Senior Leaders Offer 5 Lessons on AI Adoption

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Senior Leaders Offer 5 Lessons on AI Adoption

Many small- to medium-sized insurers are still grappling with the concepts of artificial intelligence (AI) and its power to transform the business.  Some are beginning to incorporate big data into workflows, and others are using AI to increases outreach, customize customer service efforts, improve processes and boost productivity. It’s clear that some are farther along the path to implementation than others, but, according to Boston Consulting Group, most still face significant challenges.  Tech Republic published a recap (see below) of a report in which Boston Consulting revealed the results of interviews with more than 20 executives at companies with major digital programs underway to get a sense of where businesses across all lines of business stand when it comes to AI implementation. Following are the top five “lessons to be learned” from the executives already in the trenches:

  1. CEO support is necessary, but insufficient

Digital transformation projects require full CEO support for success over the long term. However, they also require support from the executives who control budgets, personnel decisions, and day-to-day priorities and resources, the report noted. Support from these executives can be the difference between success and failure in these initiatives.

  1. IT applications come before infrastructure

Digital transformation can’t succeed without an IT and data overhaul, according to the report. Even if organizations have not perfected their advanced IT architecture, they should still begin building applications and services to see at least some of the benefits early on, even if implementation is not elegant. Taking this approach can provide focus and momentum, and avoid drawn-out and disappointing system rollouts, the report noted.

  1. Digital efforts take talent, technical skills, and culture

Digitally transforming companies are working hard on people issues, ranging from developing technical skills to forming new partnerships that access talent, the report found. However, many organizations still find it difficult to find the right talent like developers and data scientists to support their digital ambitions. Creating a culture that embraces change is another major challenge, and companies are focusing on fostering collaboration between IT and the business to do so, the report found. Many are turning to Agile methods in their culture change efforts to improve speed and flexibility, it noted.

  1. Digital often requires an ecosystem

Organizations will increasingly need to adopt an open innovation and ecosystem approach to acquire the needed data, technologies, and services, according to the report. This approach can often lead to more and better data, which can translate to better results, it added.

  1. Speed wins

Executives are highly concerned about how fast they can get digital programs up and running, the report found. When asked what these leaders might have done different to get ahead in their digital transformation efforts, the majority said they wished they had started sooner, and moved faster.

Image courtesy of Tech Republic