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There is a massive invisible earthquake happening right now. It is the proliferation of artificial intelligence, and it is real. After years of seemingly buzzword references, the adoption of AI, or lack thereof, has, in less than a year, started destroying businesses and catapulting others.
Are you ready? There are three things every company should do right now.
But first, imagine you are the company that went from $14.5 billion in value to nearly zero in a matter of months because of a free AI product. Next, imagine you are the company that created an incredible new website app only to have others duplicate it in seconds.
Now, imagine you are the company that went from $40 million to $400 million because you leveraged great data hygiene—the process of ensuring data is clean, accurate and organized—and overlaid predictive technology to drive the imperfections out of your business and provide more value to your customers.
These are the stories happening right now, and they are accelerating with every day that passes.
Last August, Gartner published its latest hype cycle for emerging technologies, showing we have already entered the trough of disillusionment for generative AI. This means we are about 24 months from entering the plateau of productivity. Seeing as how it takes about 24 months to complete any decently robust data-structuring project, there is literally no time to waste.
To help get your mind around how to think about AI, focus on the four emerging themes: autonomous AI, boost developer productivity, empower with total experience, and deliver human-centric security and privacy.
McKinsey recently reported that 70% of organizations have adopted AI in at least one business area, and by 2030, AI could deliver up to $13 trillion in annual global economic activity. However, AI requires a foundation of high-quality, structured data, and yet, according to McKinsey, fewer than 25% of companies have achieved data quality to enable advanced analytics. K2view believes this number might be as low as 2%. From what we see as one of the world’s most active investors, it appears the number is much closer to 2%.
Without rigorous data hygiene, tools like AI, productivity, automation and predictive are doomed to deliver flawed outputs and misleading insights and, ultimately, hinder decision-making rather than enhance it. This means many businesses will never achieve positive outcomes or lead with false positives due to the old adage “garbage in garbage out.” For businesses that embrace data quality and AI, the potential to increase efficiency and create customer-centric products has never been greater. However, for companies that don’t, the cost of inaction will be fatal.
To stay competitive, companies and individuals alike must urgently disrupt themselves to adapt to this new way of doing business. This revolution impacts every sector—yes, including trades, services and more. In today’s hyper-digital economy, every company is now in the data business—whether they know it or not.
Data hygiene and structure: the heartbeat of modern business
Businesses need to partner with a company that understands data structure or hire a chief information officer if they have the budget to do so. Effective data hygiene is non-negotiable. Clean data, along with a strong data structure, is what fuels AI’s powerful capabilities.
Imagine an assembly line where each component needs to be precisely measured and perfectly positioned. If the materials are disorganized, the final product will be compromised, no matter how efficient the assembly process is. The same principle applies to data and AI. A strong data foundation allows for seamless integration of modern technology across all departments.
Software composers: the new drivers of AI-integrated business
While data scientists and software developers are critical to building and maintaining AI tools, companies now need a new breed of professionals: software composers. These individuals have a unique combination of technical and creative skills, able to orchestrate complex AI-powered solutions that align with a company’s goals and integrate seamlessly across departments. Think of them as conductors in an orchestra, bringing together various AI tools and data streams to form a harmonious, cohesive output.
Software composers differ from developers in that they look beyond code. They understand the business at a systems level, bridging the gap between technology and organizational goals. They have the insight to see how AI in human resources, finance and customer service can be interwoven to create efficiencies and synergies.
The most surprising part? Many organizations already have team members with the skills to be software composers, often untapped due to narrowly defined roles. Identifying and nurturing these talents internally can be a cost-effective way to disrupt and evolve from within.
Rethink workforce structure: breaking down silos
To fully leverage AI tools, businesses must rethink the traditional departmental silos. The nature of AI is inherently interconnected, making it an optimal solution for organizations ready to operate as a single, cohesive unit. AI works best when it can access data across departments, enabling insights that bring together previously isolated pieces of the organization.
Companies must disrupt the idea of separate, isolated functions and instead focus on an integrated approach that allows every function to work from a shared set of data and goals.
Start these three things right now to drive the imperfections out of your business:
1. Implement data discipline: Partner with or hire a company or CIO that understands how to instill good data-hygiene practices across all departments to integrate AI-ready data infrastructure.
2. Identify and empower software composers: Find software composers who work across the business and have relentless curiosity and appetite for learning, testing and implementing modern technology and best practices.
3. Tear down departmental silos: Develop a culture where data quality is everyone’s responsibility, from entry-level staff to executives.
The imperative to disrupt and redesign from within
Data will always lead you down the path to decisions that will lead to better outcomes. In order to adapt, businesses must adopt a mindset of continual self-disruption. Instead of building on outdated frameworks, leaders need to rethink their company’s foundational design, keeping data, modern technology and AI at the core.
The opportunity for transformation is profound, but it comes with an urgent mandate. Act now, redefine your workforce, and embrace the data-driven future—or risk being left behind.•
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Christopher Day is CEO of Elevate Ventures.
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