{"id":1818,"date":"2019-07-12T03:28:33","date_gmt":"2019-07-12T03:28:33","guid":{"rendered":"http:\/\/kusuaks7\/?p=1423"},"modified":"2023-08-22T10:53:21","modified_gmt":"2023-08-22T10:53:21","slug":"the-secrets-to-a-successful-ai-strategy","status":"publish","type":"post","link":"https:\/\/www.experfy.com\/blog\/ai-ml\/the-secrets-to-a-successful-ai-strategy\/","title":{"rendered":"The Secrets to a Successful AI Strategy"},"content":{"rendered":"

While much is known about creating a business strategy, creating an AI Strategy is new territory. How do you approach creating your AI Strategy?<\/h3>\n
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Artificial Intelligence holds\u00a0vast promises<\/a>\u00a0across industries and sectors.\u00a0Andrew Ng<\/a>, the world\u2019s foremost AI Evangelists, lists creating an AI Strategy as a key element in his\u00a0AI Transformation Playbook<\/a>. With AI set to transform every industry, how do you create a sensible strategy to harness its power? What exactly constitutes an AI Strategy? What are the differences in creating an AI Strategy for startups vs corporations?<\/p>\n

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Photo by\u00a0JESHOOTS.COM<\/a>\u00a0on\u00a0Unsplash<\/a><\/p>\n

Modeling an AI Strategy is different from creating a traditional business strategy. This post aims to guide practitioners through the process of creating a targeted AI Strategy. The insights are based on my personal experience and expert interviews with global AI leaders from companies like\u00a0Volkswagen<\/a>,\u00a0Google<\/a>,\u00a0AI Fund<\/a>, and many more. By the end of the article, you will know how the AI Strategy relates to the business strategy, the core components of an AI Strategy, and how to separate a good from a bad AI Strategy.<\/p>\n

Let\u2019s start planning.<\/p>\n<\/section>\n

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The Business Strategy and the AI\u00a0Strategy<\/h3>\n

An AI Strategy exists to support the business strategy. The business strategy defines the road ahead for your company. Which initiatives will provide the highest business value? Which features separate the company from competitors? A business strategy is expressed through measurable goals, e.g. in the form of Key Performance Indicators (KPIs<\/a>) or Objectives and Key Results (OKRs<\/a>). These methods track the progress in achieving the business goals.<\/p>\n

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AI Strategy supports the business in achieving its\u00a0KPIs.<\/p>\n

Raphael Kohler<\/a>, Vice-Chairman of the\u00a0German Chinese Association of AI<\/a>, states that it is crucial to have a good understanding of the goal of the AI Strategy. He emphasizes that the discussion cannot center on technology, but has to be driven by business value.<\/p>\n

There is no one-size fits all for AI Strategy as for business strategy.\u200a\u2014\u200aDominik\u00a0Haitz<\/a><\/p><\/blockquote>\n

The business aligns to fulfill these KPIs. The job of the AI Strategy is to provide a road to impact these business KPIs.<\/p>\n<\/section>\n

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Opportunities and Challenges of\u00a0AI<\/h3>\n

Balancing the capabilities and limitations of AI is key to understand how AI can support your business strategy.<\/p>\n

You can\u2019t expect to get anything useful by asking wizards to sprinkle machine learning magic on your business without some effort from you\u00a0first<\/a>.\u200a\u2014\u200aCassie\u00a0Kozyrkov<\/a><\/p><\/blockquote>\n

Generally speaking, AI can do\u00a0three things well<\/a>: automate processes, create new products, or improve existing products. An example of automating processes is\u00a0Robotic Process Automation<\/a>, which frees employees from tedious, repetitive tasks. AI can also help companies generate completely new products, e.g.\u00a0smart home speakers<\/a>\u00a0are powered by AI. Lastly, AI can also improve existing products. Credit decisions today are mostly supported by AI. The model crunches ever more information than humans could, thus lowering the\u00a0overall credit costs for consumers<\/a>.<\/p>\n

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Source<\/a><\/p>\n

Yet, AI struggles with complex tasks. These tasks could include context understanding or anything else that takes a human more than\u00a01s to do<\/a>. AI is very good at executing narrowly defined tasks and fares less well in uncertain environments.<\/p>\n

Understanding the scope and boundaries of AI is paramount before planning your AI efforts.<\/p>\n

Leverage AI to create an advantage specific to your\u00a0industry sector<\/a>.\u200a\u2014\u200aAndrew\u00a0Ng<\/a><\/p><\/blockquote>\n

Now that you understand how the AI Strategy relates to the business strategy and which opportunities and challenges exist, how do you approach creating one?<\/p>\n<\/section>\n

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The Core Components of an AI\u00a0Strategy<\/h3>\n

In the same way that every company was touched by electricity, every company will be touched by the power of AI. While no AI Strategy looks the same, all AI Strategies need to answer similar questions. The core components of any AI Strategy concern its holy trinity of Data, Infrastructure, Algorithms, surrounded by the pillars of Skills and Organization. Let\u2019s dive into each component.<\/p>\n

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Data<\/h3>\n

Without data, there can be no AI. Data relates to all pieces of information that are relevant to improve your business. It can be anything from sensor data of self-driving cars to financial data for business decisions. Creating a Data Strategy is a vital part of any AI Strategy. Andrew Ng recommends touching on the following points:<\/p>\n