Today, most people agree that creative AI will have a huge impact on business, and those who don’t adapt will be quickly forgotten.
As companies learn more about AI, they want proof, or real business data, that show how it is actually helping them make more money and run their businesses better.
They shouldn’t and can’t just believe what the seller says. Still, it’s not simple to find a direct link between something like Microsoft Copilot and how well a business does generally.
After that, should CIOs just believe it? Jamin Ball, an investor, says in this week’s Clouded Judgement email that most businesses might not have a choice. He thought that they might not see the results for a while, which would make their choice to buy very hard.
Ball Has This To Say:
„The world is changing right now—AI is a huge platform shift. And if you don’t use it or spend money on it, you could lose market share and become less important over time. This is because your rivals are putting money into AI, so you need to do the same. At the end of the day, these investments may not instantly lead to better business outcomes (i.e., more money), but they do make things better for end users. And it may very well lead to better “other” measures like retention or churn. If your competitors are making better experiences for end users while you’re not, you could be in trouble soon or in the middle term, Ball wrote.
But that isn’t enough for CIOs to leap into an expensive new technology without thinking it through first. They want more information. When it comes to justifying costs, they and the company CFO have to deal with the present moment. If they are spending a lot of money, when can they properly expect to see a return on their investment?
On the other hand, people who compare AI to electricity might think that this is its electricity moment, like when companies switched from steam to electricity in the late 18th century. It was there, but you could ignore it and keep going with steam. Eventually, you were going to get steamrolled.
That being said, the answer might lie with a smart startup. More likely, though, companies of a certain size will pay Deloitte, McKinsey, and Accenture a lot of money to help them figure it out. Interestingly, that will only make it cost more and take longer to value.
Also Read: After the Apple Scandal, Figma Stops Working on Its New Ai Feature
Garcia of the Grateful Dead once sang in “The Wheel,” “You can’t go back and you can’t stand still.” “If the thunder doesn’t kill you, the lightning will.” As they try to figure out what to do next, CIOs must decide if they are moving their companies slowly toward the future or wasting money on things that won’t work.
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