WEBVTT 1 00:00:00.200 --> 00:00:02.640 To take full advantage of AI, 2 00:00:02.640 --> 00:00:06.960 leaders must embed AI into their business strategy 3 00:00:06.960 --> 00:00:10.040 and their transformation, and they need to change 4 00:00:10.040 --> 00:00:11.520 their operational models. 5 00:00:12.840 --> 00:00:15.640 Our recent Executive Perspectives edition 6 00:00:15.640 --> 00:00:20.640 summarizes key actions leaders need to take very proactively 7 00:00:21.680 --> 00:00:23.800 to make the most out of AI. 8 00:00:24.720 --> 00:00:28.640 First, develop a clear perspective 9 00:00:28.640 --> 00:00:31.400 of where AI will make a true difference 10 00:00:31.400 --> 00:00:34.840 and drive business outcomes in your company. 11 00:00:34.840 --> 00:00:39.360 That means linking AI to your overall business strategy. 12 00:00:39.360 --> 00:00:42.280 Second is to treat AI 13 00:00:42.280 --> 00:00:46.720 as a true business transformation lever. 14 00:00:46.720 --> 00:00:52.720 Releasing value requires AI to be rooted into business; 15 00:00:52.720 --> 00:00:57.360 that requires to redesign collaboratively and iteratively 16 00:00:57.360 --> 00:01:03.040 business processes to optimize the human-AI interactions. 17 00:01:03.040 --> 00:01:07.200 And don't forget the 10-20-70 rule. 18 00:01:07.200 --> 00:01:10.520 To make money with AI, 10% of the effort 19 00:01:10.520 --> 00:01:13.800 is about building algos, 20%, 20 00:01:13.800 --> 00:01:16.720 linking those algos into technology, 21 00:01:16.720 --> 00:01:18.680 but 70% of the effort 22 00:01:18.680 --> 00:01:21.720 is around business process transformation. 23 00:01:21.720 --> 00:01:26.720 Third, learn from the best ones, the digital natives. 24 00:01:27.920 --> 00:01:30.880 This means changing your operating models 25 00:01:30.880 --> 00:01:35.400 to increase agility, continuous reimagination 26 00:01:35.400 --> 00:01:39.440 of business processes, and effective orchestration 27 00:01:39.440 --> 00:01:44.440 of external ecosystem for companies to play and partner in. 28 00:01:45.920 --> 00:01:50.440 Fourth, address the expected talent gap shortage. 29 00:01:51.720 --> 00:01:54.280 Proactively consider AI talent 30 00:01:54.280 --> 00:01:57.280 in your strategic workforce planning, 31 00:01:57.280 --> 00:01:59.600 develop internal upskilling programs 32 00:01:59.600 --> 00:02:02.360 and rethink the employee value proposition 33 00:02:02.360 --> 00:02:04.600 to retain your best talents. 34 00:02:04.600 --> 00:02:07.720 Do not just focus on external hiring. 35 00:02:08.640 --> 00:02:13.640 Fifth, decouple data capability built from core IT, 36 00:02:13.720 --> 00:02:18.720 and to do so, embed flexibility through reshoring 37 00:02:19.000 --> 00:02:21.320 and iteratively modernizing. 38 00:02:21.320 --> 00:02:25.000 Finally, invest as early as possible 39 00:02:25.000 --> 00:02:27.880 in responsible AI to make sure 40 00:02:27.880 --> 00:02:31.760 you address ethics and transparency concerns. 41 00:02:31.760 --> 00:02:36.760 They are real, and you need to deploy governance policies, 42 00:02:37.320 --> 00:02:39.920 standards, tool, processes, 43 00:02:39.920 --> 00:02:43.160 to make sure you comply with the higher standards 44 00:02:43.160 --> 00:02:45.120 for responsible AI. 45 00:02:45.120 --> 00:02:50.000 We at BCG are very excited about the prospects for AI 46 00:02:50.000 --> 00:02:51.200 in the years to come. 47 00:02:52.040 --> 00:02:56.400 AI will drive long lasting transformative impact 48 00:02:56.400 --> 00:02:59.800 across all business sectors all over the planet.