The Value of External Support When Implementing AI

Chatbots, large language models, predictive analytics, and other fast-evolving artificial intelligence (AI) tools are rapidly transforming the way businesses operate. A large majority of middle market organizations are embracing AI, lauding its positive impact, and boosting resources around it.

At the same time, many of these companies are only in the early stages of AI adoption, wrestling with implementation and aware that they need outside help to position the technology for the greatest strategic benefit to their businesses while also mitigating risk, according to Big Village Insights’ The RSM Middle Market AI Survey 2024: US and Canada, conducted on behalf of RSM.

Of some 500 executives polled at organizations in the United States and Canada with annual revenues between $10 million and $1 billion, more than three-quarters (78%) said AI is being used across their operations, either formally or informally. Seventy-seven percent said their organizations have adopted generative AI solutions, such as ChatGPT and Microsoft Copilot. Primary use cases for generative AI are broad, ranging from data analytics to customer service.

But a plurality (41%) of respondents in the survey—conducted from Feb. 26 to Mar. 4, 2024—said their businesses have only partially implemented AI technology; just one-fifth had achieved full integration.

“Middle market companies are rapidly understanding AI’s potential,” said George Casey, a principal at RSM US. “But many are also finding out that implementation is not always simple.

“With the technology’s fast pace and complexity, many companies do not have experienced internal resources, and external support and advice are necessary, especially as AI-driven processes become more commonplace and critical for growth.”

With the technological advances and pressure to innovate, many companies understandably want to move fast with AI technology. However, a practical approach is often better as companies work to understand how best to use the technology and manage its deployment. An effective approach to generative AI often includes external support for design and implementation.

Indeed, more than half (54%) of survey respondents said the technologies have been more difficult to roll out than expected, and 67 percent acknowledged that outside help is needed to maximize the benefits of their chosen generative AI solutions.

“Internal experience and business needs simply do not match very often,” Casey said. “Companies understand they need help to determine what solutions are the best fit, align them with company objectives, and optimize the return on investment.”   

Before a company begins its AI journey, it’s crucial for a group of cross-functional stakeholders to define what business problems they want the technology to solve. Perhaps there is concern about increasing operating costs, eroding margins, or an unexpectedly low sales conversion rate. Without a target and goals in mind, establishing a strategy or determining return on investment is not truly possible.

Key questions that can guide AI strategy and investment decisions include:

• What role will AI play in the organization?
• What is the internal level of AI proficiency, aptitude, and literacy?
• What concerns about AI exist and require further discussion?
• Is there an allocated budget for AI investment tools, research. and resources?
• How will the board prepare for or adapt to the changes or challenges that AI may bring to an industry?
• What kind of help is needed to get started with AI or refine an existing plan?

Companies that answer those questions thoughtfully with the help of experienced AI professionals can take the first step toward designing and implementing an effective plan. From that introspective exercise, a business can come away with:

• Alignment on vision and goals allows the overall strategy and new organizational resources and structures introduced to be accepted across the organization, helping advance toward a common goal.
• A customized road map that includes an actionable, multiyear plan that aligns AI with specific business needs and considers the investment required in people, process, and technology. 
• Organizational governance provides an appropriate organizational structure and process to ensure the company can benefit from AI while managing risks, optimizing investments, and developing capabilities.

Creating and implementing an AI strategy is a journey. Proper integration does not come overnight, and the journey does not end at implementation, as solutions and capabilities will continue to evolve and improve. Demonstrating the value of AI quickly is important within an organization, though, to encourage adoption and fuel further investment in the technology. In many cases, external support can facilitate those promising returns.

RSM is a NACD partner, providing directors with critical and timely information, and perspectives. RSM is a financial supporter of the NACD.