© Copyright 2024 BlueHour Technology
By Robert Dvorak, Founder of BlueHour Technology
The recent Goldman Sachs Global Macro Research Report titled “GenAI: Too Much Spend, Too Little Benefit?” (ISSUE 129 | June 25, 2024) raises important concerns about the current state of AI investments and returns. However, as the founder of BlueHour Technology, I argue that this report misses a crucial point: the fundamental difference between AI adoption and true AI operationalization. The perceived lack of ROI and the looming “AI bubble” are not indictments of AI’s potential, but rather symptoms of a flawed approach to integrating AI into business operations.
The AI Operationalization Log-Jam
Goldman Sachs correctly identifies the challenges in realizing returns from AI investments. However, this “log-jam” is not due to AI’s limitations, but to the piecemeal, siloed approach most companies take. Our solution is the Constructive Interference Model (CIM) Design – a holistic operating model that integrates AI, IT, and Human domains to create a synergy where the whole is greater than the sum of its parts.
The Racehorse vs. The Donkey: A Powerful Analogy
To understand the fundamental difference between AI adoption and AI operationalization, consider this analogy: AI adoption across an existing operating model is like playing “pin the tail on the donkey.” Companies blindly attach AI capabilities to their current processes, hoping to hit the mark but often missing the true potential of AI. In contrast, operationalizing AI with IT and Human capabilities through CIM Design is akin to creating a world-class racehorse operating model. Instead of merely adding a feature to an old system, we’re breeding a new, high-performance entity designed for speed, agility, and winning in the AI-driven business landscape.
The ROI and business benefits of this racehorse model are greater than one can imagine. Just as a racehorse outperforms a donkey in every measurable way, a business with a fully operationalized AI model will lap its competitors still playing pin the tail with AI adoption.
This analogy underscores why the Goldman Sachs report, while raising valid concerns, misses the transformative potential of true AI operationalization. It’s not about finding the right spot to pin the tail; it’s about fundamentally reimagining the entire business as a new, AI-powered entity.
CIM Design: A Holistic Approach
CIM Design is not just about AI implementation. It’s a comprehensive reimagining of the business operating model that recognizes the critical role each domain plays:
1. AI: Leveraging advanced algorithms and machine learning to drive insights and automation.
2. IT: Ensuring robust infrastructure and systems to support AI initiatives.
3. Human: Focusing on skills, culture, and organizational structure to maximize AI’s impact.
By integrating these domains, CIM Design creates constructive interference, amplifying the benefits and driving unprecedented business value.
Conclusion
The AI revolution is not about finding a single killer app or achieving quick ROI on isolated AI projects. It’s about transforming entire organizations to thrive in an AI-driven world. The challenges identified in the Goldman Sachs report “GenAI: Too Much Spend, Too Little Benefit?” are real, but they are not insurmountable. They are the growing pains of a transformative technology being underutilized.
With CIM Design, we offer a path forward that addresses these challenges head-on. By truly operationalizing AI across the enterprise – integrating AI, IT, and Human domains – businesses can unlock levels of efficiency, innovation, and profitability that were previously unimaginable. The choice is clear: continue playing pin the tail with piecemeal AI adoption and risk being left in the dust or embrace comprehensive AI operationalization through CIM Design and lead the race in the new economic landscape. The opportunity is immense, but it requires a shift in thinking from attaching AI capabilities to existing models to breeding entirely new, AI-powered business racehorses.
The AI revolution is here. The question is not whether AI will transform business, but who will be prepared to win the race in this transformed business world. With BlueHour’s CIM Design, we’re ensuring our clients are at the forefront of this transformation, breaking the log-jam and unlocking the true potential of AI for businesses and investors alike.
© Copyright 2024 BlueHour Technology