August 11, 2024

Part Two - The AI Landscape in 2025: Transformative, Not Transactional

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In this second part of our future of AI article, we explore what the AI-driven business of 2025 will look like and address the real challenges companies face as they navigate AI adoption.

AI in 2025: A Transformative Force

Many businesses today are stuck in the "AI exploratory stage"—testing AI tools without fully integrating them into a broader strategy. By 2025, the difference between industry leaders and laggards will be clear, based on how well they have moved from AI exploration to implementation and innovation. Here’s what AI-driven businesses will look like by 2025:

●     AI-driven decision-making: In the near future, AI will be at the heart of decision-making, leveraging vast datasets to provide insights beyond human capability. These decisions will over various aspects of business operations from supply chain optimisation to customer personalisation experiences.

●     AI as a business differentiator: AI will no longer be a novelty but a core differentiator. Companies that effectively harness AI will be able to deliver better value products and services for less, personalised experiences, and greater efficiency than competitors who are not adopting AI in the same way.

●     AI as a job creator, not just an automation tool: While AI may automate certain tasks, it will also create new roles — particularly in AI oversight, data science, and AI-human collaboration. Companies that embrace this shift and invest in up skilling their workforce will be well-positioned for future success.

Addressing the Real Problem: What Does It Mean to Explore AI?

Many businesses believe they are "exploring AI" when, in fact, they are using it for minor or personal productivity, such as deploying ChatGPT to write emails more efficiently or implementing chatbots for basic customer queries.This is not true AI integration as genuine exploration requires much more:

●     Engaging with real-world AI challenges: Businesses need to identify where AI can solve significant problems, such as optimising supply chains, predicting consumer behaviour, or automating complex tasks like real-time fraud detection.

●     Piloting AI with purpose: Start with clearly defined pilot projects that address specific business challenges. These projects should be measurable and aligned with long-term goals, offering real insights into AI’s potential.

●     Investing in long-term AI capabilities: AI is not a quick fix; it’s an evolving capability that requires ongoing investment in data, talent, and infrastructure. Businesses need to build a robust foundation to enable AI to scale across different departments and areas, while minimising the risk to data securities and sensitivities.

Implications for Leadership: A Duty to Prepare for AI

As a leadership team, there is a duty of care towards shareholders, employees, and the future of the business when adopting AI. The decisions made today will have lasting impacts on a company’s competitive position and long-term viability. Some key considerations for leadership teams include:

●     AI readiness as a business responsibility: Leaders must ensure that their organisation is AI-ready, from data to talent. This includes training employees, fostering a culture of innovation, and staying compliant.

●     Long-term investment vs. short-term gains: While AI can offer quick wins, leaders must balance short-term benefits with long-term strategic goals. AI should not be seen as a "patch" but as an enabler for sustainable growth.

●     Stakeholder communication: Leaders should be transparent with shareholders and other stakeholders about AI adoption Clearly explaining the rationale, potential risks, and expected outcomes of AI integration is critical to maintaining confidence in AI investment.

As we look towards the future, businesses need to move beyond the exploratory phase of AI and commit to deeper, more strategic integration. By 2025, companies that succeed in AI will be those that have fully integrated AI into their decision-making, operations, and strategic frameworks.

This requires building an AI business plan that identifies areas for transformation, addresses ethical and governance challenges, and delivers long-term value. Synetec provides the expertise and infrastructure needed to achieve this, guiding businesses through complex challenges like scalability, real-world AI applications, choice of LLM’s, AI tools and data privacy.  Our approach positions AI as a key differentiator for your business, fuelling innovation, enhancing efficiency, and creating new job opportunities. This strategy empowers your business to evolve and thrive in a rapidly changing landscape.

 

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