Reimagining Digital Transformation with GenAI: Strategic Insights for Directors

We hosted our AI & Technology Cohort virtual event, "Reimagining Digital Transformation with GenAI: Strategic Insights for Directors." This session explored the transformative potential of generative artificial intelligence (GenAI) and its strategic implications for organizations. Attendees discovered how GenAI could drive innovation, efficiency, and competitive advantage across various industries. 

Our expert panel, including Anthony Soohoo (venture advisor, AI Fund; board member, Spryker and Civio.ai; former executive vice president, Walmart), Kumar Parakala (president, GHD Digital), and Caroline Tsay (technology executive; board member, The Coca-Cola Company and Morningstar), provided in-depth insights and actionable strategies for leveraging GenAI in an organization’s digital transformation journey. Patrick Huston (retired Army general; board director, QuantumShield) did a fantastic job moderating.  

The key takeaways  and full event recording can be found below.

VIEW EVENT RECORDING

KEY TAKEAWAYS

AI in Business Strategy

Leveraging AI: Boards should do a deep exploration on how AI can be integrated into the company’s products and services. 
Funding and Problem-Solving: Consider how to fund AI implementation across the organization and what previously unsolvable problems AI might now be able to address. 
Risk Mitigation: Boards should engage in risk mitigation exercises, including evaluating whether AI could render any of the organization’s core products or services obsolete. 

Key questions for the boardroom:
* What use cases are we aiming to solve in the next 1-3 years? 
* How can AI improve employee productivity?
* How is AI enhancing operational excellence (e.g., global localization of marketing campaigns)? 
* How are we going to fund the implementation of AI across the organization? 
* What problems can we solve with AI that we couldn’t solve before?
* Can AI make any of the organization’s core products/services obsolete? 

Data Governance and Ethical AI 

AI Responsibility: Determine who is responsible for AI within the organization and on the board. This includes establishing clear safeguards to ensure the safety of AI applications, supported by high-quality, representative data.
Ethical Guidelines: It is essential to establish ethical guidelines for both the business and individual employees regarding AI usage.
Importance of Data Quality: Boards must oversee the quality of data used in AI systems and hold management accountable for transparency in data creation and synthesis. 
Reducing AI Hallucinations: AI hallucinations are decreasing as data quality improves. Directors should ensure continuous oversight to maintain this trend. 
 
Key questions for the boardroom: 
* Who is responsible for AI in the organization and on the board?
* What safeguards do we have in place to ensure safety in AI?
* Do we have high-quality and representative data?
* How can we monitor the quality of our data to remove biases? 

Company Culture and AI 

Employee Communication and Upskilling: Effective communication with employees is crucial, especially if AI might replace certain roles. Upskilling employees to manage other areas of the business is a key strategy.
Innovation and Experimentation: Boards need to foster a culture of innovation and experimentation while ensuring the safety and comfort of employees, customers, and stakeholders with AI.
Continuous Learning: AI is an evolving technology that requires continuous learning. Board members should be regularly updated by experts and educate themselves with trusted resources (find some useful resources below). 
Combining Strengths: Success in AI initiatives lies in effectively combining human strengths with AI capabilities. This synergy is essential for maximizing the potential of AI within the organization.  

Key questions for the boardroom:
* How do we maximize innovation and create an experimentation mindset while keeping employees, customers, and other stakeholders safe and comfortable with AI?
* How can the board ensure that AI remains a process of continuous learning?

AI Metrics 

Aligning AI with Business Goals: To measure the impact of AI on the organization, it’s important to set and track key performance indicators (KPIs). Initially, focus on three KPIs aligned with business goals, and monitor them monthly.
Employee Engagement: KPIs can also be used to track employee engagement with AI, such as the frequency and complexity of questions they ask or the length of prompts. 
Data Quality and Bias Monitoring: Monitor the quality of data, particularly in removing biases, with reviews every 3-6 months. 

Key questions for the boardroom:
* What are the key KPIs for AI initiatives, and how should we track them?
* How do we track employee engagement in AI? 

AI Frameworks for Board Members 

Simplifying AI Understanding: Breaking AI down into three components—compute power, algorithms, and data—can make learning easier and help board members better understand and manage AI-related issues.
NIST Framework: This is a very useful framework for board directors when considering AI implementation and decisions. 

Other Helpful Resources 

1. Beyond AI by GHD Digital
2. Reimagining Digital Transformation with GenAI: A New Framework for Success by Anthony Soohoo
3. Six Ways AI Could Disrupt Your Business by Harvard Business Review
4. Bosses and employees have wildly different expectations about how much time they can save with AI by Fortune
5. Lead To Disrupt: 7 Keys To Success In The Changing World by Kumar Parakala (our sponsor)
6. Andy Jassy on Productivity 

Thank you to our generous partner for hosting this event: