AI Perspectives #3: "AI in Process" – Unlocking Economic and Societal Value
Why focusing on internal AI is crucial for Sweden's future prosperity.
The AI Adoption Paradox
In a recent conversation with a colleague, a board member at a prominent Swedish consultancy firm, we found ourselves pondering a perplexing question: Why, with the undeniable advancements in AI and its readily available technology, aren't we witnessing a boom in its application across companies? He confided that his clients, many of them large corporations, aren't adopting AI at the pace he anticipated, despite the significant potential for increased profitability and cost efficiency. This observation resonated with my own experiences. Through my work mentoring executives at large corporations on leadership in a digital age (LiDT) and their AI strategies, I've encountered similar hurdles in AI utilization.
This discussion, further enriched by the perspective of a manager from a software development company, led us to explore another intriguing aspect: the illusion of AI adoption. Companies like Spotify, for instance, expertly leverage AI to curate personalized playlists and recommendations for millions of users, yet their internal operations and projects may not be fully harnessing AI's potential.
The 4 Ps of AI: Where's the Focus?
This exploration brought me to a realization: companies are approaching AI from three primary angles. Some prioritize AI-enabled products and services, focusing on external impact and customer benefit, like Klarna's use of AI in customer service. Others view AI as a tool for personal enhancement, equipping employees with LLMs, Copilot, or Cursor to boost productivity. And then there's the third group, the ones leveraging "AI in Process" – utilizing AI as an internal tool to streamline and enhance their operations.
It's this third group, the champions of "AI in Process," that holds the key to unlocking the true transformative power of AI. By embedding AI within their workflows, these companies are poised to achieve unprecedented levels of efficiency and innovation. Understanding the reasons behind the current disparity in AI adoption likely lies within the realm of LiDT and the need for a deeper understanding of "AI in Process" among management.
To illustrate this further, let's consider the 4Ps of innovation: Product, Position, Process, and Paradigm. Just as with innovation, AI can be applied across all four dimensions. However, it's the "Process" dimension that offers the most significant potential for companies, businesses, the economy, and ultimately, society as a whole.
The Untapped Potential of "AI in Process"
"AI in Process" encompasses a wide range of applications, from automating repetitive tasks and optimizing workflows to enhancing decision-making and uncovering valuable insights. Imagine a pharmaceutical company using AI to analyze vast datasets of clinical trial data to identify promising drug candidates more quickly and efficiently. Or picture a fashion retailer using AI to predict upcoming trends and optimize inventory management, minimizing waste and maximizing profits. These are just a few examples of how "AI in Process" can revolutionize operations.
Bridging the Gap: Why Aren't Companies "AI-ing" Their Processes?
So why aren't more companies "AI-ing" their processes? Several factors contribute to this hesitation:
Lack of AI Literacy: Many managers lack a fundamental understanding of AI's capabilities and potential applications within their specific business context.
Process Redesign Challenges: Integrating AI often necessitates re-engineering existing processes, which can be a daunting task.
Fear of the Unknown: Concerns about job displacement, data security, and the ethical implications of AI can create resistance.
Identifying the Right Solutions: Navigating the complex landscape of AI tools and technologies can be overwhelming.
A Call to Action: Start with a Controlled Pilot
To overcome these obstacles, businesses need a practical and manageable approach to "AI in Process" adoption. While investing in AI education, conducting process audits, and fostering a culture of innovation are valuable long-term strategies, a more immediate solution is to engage with expert consultants specializing in AI implementation.
These experts can guide companies through a controlled pilot program, tailoring AI solutions to their specific needs and processes. This approach minimizes risk, allows for incremental adoption, and provides tangible benefits from the early stages. By demonstrating the value of "AI in Process" in a controlled environment, companies can gain confidence and build momentum for further integration.
Join the "AI in Process" Movement
The Swedish AI Association is committed to facilitating the widespread adoption of "AI in Process" to drive economic growth and societal benefit. We invite businesses, researchers, experts, and all interested parties to connect with us, share their insights and experiences, and contribute to this vital movement. By collaborating and learning from each other, we can accelerate the integration of AI into core business processes, unlocking its full potential for a more prosperous and innovative future.