Artificial intelligence is one of the most powerful technologies for reshaping business in decades. It has the ability to optimize many processes throughout organizations and is already the engine behind some of the world’s most valuable platform businesses. In our view AI will become a permanent aspect of the business landscape and AI capabilities need to be sustainable over time in order to develop and support potential new business models and capabilities.
Specifically, we believe that companies need to establish dedicated organizational units to entrench AI. This is an important business tool that cannot be left to bottom-up whimsy. Companies are devoting considerable financial resources to AI, and necessary skills and experience are too rare to assume that they will be scattered around the organization with little coordination or collaboration. Just as e-commerce led to Chief Digital Officers and groups to support online presence and commerce, we believe that AI will engender new competence centers (CC) or centers of excellence (COE), and new roles within them.
The idea of establishing a CC or COE in AI is not particularly radical. In one recent survey of U.S. executives from large firms using AI, 37% said they had already established such an organization. Deutsche Bank, J.P. Morgan Chase, Pfizer, Procter & Gamble, Anthem, and Farmers Insurance are among the non-tech firms that have created centralized AI oversight groups. [read more]