How CEOs Can Avoid a Blindspot for AI: A Tale of Vision and Oversight

August 30, 2023
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A new look at Business Strategy!

Introduction

I recently had an experience that I want to share. To maintain confidentiality, I will use a pseudonym for the company and share the story of its CEO to illustrate key strategies for successful AI adoption.

In today’s rapidly evolving technological world, Artificial Intelligence (#AI) stands out as both a challenge and an opportunity for businesses. While integrating AI can lead to revolutionary advancements, CEOs must ensure alignment with company vision, seek external insights, uphold ethical standards, and foster continuous learning.

The Story of TechSolve Inc. As the CEO of TechSolve Inc., Emily was a driven leader who always sought to stay ahead of the curve. However, at an industry conference, she realised that more than her company’s tech-savviness was needed to succeed in the long run. She learned about the transformative potential of AI in various sectors, such as healthcare and transportation and recognised that her company needed a comprehensive strategy for AI integration. Not a lack of technology held them back, but a lack of vision and oversight. Emily knew that they needed to act fast to avoid a bleak future.

The Wake-Up Call

Emily’s first realisation that she had a blindspot for AI came when she attended an industry conference. There, she witnessed presentations on AI-driven algorithms that were significantly changing the game in healthcare, transportation, and retail. These applications were helping organisations reduce costs, improve customer experiences, and even create new business models (McKinsey & Company, 2018).

“What are we missing?” Emily pondered. It dawned on her that the lapse was not in the lack of technology but in the lack of vision and oversight. She returned to the office, determined to turn things around.

The Fable of The Emperor’s New Code

Emily’s situation is reminiscent of Hans Christian Andersen’s fable, “The Emperor’s New Clothes.” In the story, the emperor, swayed by flattery and technical jargon, ends up in a public parade without any clothes, believing he is wearing invisible garments only the wise can see. Similarly, CEOs often find themselves misled by buzzwords and grand promises, thinking that merely adopting AI will solve all issues (Davenport & Ronanki, 2018). The first step to avoiding a blindspot is recognising it.

The Board Meeting Redux: Vision and Oversight

Armed with this newfound understanding, Emily convened another board meeting. She articulated the blindspot succinctly: “Our biggest mistake is not that we haven’t integrated AI but that we haven’t framed it within our broader company vision and haven’t exercised adequate oversight.”

Her roadmap included three focal points:

  1. Aligning AI with Business Strategy: AI wasn’t just a tool to be tacked on; it needed to serve the larger business goals. The board agreed to consult external AI experts to align the technology with strategic objectives.
  2. Oversight and Ethics: The board resolved to form an AI Ethics Committee. The committee would not just be a ceremonial cog but actively vet AI projects for:
    • Fairness – The business case that can demonstrate quantitative, measurable business benefits,
    • Ownership – A business executive/s ownership pre & post implementation (KPI),
    • Vision – Aligned to Business Vision and Corporate Strategy,
    • Data Privacy and
    • Ethical Considerations (Fjeld et al., 2020).
  3. Continuous Learning and Adaptation: Emily emphasised the importance of creating a learning organisation. Investing in regular training programs was a way to ensure everyone understood the opportunities and limitations of AI (Schwartz et al., 2019).

The AI Fairy Godmother: External Expertise

TechSolve hired me as an Interim AI Executive Consultant to serve as an external voice. My role was to offer an unfiltered, expert view of the company’s AI initiatives. “An external perspective can illuminate hidden blindspots,” I noted in my first meeting. Citing IBM’s 2019 study on AI adoption, I emphasised that companies successful in AI adoption usually sought external expertise to supplement in-house capabilities (IBM, 2019).

The Investment Mirror: Reflecting on Fairness and Bias

The AI Investment Committee went to work, scrutinising every project. In one instance, they discovered that the algorithm designed for serving customer queries had a geolocation & gender bias, inadvertently favouring certain customers based on which suburb they live in and/or if they are male. The algorithm was recalibrated, avoiding what could have been a damaging ethical misstep and a PR nightmare.

The Never-Ending Tale: A Cycle of Learning and Adaptation

Emily’s leadership in acknowledging and addressing her blindspot transformed TechSolve into a model for AI integration grounded in a strong business strategy, ethical oversight, and a learning-based approach. Instead of viewing AI as a one-time investment, the company adopted it as an evolving, transformative journey.

Lessons Learned

Emily’s tale is one of vision and oversight, from which CEOs can glean the following lessons:

  1. Strategic Alignment with AI: AI is a technological initiative and a transformation that must align with the company’s broader goals.
  2. Seek External Expertise: Experienced External Consultants can bring fresh perspectives, helping to identify and correct blindspots (IBM, 2019).
  3. Ethics are Non-Negotiable: An AI Ethics Committee provides essential oversight, ensuring ethical considerations are at the forefront (Fjeld et al., 2020).
  4. Continuous Learning and Adaptation: Staying Ahead of the Curve:A learning organisation adapts to AI’s rapidly changing landscape, thus reducing the chances of future blindspots (Schwartz et al., 2019).

In the world of AI, standing still equates to moving backward. Technology is evolving at a relentless pace, with new algorithms, techniques, and applications emerging almost daily. More than merely keeping up is required; businesses must be proactive in their approach.

Emily understood this intuitively. “AI is not a static field,” she often remarked in meetings, “What is revolutionary today might be obsolete tomorrow.” Recognising this, she pushed for not just occasional training sessions but for the creation of a learning ecosystem within TechSolve. This ecosystem included:

  1. Regular Workshops: Led by in-house experts and external consultants, these workshops introduced teams to the latest advancements in AI, ensuring the company was always at the forefront of knowledge.
  2. Collaborative Projects: TechSolve began partnering with universities and research institutions. These collaborations constantly brought fresh ideas and innovative solutions into the company.
  3. Feedback Mechanisms: Just as AI learns from feedback, so should organisations. TechSolve instituted regular feedback sessions after AI project deployments. Lessons from one project informed the next, creating a virtuous improvement cycle.

This commitment to continuous learning and adaptation did more than keep TechSolve updated; it positioned the company as a thought leader in the industry. By instilling a culture of perpetual learning, Emily ensured that her company was always ahead of the curve, ready to harness the full potential of AI.

TechSolve’s tale had a happy ending, but only because Emily recognised her blindspot for AI and took comprehensive action. The moral of the story is that vision and oversight are crucial. CEOs should approach AI as a technological asset and a transformative force that requires thoughtful strategy, ethical checks, and continuous learning.

Key Takeaways for CEOs:

  1. Strategic Alignment: Ensure AI adoption aligns with the company’s overarching goals.
  2. Outside Perspective: Engage external consultants to provide fresh, unbiased viewpoints.
  3. Uphold Ethics: Prioritise ethical considerations throughout the AI integration process.
  4. Promote Continuous Learning: As AI evolves, so should the organisation’s understanding and application.

Conclusion:

CEOs must acknowledge that AI is both a tool and a force for change to leverage its potential in their company fully. They can achieve this by aligning their vision, seeking outside expertise, prioritising ethics, and promoting ongoing learning. Companies must adapt their strategies as AI evolves to incorporate it effectively and responsibly.

CEOs must have a clear vision and maintain oversight to ensure their company’s success and positive reputation. By proactively identifying and addressing potential issues, CEOs can avoid blind spots and ensure ethical and profitable outcomes. This approach builds stakeholder trust, benefits employees, and fosters long-term success in the marketplace through transparency and accountability.