December 01, 2023
GenAI entered the public consciousness in a big way in 2023. It has made headlines, been talked about on chat shows — even our parents have logged on to try ChatGPT. We know it’s here, and here to stay. So how can you best harness your data and GenAI to meet your strategic goals?
It’s a question organizations around the world are struggling to answer. AI technology has moved so fast, and the possibilities around it are so vast that it can be tough to know where to focus your efforts. Is GenAI an area where leaders are thinking big but failing to deliver? MIT Sloan Management Review found in their research that 40% of organizations making significant investments in AI do not report business gains from it. What is causing this gap between investment and success?
One of the biggest issues is that some organizations are trying to jump to the end. They want chatbots and cool products, but any GenAI success is completely reliant on strong data foundations. Without widespread data literacy, high data quality and a solid data infrastructure, even the most powerful GenAI tool will fail.
Data is essential to GenAI success, and it takes a lot of work to get good data. Here are three data lessons that you can’t afford to ignore if you want to make the most of GenAI technology.
The value of data lies in informing decisions
Automating and streamlining processes with AI can empower humans to make better decisions, helping to accelerate success. It should enhance their potential rather than replace their expertise. However, it is easy to get caught up in operationalizing data without clearly defining its potential value in decision-making.
Understanding exactly how and where the data you’re collecting and analyzing can add value is critical. Will it increase revenue, decrease costs or strategically position your organization for growth?
By bringing people together behind a key data purpose and tangible outcomes, it becomes much easier to build momentum and trust around data and AI projects.
Getting value from data is an organizational effort
Extracting value from data and implementing AI tools successfully isn’t just about technical expertise. It’s about finding the right balance between people, processes and technology.
These three pillars must work in harmony to unleash your data potential, and people are the most important part of the equation.
Data isn’t created in a vacuum; it’s generated and shaped by people. This means the path to AI success starts with creating a culture that values and understands data through increasing data literacy in every corner of your business.
You can have the perfect data model and the most cutting-edge GenAI technology, but without data literacy, everything will crumble. You may end up with a culture where people believe they should trust their gut more than they should trust the data, and that is hard to repair.
Many organizations are failing to maximize data value
Those that undergo digital transformations and fail often follow a similar pattern: they aren’t providing the right access to data, they lack consistency in their approach and they lack trust.
This often means people look back on their efforts and conclude that the tools they implemented aren’t great or that they don’t have the right data inside their organization.
The reality is that plugging in a tool or solution without doing any foundational or cultural transformation is a flawed approach. Becoming a data-driven organization takes time, experimentation and a holistic joined-up approach. You're probably not going to get everything right the first time you try it, but building a strong data foundation and focusing on key outcomes and cultural change will support long-term success.
Agile development is key. This involves starting with manageable projects, learning from them and evolving over time. It's not about trying to achieve everything all at once, it’s about embracing iterative and responsible improvements that move with your shifting goals.
As GenAI’s capabilities grow, strong data foundations and a connected data culture become non-negotiable. By focusing on these core data lessons and approaching GenAI with an open and agile mindset, organizations can bridge the gap between investment and results, turning potential into reality.
