In the contemporary business landscape, discussions on strategic planning and future trends are incomplete without acknowledging the transformative impact of Artificial Intelligence (AI) and Generative AI (GenAI) on enterprises and their operations. Leaders are increasingly recognizing AI’s potential to drive breakthrough performance, with McKinsey’s recent research indicating that generative AI could annually contribute between $2.6 trillion and $4.4 trillion across 63 analyzed use cases. Organizations are viewing AI as crucial for driving key priorities, strategic decisions, and significant operational and customer impact. Given its evolving potential, how prominently should AI feature in an organization’s strategic plan for the next three to five years?
1. Assess AI Readiness
To begin integrating AI into a long-term strategic plan effectively, leaders must first conduct a thorough review or audit of their organization’s AI maturity, evaluating the current level of AI adoption and how it aligns with the organization’s mission or vision. Many organizations still grapple with underutilized AI technology due to insufficient training and a general discomfort among employees. According to Gallup research, many employees who use AI infrequently report a lack of training, and only a small percentage of employees feel very comfortable using AI in their roles, indicating a significant gap in AI readiness.
AI adoption is multifaceted and complex, requiring more than just upgrading legacy systems with new technology. A deeper examination into existing barriers and opportunities is essential. Leaders should invite external experts to discuss AI’s benefits and challenges, host workshops for team members to explore different case studies, or create internal discussion groups to focus on various aspects of AI technology and adoption barriers. Such insights will help develop a compelling value proposition for the organization’s AI strategy, which must be reflected in strategic plans. Leaders might consider asking questions like:
- What is the current level of AI adoption, and how does it align with our mission or vision?
- How reliable and comprehensive is the data used for AI applications? Where do we see gaps in data availability, validity, and fidelity?
- What obstacles can hinder AI adoption?
- Do we have the necessary talent to drive AI adoption?
- Will our organizational culture support the transformation that AI might bring? What significant barriers or resistance to new technology might we face?
Such assessments can reveal what organizational preparations are needed for AI adoption, which should be reflected in strategic plans highlighting early gains, progress made, and long-term expectations. Conducting a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is also a critical step in strategic planning, which applies equally to AI investments.
2. Align AI With Organizational Purpose
Linking AI investments to the organization’s purpose and mission is crucial for a strong strategic plan. If, for instance, customer centricity is a core mission, investments in new technology should directly connect to enhancing customer outcomes. Demonstrating the expected impact of AI on the organization’s mission and vision involves quantifying clear outcomes and return on investment (ROI). Potential inclusions in the strategy plan to show impact might be:
- Personalizing customer interactions using AI to boost customer lifetime value.
- Implementing automation to reduce operational costs or improve quality while meeting compliance standards.
- Leveraging data-driven decision-making to lower risk or mitigate financial damage.
Additionally, employees who use or will use AI should understand how it can help them contribute to the company’s success and align with their own professional missions. According to a Slack survey, nearly half of all desk workers would feel uncomfortable admitting to their manager that they used AI, fearing it might be perceived as cheating or as a sign of incompetence. Therefore, merely promoting AI as an exciting new trend in strategic plans could be met with skepticism.
Including personal stories of impact and use cases in the strategic plan can help build confidence and understanding among employees. These stories should clearly illustrate how AI applications have enabled employees or teams to achieve better results and how these outcomes align with the organization’s mission and vision.
3. Develop a Flexible Strategy Roadmap
In today’s business world, it’s impossible to have meaningful conversations on strategic planning and future trends without discussing the transformative effects of Artificial Intelligence (AI) and Generative AI (GenAI). Leaders are increasingly realizing that AI has the potential to drive groundbreaking performance improvements. According to McKinsey’s recent research, generative AI could potentially contribute between $2.6 trillion and $4.4 trillion each year across 63 analyzed use cases. Firms are now seeing AI as crucial for achieving key priorities, making strategic decisions, and having a significant impact on both operations and customer experiences. Given the continuously evolving capabilities of AI, the question arises: how prominently should AI be featured in an organization’s strategic plan for the next three to five years? With its vast potential and ongoing advancements, it’s clear that AI should play a central role in shaping the future strategies of businesses, ensuring they stay competitive and innovative in a rapidly changing environment.