The AI Adoption Playbook: Three Approaches to Right-Size AI Innovation
- Details
- Written by Michael Hay
AI is transforming industries at warp speed, with companies across sectors driven by its potential to accelerate revenue growth, boost operational efficiency and customize customer experiences.
The World Economic Forum (WEF) estimates that AI could contribute $19.9 trillion to the global economy by 2030, reshaping international trade dynamics and transforming the way we work. With this level of scale and complexity, AI adoption needs to be thought of foremost as a product and service issue, not just an engineering or tech expense. Why so many initiatives fail isn't the technology -- it's the missing "why." Without clearly defined goals, companies launch untested ventures that often flop. A product-first approach, what Steve Jobs called "starting with the customer and working backward", initiates lucidity, direction and accountability from the outset.
In the rush to add AI to their companies’ arsenal, tech leaders should not lose sight of their overarching strategy. Their first step must be the creation of a strategic framework that helps gauge AI needs, align with business goals and deploy solutions with measurable effect. A three-tiered approach offers a brass-tacks roadmap, empowering companies to determine when to build, buy or customize AI per their precise challenges and possibilities.
A Three-Tiered Approach to AI Deployment
From triple-layer cake to Asimov’s Three Laws of Robotics, in life, as in tech, sometimes the best things come in threes. Rather than a single, one-size-fits-all approach, organizations should embrace three levels of AI deployment: off-the-shelf AI for rapid impact, company-specific AI tailored to address particular needs, and fully bespoke AI solutions developed internally. This phased development -- from Taker to Shaper to Maker -- mirrors the generative AI maturity model introduced by McKinsey's QuantumBlack Labs. Understanding your "why" and clustering use cases by domain or function is key before sequencing investment or development.
Off-the-Shelf AI for Quick Impact
For most organizations, AI adoption starts with existing commercially-available solutions. These solutions offer immediate value without needing significant development or infrastructure investment. Typical examples are AI-powered coding assistants, content generation models, customer support chatbots and automated data analysis platforms. The State of Data Infrastructure Report reveals that most organizations take this one-size-fits all route first, as it enables them to test AI, automate processes and optimize operations with little investment.
This ready-made approach is most useful when the business problem is well-defined, ensuring the AI they have selected can produce near-term productivity improvements. However, while these tools are efficient, they represent a bit of a blunt object approach rather than a sharply tailored tool attuned to an organization's data. They are unlikely to provide the strategic differentiation necessary for long-term success.
Customizing AI to Business-Specific Needs
Customization is key for organizations seeking a competitive edge. This is where organizations up the ante on their AI strategy, refining pre-trained AI models using business-specific data to fine-tune accuracy and relevance. Tech leaders may customize pre-trained AI models with in-house proprietary customer data, integrate AI with internal enterprise systems or apply AI to industry-specific use cases such as fraud detection and predictive maintenance. But it never pays to coast on data without vetting for quality. Caveat emptor: AI is only as good as the data it has been trained on. In other words, garbage in, garbage out.
Building AI Solutions from the Ground Up
The final stage of AI adoption is creating proprietary AI models from scratch. This is for businesses that require extreme customization, proprietary algorithms and end-to-end control over AI architecture. But building a proprietary model is only worth pursuing if your business has a product-worthy use case that demands it proven through concrete measurement and closely linked to customer results.
For most companies, this investment is unnecessary and rarely worth the expense. Tech titans invest in custom AI architectures because their business model depends on pushing the boundaries of AI capability. Most companies, however, can achieve their AI objectives without the overhead of building models from scratch.
LLMs as Data Products: A Natural Progression
Today’s large language models (LLMs) are essentially dynamic, prose-queryable data products, an evolution of the data lakehouse. LLMs offer pre-ingested intelligence and represent a major milestone in shifting enterprise data from being a tax to becoming a true asset. But this transformation only succeeds if organizations commit to product-level thinking. That means clear value definitions, robust governance and purposeful reuse -- not AI for AI’s sake.
AI as an Engineering Challenge, Not Just a Technology Expense
Organizations should approach AI implementation as an engineering challenge, regardless of their level of AI adoption. This means prioritizing data quality to render AI accurate and trustworthy, keeping AI expenses to a minimum using efficient infrastructure and deployment strategies, and maintaining AI projects aligned with business goals rather than using AI simply for the sake of using this technology.
The vast majority of organizations underestimate the power and infrastructure demands of AI. With growing AI workloads come more significant compute needs, resulting in higher operating costs and carbon emissions. The State of Data Infrastructure Report identifies a growing focus on AI sustainability reducing energy consumption, improving data efficiency and maximizing resource optimization.
The Canadian Path Forward: AI That Drives Business Value
AI should be treated with the same discipline and intentionality as any product rollout. AI is no longer the stuff of science fiction films -- it's today’s reality, changing how businesses operate, compete and innovate. Yet, not all AI needs to be created in-house. Businesses with a tiered approach, off-the-shelf AI as a starting point, customization where necessary and creation only when strategically warranted, experience faster ROI, lower costs and greater long-term success.
By rendering AI adoption strategic, sustainable and business-oriented, organizations can realize optimum efficiency, resource optimization and tangible outcomes. Intelligent and phased adopters of AI will be well-positioned for growth, efficiency and competitiveness in the AI-driven future. It is as easy as 1, 2, 3: adopt AI strategically, scale up sustainably and innovate with a purpose.
Michael Hay is the Chief Technology Strategy Officer for the Americas at Hitachi Vantara, where he leads forward-looking innovation and technology strategy across the region. A seasoned technologist, Michael is known for his user-centric approach to developing practical, data-driven solutions that address real-world challenges. His previous leadership roles include Vice President of Products at Teradata, where he focused on private cloud infrastructure and business continuity services, and Vice President and Chief Engineer at Hitachi, where he was instrumental in advancing applications for the oil & gas and financial services sectors.
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