New groundbreaking study on AI and the future of business
highlights critical strategies for C-suite executives to transition
to an augmented organization.
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.
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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
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Alexander Bock Global Senior Manager Communications Telephone:
+49 89 540338029 E-Mail: alexander.bock@bearingpoint.com