By Subbu Iyer & Siddharth Patel
The key function of the future is Innovation. It involves the collaboration of humans and machines, enabling them to remain relevant and capable to function effectively in a digital landscape as both Creators and Users. Necessitating a transformation guided by Intent and fueled by Design. The Power is generated from a collective Force aimed at the greater good, harnessing human emotion to enhance the Quality of Life for everyone with the advancement of Technology to convert data to Intelligence in real time. Visualizing and Preparing for this eventuality is the essence of Design Learning; not discreetly but rather continuously.
The role of humans is to model and generate Solutions while the role of Machines is to allow its Personalized Application to a segment of one.
Breaking the Chord
For succeeding at Applied AI, it is necessary to break the chord from the past that was Information driven architecture. The Intelligent Architecture that Digital represents is dramatically different. Working at transactional AI applications may be fun but it will not respond to either Returns on Investment (R.O.I.) or Returns on Assets Deployed (R.O.A.D.) as most enterprises are already beginning to discover to their dismay. Clarity is needed on where AI / GI investments will generate the returns; Innovation over Competition must be the Key Performance Indicator (KPI).
In the US, optimistic projections suggest that AI could boost annual GDP growth by 0.5 to 1.5% over the next decade. That's $1.2 trillion to $3.8 trillion in real terms.
China's AI market is projected to exceed $61 billion by 2025. VCs have invested approximately $120 billion in the AI ecosystem of China, particularly in the autonomous vehicles, robot sensors and IT Hardware.
The Japanese government's Society 5.0 concept aims to integrate advanced technologies, particularly AI, into all aspects of daily life, connecting cyberspace and physical space.
India’s artificial intelligence market is projected to touch $17 billion by 2027, growing at an annualized rate of 25-35% between 2024 and 2027.
Germany's ambitious AI initiatives extend beyond corporate investments, as evidenced by the country's allocation of the EU's largest single funding for AI brain data research. This underscores Germany's commitment to advancing AI-driven scientific research and fostering interdisciplinary collaborations.
Source: World Economic Forum (WEF); May 2024
The data from WEF highlights that investments in AI and GI are driven by a desire for Innovation rather than simply maintaining existing operations. This is a pivotal moment that calls for Transformation instead of merely incremental changes. We are entering an era of fundamentally Systemic Innovation. Throughout history, every major technological advancement—such as Fire, Electricity, Locomotion, Telecommunication, the Internet, and now Digital technology—has significantly disrupted our way of life. While these disruptions were once gradual, today's changes are happening at an unprecedented speed, demanding a stronger approach to adaptation and implementation. If managed well, this transformation could greatly improve life for everyone across the globe. However, there is a serious flip side risk that, without democratization, a few powerful entities may exploit this opportunity, potentially leading life on Earth to the brink of disaster.
If the emphasis is on making incremental adjustments and tackling existing problems, it is effectively accruing debt with a savings strategy. This suggests a faultline in the Risk Strategy, trying to repair outdated systems that do not meet future demands in five essential areas: Data, Talent, Resources (Materials/Energy), Financial Capital, and Intelligent Infrastructure. Illustration 1 manifests that for successful transformation, it is crucial to begin with a clear definition that aligns with emerging goals, ensuring that all five dimensions of the transformation process are ready to function at the specified maturity level. The systemic transformation must encompass the current issues, as this is when investments can start to yield positive returns.
Digital Maturity Demands
Referring back to the above Illustration 1, it is mandated that the route to a successful AI / GI adaptation is layered through a definitive digital strategy founded on the five essential dimensions:
Digital: A Device, Channel and Medium independent foundation that demands a multimodal approach to Data.
Personal: A necessity for accelerating Human Capital that connects Creators and Users through an iterative but agile journey of Education, Ownership and Commitment.
Ecosystem: A Digital Connection that is well beyond the conventional enterprise and is Globally Local (Glocal) in nature.
Open & Collaborative: All the above three converge to a Data Continuum from Creation to Conversion across the Circle Of Life.
Intelligence: Only when the above 4 dimensions are satisfied can Intelligence in Real Time Operate.
One thing we’ve learned: the business goal must be paramount. In our work with clients, we ask them to identify their most promising business opportunities and strategies and then work backward to potential gen AI applications. Leaders must avoid the trap of pursuing tech for tech’s sake. The greatest rewards also will go to those who are not afraid to think big. As we’ve observed, the leading companies are the ones that are focusing on reimagining entire workflows with gen AI and analytical AI rather than simply seeking to embed these tools into their current ways of working. Source: Alex Singla; Senior partner and global Co Leader of QuantumBlack, AI by McKinsey
The Key Takeaway
The honeymoon phase of generative AI (gen AI) is over. As most organizations are learning, it is relatively easy to build gee-whiz gen AI pilots, but turning them into at-scale capabilities is another story. The difficulty in making that leap goes a long way to explaining why just 11 percent of companies have adopted gen AI at scale, according to our latest tech trends research. Source: McKinsey Global Survey on the state of AI in early 2024.
Intelligence has always been a personal experience, and when combined with digital technology, it lays the groundwork for the various applications of AI across all aspects of life. This is where connections are made replacing Globalization with Glocalization. While enterprises may possess a design playbook, it is crucial for them to be adaptable and responsive to the advancements and evolution of digital technology to enhance their success in adoption. Now is the moment for Value Creation to become the primary focus with a rewired design playbook.
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