive business cases for AI initiatives that balance traditional financial rigour with frameworks capturing AI’s unique value creation patterns. In this fourth article in my series on AI business cases, I provide a step-by-step guide to building AI business cases that secure approval and set the foundation for successful implementation.

Finding high-value AI opportunities requires looking beyond the obvious. While most organisations gravitate toward trendy applications like chatbots, the most impactful AI initiatives often lie in less visible but more strategically significant processes. By applying a structured evaluation approach that examines process characteristics, strategic alignment, and implementation feasibility, boards can identify AI investments that deliver transformative value across multiple business dimensions. This systematic method ensures scarce resources target opportunities with the greatest potential impact rather than those with merely the highest visibility or short-term appeal.

Building on my previous thoughts about why traditional business cases fail for AI investments, this article explores what I consider to be the essential building blocks for a more effective evaluation approach. This foundation provides boards with the tools to assess AI’s unique value creation patterns while maintaining financial discipline - helping leaders confidently navigate investment decisions that conventional models simply cannot adequately evaluate.

In today’s AI-driven landscape, traditional business case methods fall short when evaluating AI investments. Drawing from my experience developing AWS’s cloud business case tools, I explore why conventional ROI models struggle with AI’s parallel, multi-speed adoption patterns. Unlike cloud’s sequential journey, AI initiatives exist simultaneously across different maturity stages, creating valuation challenges that standard metrics can’t capture. Boards need new evaluation approaches that account for AI’s diverse cost structures, varying timelines for returns, and how investments in one area often enable value in entirely different parts of the business.

As I discussed in my article on building and managing AI-capable teams, organisations face a critical challenge in acquiring the right talent for AI transformation. This reminds me of the early days of cloud adoption, when I advised enterprises on their migration strategies. Back then, I witnessed the same scramble for scarce talent, which led me to advocate strongly for upskilling existing teams rather than relying solely on external hiring.

In my previous article, Transforming the Board: Using Decision Analytics for Strategic Advantage, I introduced the concept of AI-powered decision analytics as a transformative approach to board decision-making. I explored how these capabilities can help directors move beyond traditional backward-looking metrics to embrace predictive indicators that model potential futures and enhance strategic decision-making.

In my article The Board in the machine, I argued that “Boards will find that there are no barriers to making the right decisions at the speed of light”. More recently, in AI is transforming governance: Six key Boardroom priorities, I observed that boards “are moving from overseeing hundreds of decisions made per day to millions made per second”. This acceleration of business decision velocity presents both an unprecedented challenge and opportunity for Directors and the Boards they serve.

The EU AI Act, which came into force on August 1, 2024, establishes significant penalties for non-compliance, including fines of up to €35 million or 7% of global annual turnover for serious violations. As regulatory frameworks for artificial intelligence rapidly evolve worldwide, Boards face a new imperative: navigating complex compliance requirements while maintaining the innovation speed necessary to compete.