Why AI Transformation Is Worth Sticking Your Neck Out For

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As AI continues to transform industries, organizations need to take bold steps to integrate AI into their digital transformation strategies—or risk falling behind as more innovative competitors surge forward.

Many companies need an innovation hero to lead that charge. Do you want to be the one to “stick your neck out” pushing for large-scale AI-driven digital transformation? 

Of course, there are risks involved when leading a dramatic transformation. If things go wrong, could you possibly be fired? Sidelined? Demoted? Disgraced?

Yes! This happens all the time to transformation leaders. So before taking that leap, let’s take stock of the risks involved in AI transformation, and then look at why it may well be worth the risk anyway.

THE RISKS

Pushing for AI-driven digital transformation can be challenging. As an innovation champion, you may face several risks:

1. RESISTANCE AND APATHY

Resistance to change is a common challenge when introducing any new technology or process, and AI is no exception. Some of your colleagues may feel threatened by the potential impact of AI on their jobs or may simply be comfortable with the status quo. 

This resistance could slow down the progress of your AI initiative, making it difficult to meet deadlines and achieve your goals. Widespread opposition could even derail your project entirely, leading to wasted resources.

And even when people are not actively opposing your AI transformation efforts, their apathy and lack of support could still drive down adoption rates and diminish ROI. If employees don’t fully understand AI’s capabilities and the value it can bring, they are less likely to embrace or utilize it. A lack of knowledge and skills in leveraging AI tools can be another key factor in people’s reluctance to get on board with your initiative. 

2. POWER POLITICS AND INTERNAL COMPETITION

Leading such a high-impact initiative as AI transformation most likely makes you an important figure in your organization—you may be given a significant budget and the authority to drive key changes in the company. 

This all sounds good, but here’s the catch: while your colleagues may support this AI initiative, some might think you’re not the best person to lead it. Perhaps they feel they are more qualified to bring the company into the AI age, putting your leadership at risk of being undermined.

This power struggle can become cumbersome, and if you don’t handle it correctly, the other person may prove that you are not the right person for the job after all, giving them the opportunity to step into that role.  

What will become of you then?

3. ETHICAL CONCERNS AND REGULATORY COMPLIANCE

AI raises several ethical concerns: potential for algorithm biases, privacy issues, and the risk of malicious use. As an AI advocate, you may face scrutiny and criticism if these concerns are not properly addressed. 

Depending on your industry, there may also be regulatory and compliance requirements that must be met when implementing AI solutions. Failure to navigate these ethical and legal considerations, especially in heavily regulated sectors like healthcare or finance, could result in serious consequences such as hefty fines, public backlash, damage to your organization's reputation, and potential legal action. 

4. FAILURE AND REPUTATIONAL RISKS

Failure is a real possibility when you step up into any leadership role, including AI transformation.

There is a lot of hype around AI, which can make it easier to get funding but also harder to deliver on expectations.

Despite your best efforts, there’s always a risk that your AI initiatives may fail to deliver the promised results or on the promised timeframe. This could be due to technical challenges, data issues, implementation issues, or a lack of adoption by end-users. You might make mistakes along the way that would contribute to those problems—and you most likely will, especially when leveraging a rapidly evolving technology like AI.

So with all these risks, why the heck would you lead an AI transformation?

THE REWARDS

Well, first of all, these risks won’t necessarily all become reality—many strategies exist to avoid these problems. And more importantly, there are significant rewards to leading an AI transformation journey. 

Let’s look at a few.

1. CUSTOMER JOY

Think about how your customers will feel when your AI transformation pays off—when hyper-personalized recommendations, streamlined processes, and intuitive interfaces—made possible by AI—lead to improved customer experiences.

Customer joy is a true win-win situation because not only does it benefit customers, but the employees of your company also feel a sense of pride knowing customers are having a better experience with the brand.

2. JOB CREATION AND EMPLOYEE EMPOWERMENT

While some may fear that AI will lead to job losses, successful AI implementation can actually create new job opportunities. As more organizations adopt AI technologies, there will be a growing demand for professionals with AI-related skills. The World Economic Forum estimates that AI could generate as many as 97 million new jobs by 2025.

AI can also empower employees and enhance their work experiences. According to a 2023 MIT Sloan study, generative AI can improve a worker’s performance by as much as 40%. By automating repetitive tasks and augmenting human capabilities, AI can free up employees to focus on higher-value work that requires creativity, critical thinking, and emotional intelligence. 

This shift can lead to more fulfilling and engaging roles for employees, as they can leverage their unique human skills and contribute to their organization's success in more meaningful ways. 

3. COMPETITIVE ADVANTAGE

An AI-driven digital transformation empowers your company to optimize operations, leverage data for actionable insights, and innovate new products and services, putting you in a better position to compete. 

In fact, over 60% of investors believe accelerated adoption of AI is critical to generating value, according to a 2023 PwC survey. AI solutions can help drive increased market share, higher profitability, more positive brand image, and greater resilience in the face of disruption.

4. LEARNING AND GROWTH OPPORTUNITIES

When you pursue an AI transformation, you’re often learning as you go. It’s an excellent professional and personal growth opportunity. 

First off, you'll gain a comprehensive understanding of AI technologies, integration strategies, and best practices. You'll learn to think critically about how AI can be leveraged to achieve business objectives, drive innovation, and create value for your organization.

But beyond these professional learnings, it’s also a great opportunity to learn more about yourself—your leadership style, your ability to handle ambiguity and complexity, and your resilience in the face of challenges.

5. SOCIETAL IMPACT AND LEGACY

Driving AI-driven digital transformation within your organization can have a positive impact that extends beyond your company's walls. By demonstrating the value and potential of AI, you can contribute to the broader adoption of this transformative technology across industries. 

Your efforts can help spur innovation, drive economic growth, and address societal challenges. Being a part of this AI revolution can help you leave a lasting legacy in your field.

6. DESTINY   

What were you put on this Earth to do? I believe each of us was put here for a reason, and part of the journey is to discover what your purpose truly is. 

You may not know what your purpose is right now, and that’s okay because many people don’t. But if your company needs to change and transform, and you feel inspired to help lead, maybe there’s a reason you feel that inspiration. 

Maybe it's your destiny. Perhaps it means you need to overcome your fears and step up.

William Shakespeare said, “Some are born great, some achieve greatness, and some have greatness thrust upon them.” 

You might find yourself that person to whom greatness is thrust upon. 

IT'S TIME TO STEP UP

If you think that describes you, and you are choosing to step up to lead an AI-driven digital transformation despite the risks and uncertainties, first of all, you have my great respect, and second of all, I’d love to help.

By taking the leadership reins, you can play a role in helping increase the stability of the lives of perhaps hundreds, thousands, or even tens of thousands of people.

YOUR TURN

What risk or challenge would you be most concerned about when leading an AI-driven transformation in your organization? Share your thoughts in the comments below.

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Howard Tiersky is the founder of FROM, The Digital Transformation Agency where he works with leading brands on digital transformation.

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