Most people think AI is just a technology shift; however AI is fundamentally a business transformation.
AI transformation is different than the earlier S-curve that came before it: cloud transformation.
Think of cloud as a technology transformation with business value implications. Cloud became the new way of delivering and consuming technology capabilities. Companies adopted Cloud / SaaS to enhance workflows, boost productivity, and drive efficiencies, following a familiar pattern: buy software, create efficiency.
But implementing a SaaS platform or a Hyperscaler never made an insurance company or a manufacturing company to start rethinking its business model. The business model change was more for tech companies that were building the said Cloud and SaaS products.
This is where AI is different. AI isn’t just another tool to enhance existing processes; it is forcing companies to rethink their operating model, their organization structures, business economics, and of course, their business model.
In the cloud era, business functions would purchase SaaS and rely on IT for defining standards and to govern tech platforms. But AI is changing the rules of this game as well.
AI is demanding a partnership where product leadership, business leadership, and technology leadership collaborate actively on AI strategy and platforms. This trifecta is crucial for leveraging AI’s full potential.
AI isn’t just a technological shift; it’s a business transformation that reshapes how we operate, innovate, and compete. Embrace the change. Partner across your organization. Drive the future.
What are your thoughts on AI transformation vs earlier transformation cycles?
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