Diffusion of AI in Business Operations
2023 is shaping up to be the year of AI. The surge in the usage of ChatGPT and other AI tools is reigniting the conversation about how much AI will ultimately be implemented in our daily lives. From a business perspective, the question is not if you will implement some form of AI, but when? If you are a business owner or in business leadership I'm sure you recognize that AI can save on labor costs, but also make operations more efficient and reliable.
I do plan to write a newsletter on the ethical concerns of using AI, but today let's talk about implementation strategy. The biggest argument against AI as I can tell is that it removes the human element of doing business. I happen to agree with this assessment, but I also believe there is a balanced way to use AI. I believe in old-fashioned personalized customer service. This level of customer service requires nuance. You have to simultaneously be able to understand your customer's pain points, be solution-oriented and show empathy if it requires it. This is something that AI can't do, at least not yet. So if you are in operations leadership or a business owner then let's start with the premise that you should limit customer-related AI interactions to impersonal tasks that help augment the customer service experience, not take them over completely. This means that you should still have that customer service rep apologizing for the failure of your company to live up to your brand promises, but perhaps you could lean on AI for key updates that are occurring while you are problems solving the issue. The ability for AI to work in routine matters is the ideal use at present. Emailing reminders to new hires while they work through orientation, or pulling up files on a computer for a customer service rep when a keyword is mentioned on a phone call. AI works wonderfully for supply chain logistics, with low orders automatically triggering reorders from upstream suppliers or automatic shipping updates to a customer.
Strategically find places in your business where human labor related to busy work is not needed. These are the task that consumes hours but is not directly revenue-generating activities. The key is to focus whatever workforce you have on behaviors that drive revenue.
So what's the bottom line? As intriguing as it is to over-invest in AI to make your company a well-oiled machine, if you move too fast and you don't have a plan for it or protocols to monitor it, then you are putting your company in a bad strategic advantage. Plan, protocols, and placement are my three P's of AI utilization in business. At the end of the day, any organizational strategy change or enhancement should align with your brand promise.