AI in business: beyond cost-cutting to true transformation

It is clear that AI is being used to drive out costs and inefficiencies in business. However, it would be a mistake to focus solely on what AI can automate and optimise. The fundamental lessons of change remain just as relevant today. AI is no different from previous technological catalysts. Success lies not only in deploying AI but in embedding it within a broader transformation strategy.

AI as a tool for transformation, not just efficiency

 By all means, start with practical applications:

• Leveraging large language models (LLMs) to enhance customer experience through smarter, more responsive interactions.
• Using AI-powered data management systems to improve process efficiency, streamline workflows, and enhance decision-making.

However, true AI-driven transformation requires a well-structured framework that ensures sustainable impact.

The essential transformation wrapper

To fully harness AI’s potential, businesses must put in place:

• Strong data quality improvement: AI is only as good as the data it processes. Ensuring clean, structured, and high-quality data is critical for reliable insights.
• The right tech architecture: AI should be embedded within a scalable and flexible IT ecosystem, ensuring interoperability and future-proofing investments.
• The right capabilities and roles: having the right talent in the right places is crucial. Organisations must develop AI literacy, reskill employees, and align expertise with AI-enabled operations.
• Ongoing AI training & upskilling: employees at all levels need learning opportunities to understand AI capabilities, work effectively alongside AI tools, and adapt to evolving technologies.
• AI champions to drive adoption: identifying and empowering AI ‘champions’ within the organisation ensures strong leadership, accelerates AI integration, and can help foster a culture of innovation and collaboration.

Building a culture of continuous change

For AI adoption to succeed long term, organisations must foster a continuous change culture. This means:

• Encouraging adaptability and experimentation, rather than rigid implementation.
• Aligning AI initiatives with strategic business goals rather than treating them as standalone IT projects.
• Learning from past transformation failures to avoid common pitfalls such as resistance to change, lack of executive buy-in, and poor integration across departments.

And, as always, risks must be managed

The power and infrastructure requirements of AI are high. It will be important to assess against ESG criteria when selecting an AI solution.

There can be an in-built gender and other bias of a preferred AI solution. Comprehensive and focussed due diligence is required.

Conclusion

AI presents immense opportunities, but businesses that focus solely on automation and cost reduction will miss its full potential. The true value of AI lies in integrating it within a broader, continuously evolving transformation strategy. To get it right, organisations must invest in the right data, technology, talent, and cultural mindset. Those who build this transformation wrapper around AI will be the ones who truly thrive in the AI-driven era.

#assureddelivery, April 2025