AMSTERDAM--(BUSINESS WIRE)--Management and technology consultancy BearingPoint today released an in-depth study on artificial intelligence (AI), emphasizing the critical need for organizations to transition into augmented organizations to stay competitive in the rapidly evolving market landscape. An augmented organization leverages artificial intelligence and other emerging technologies to enhance capabilities and operational efficiency, reinventing customer and employee experiences and, ultimately, disrupting its value chain to stay relevant in the market.
The study, “AI-driven transformation: Becoming an augmented organization,” highlights the urgency for businesses to embrace AI not just as a technological tool but as a strategic imperative for long-term success and survival. The comprehensive research involved insights from 700 C-suite executives across Europe, the US, and Asia, revealing key strategies and challenges in AI adoption. Remarkably, although AI development is dramatic, many C-level executives are still doubtful about AI-driven transformation, according to the study.
“AI is a present-day necessity, and the pace of AI innovation and its adoption by competitors and consumers is accelerating,” said Frédéric Gigant, Global Leader Customer & Growth at BearingPoint. “Our study indicates that organizations that fail to integrate AI effectively are at significant risk of falling behind competitors already leveraging AI to enhance productivity, drive innovation, and deliver superior market experiences. AI should be seen not just as a tool, but as a strategic asset that drives new value propositions and market differentiation.”
According to the study, C-suite executives use several key criteria to rank AI initiatives after defining a transformational vision. The criteria depend on the industry and company strategy, with productivity and efficiency gains being the most common criterion. Organizations that are ahead on AI adoption concentrate more on top-line criteria such as improved customer experience and sales growth.
The imperative of AI adoption
Despite the complexities and risks associated with AI, including regulatory constraints and ethical dilemmas, the study underscores that the potential loss of competitiveness far outweighs these concerns. The analysis urges organizations to rapidly adopt AI to align with market expectations and consumer standards.
According to the study, becoming an augmented organization is not just a strategic objective but a survival strategy. The transformation requires robust governance, strategic investment, workforce empowerment, and building trust in AI. Organizations that fail to take action now risk losing their competitive edge and market position.
Four pillars for transitioning to an augmented organization and study findings
The study serves as a comprehensive guide for C-suite executives, detailing how to strategically organize and equip their organizations to harness the full potential of emerging technologies. It underscores the importance of acquiring new skills and implementing innovative processes to adopt AI at a competitive market pace. Four key pillars are central to transitioning to an augmented organization.
1. Establishing effective AI governance:
For C-suite executives, establishing AI governance is vital for becoming an augmented organization, and nearly half of the organizations surveyed are still thinking about the best approach to governance and decision-making for AI. According to the study, cross-functional governance framework is essential to align AI initiatives with business objectives and ensure ethical use. It involves setting up a dedicated AI oversight committee to monitor and guide AI deployments across various departments. It also includes establishing clear policies and protocols to manage data privacy, security, and compliance, ensuring that AI applications are not only effective but also responsible and transparent.
2. Optimizing AI investments:
Strategically prioritizing AI investments is crucial to achieving scalable impacts and the best return on investment. It means identifying high-impact areas where AI can drive significant improvements and allocating resources accordingly. According to the study, organizations should adopt a data-driven approach to measure the effectiveness of AI initiatives, continuously assessing and optimizing their AI portfolio to maximize efficiency and innovation.
3. Empowering the workforce:
From the base to the C-suite, fostering a culture of continuous learning and adaptation is vital to embrace AI-driven change. It includes providing ongoing training and development programs to enhance AI literacy and skills across the organization. Encouraging collaboration between employees and AI systems can lead to more innovative solutions and a more agile workforce that is better prepared for the future of work. Despite prioritizing training, only a third of organizations have a strategy for adopting AI and managing the changes it brings, according to the survey.
4. Building trust in AI:
Addressing technological, security, legal, and ethical challenges is essential to ensure AI integration and acceptance within the organization. According to the survey, data and people are the central issues and priorities for C-suite executives in establishing trust in AI. Building trust in AI requires transparent communication about how AI systems make decisions and how they impact employees and customers. Establishing robust cybersecurity measures, adhering to legal standards, and fostering an ethical AI culture can mitigate risks and enhance the credibility and reliability of AI solutions.
About the research
The research assesses the essential organizational prerequisites that need to be in place for an entity to transition into an Augmented Organization and be ready to adopt new technological waves. The data for this research was collected through an online survey conducted in June 2024. The survey targeted 700 C-suite executives from various sectors, both private and public. The geographical scope of the survey covered 14 key countries in Europe, the USA, and Asia. The research was focused on large organizations, having more than 0,5 bn€ in revenues, with 84% of respondents from companies over 1bn€ in revenues. The survey was operated by the global research and analytics firm Phronesis Partners.
Download the study for more details about AI and transitioning to augmented organizations: https://www.bearingpoint.com/en/insights-events/insights/ride-the-upcoming-artificial-intelligence-waves/
About BearingPoint
BearingPoint is an independent management and technology consultancy with European roots and a global reach. The company operates in three business units: Consulting, Products, and Capital. Consulting covers the advisory business with a clear focus on selected business areas. Products provides IP-driven digital assets and managed services for business-critical processes. Capital delivers M&A and transaction services.
BearingPoint’s clients include many of the world’s leading companies and organizations. The firm has a global consulting network with more than 10,000 people and supports clients in over 70 countries, engaging with them to achieve measurable and sustainable success.
More information:
Homepage: www.bearingpoint.com
LinkedIn: www.linkedin.com/company/bearingpoint
Twitter: @BearingPoint
