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More Than A Novelty Tool: How To Identify Consequential AI

Nov 20, 2024 - forbes.com
Raj De Datta, CEO of Bloomreach, discusses the importance of distinguishing consequential AI from the noise in the current hype cycle. He identifies three criteria for consequential AI: it must increase a business metric by at least 10%, have a differentiated impact on customer experience, and dramatically improve team productivity. He argues that most AI innovations today are merely co-pilots, offering small efficiency gains but not fundamentally changing businesses.

De Datta suggests that for AI to be truly consequential, it needs to be the pilot, not just the co-pilot. This shift in understanding and application of AI, he argues, is crucial for businesses to stay ahead. He concludes by stating that businesses that can identify and implement AI that meets his criteria will lead their industries into the new, AI-powered future.

Key takeaways:

  • For AI to be consequential, it needs to meet at least two of three criteria: meaningfully increase a business metric by at least 10%, have a differentiated impact on customer experience, and dramatically improve team productivity.
  • Most AI innovations are focused on AI as a co-pilot, which may offer quick wins or small efficiency gains, but don't fundamentally change businesses.
  • For AI to be truly consequential, it needs to be the pilot, shifting human roles from execution to strategy, creativity, and staying ahead of customer expectations.
  • Businesses that lean into AI in a meaningful way today will have the greatest advantage tomorrow, as AI becomes more ubiquitous and democratized.
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