Paul Griggs, the President of PwC in the United States, believes that companies are misunderstanding artificial intelligence (AI) in two significant ways, leading to financial repercussions.
Griggs explains that firms often delegate AI responsibilities solely to the Chief Information Officer (CIO) or Chief Technology Officer (CTO), thereby missing out on the full potential of this technology. Instead, he advocates for recognizing AI as a broad transformation across the entire business.
“It is a change management process that involves all employees and all processes within the organization,” he stated.
Having joined one of the Big Four firms as an intern nearly 30 years ago, Griggs sees AI as the greatest professional opportunity he has encountered in his career. He is confident that AI will boost productivity, but the critical question remains: how will businesses leverage this potential?
“The simplest answer is to translate these benefits directly into financial outcomes,” Griggs noted. “The more challenging inquiry we must ask ourselves is: where in my business are the growth and development opportunities, and am I prepared to invest the ‘AI dividend’ in harnessing those?”
AI Won’t Fix Inefficient Businesses
The second misconception, according to Griggs, is the belief that AI can rectify an underperforming company. He asserts that if businesses apply AI to inefficient processes, they will merely end up with more complicated workflows that are AI-enabled.
“If you layer AI onto chaotic processes, all the technology will do is reveal how disorganized they are,” he explained.
Therefore, Griggs recommends that companies should overhaul their processes and approach AI implementation as a comprehensive transformation of the entire organization. He emphasized that businesses must foster customer relationships, engage clients, and create new growth opportunities.
This necessitates a careful analysis of each business process to determine where the incorporation of technology is genuinely beneficial.
