From pilot to production: Unlocking the full potential of generative AI in your organisation

Artificial intelligence (AI) isn’t a newcomer to the business world. For years, organisations have experimented with this technology to optimise operations, unearth insights and drive innovation. 

But amidst the optimism lies a stark reality: only 54 per cent of organisations’ AI projects move from the pilot phase to production, according to Gartner. Why is that? The answer often lies in organisations’ inability to align these projects with a clear business value proposition and to demonstrate their return on investment (ROI). 

Fortunately, I believe the latest iteration of AI – generative AI – promises a seismic shift because it is simply more accessible. By using natural language interfaces, generative AI brings profound analytical and creative prowess within the reach of many more people. 

Imagine a world where every team member, from marketing to human resources (HR), can harness AI-driven insights to refine strategies, predict outcomes and craft innovative solutions. Generative AI brings this democratisation of data to the table. 

The significant economic and productivity opportunities of generative AI 

A recent report by The Tech Council of Australia and Microsoft demonstrates generative AI’s vast economic potential. If organisations adopt this technology at an accelerated pace, it could potentially inject up to $115 billion annually into Australia’s economy by 2030. These gains will come from two key sources: 

• Improving existing industries: generative AI can significantly revamp current business models, making them more efficient and responsive to changing market needs. 
• Creating new products and services: the technology can foster innovation, creating entirely new offerings to cater to emerging customer needs. 

Yet, the real promise lies in productivity. The report also highlights that generative AI has the potential to automate and augment up to 44 per cent of Australian workers’ task hours at its current capability.  

This doesn’t signify job losses. Instead, it can liberate employees to focus on higher value-adding activities, elevating the quality of their work and adding more value to their organisation. It also allows organisations to achieve more with limited resources, which is vital to beating inflation. 

Roy Hill is one organisation that is already realising the productivity benefits of generative AI. In late 2022, the West Australian iron ore mining company began experimenting with ChatGPT to bolster employee productivity. The impressive results prompted Roy Hill to create a similar, customised generative AI application called RoyBot in March 2023. 

RoyBot is designed to respond to a range of employee inquiries related to production data, company policies and procedures, as well as general HR information. The interactive chatbot’s advanced language-processing capabilities enable it to interpret requests and provide immediate, easy-to-understand responses. About 30 per cent of Roy Hill’s workforce is actively using RoyBot, and its feedback mechanism enables the company to enhance its capabilities and align them with employee needs. 

The generative AI solution is a testament to Roy Hill’s commitment to ensure employees have access to timely and accurate information, facilitating more informed decision making and supporting clear communication within the organisation. According to Roy Hill’s Executive General Manager of Technology, Kate Flanagan, “Innovation is intrinsic at Roy Hill. We eagerly embrace opportunities to make work as effective and efficient as possible, enhancing the workplace experience for our people”. 

Strategically embracing generative AI 

While the appeal of generative AI is clear, its successful adoption demands a holistic approach where organisations blend it into their overarching strategies. 

Here are some of the areas where I see organisations getting stuck. Keeping these front of mind will help you accelerate your generative AI journey. 

Aligning use cases with organisational goals 

An AI initiative that doesn’t tie back to the broader organisational objectives can quickly turn into an aimless, expensive venture. AI projects should be viewed through the prism of the company’s overarching mission and goals. Will the AI-driven solution propel the organisation closer to its five-year vision? Does it align with the ethos and values of the brand? 

By grounding AI projects in the company’s broader purpose, you ensure that every dollar and hour your organisation invests yields long-term dividends. 

Unearthing real-world use cases 

The fascination with AI can often be blinding and it’s tempting to deploy solutions because they are new and exciting but the key is to ensure they actually address tangible challenges. This involves opening the channels of communication across departments and teams – from sales and marketing to HR and finance. Each team, with its unique perspective, can shed light on the daily hurdles they face and the real need within your organisation. 

Once these pain points have been identified, AI solutions can be customised to address these issues, thereby ensuring the technology serves a clear, pressing purpose. 

Prioritising use cases 

After uncovering the most valuable use cases, it’s critical that you assess and analyse them. In the expansive landscape of AI, the possibilities may seem endless, but not all use cases are created equal. By analysing factors like potential ROI, scalability, barriers to implementation and future relevance, organisations can direct their resources towards AI applications that promise the most significant impact. 

Below is a simple but effective framework I like to use to help customers identify their best use cases. Think about the expected benefits from the use case and then the potential barriers to implementation. Plotting these on the grid below will help you focus on the right use cases first. 

Measuring success 

As with any strategic undertaking, the success of AI adoption hinges on clear benchmarks and metrics. How are you going to measure success? 

To fully understand the impact of your AI efforts, it’s essential to delineate both hard and soft ROI measures. How do these investments translate into tangible financial outcomes? Moreover, what are their broader, more intangible benefits? 

Tools such as Microsoft Viva Insights can offer valuable insights into employees’ productivity and their overall job satisfaction, enabling organisations to gain a more comprehensive snapshot of an AI initiative’s effectiveness. 

Ultimately, the goal is to ensure that every AI endeavour aligns seamlessly with the organisation’s overall objectives and adds value. 

Championing change 

Any technology transformation, especially one as profound as AI, requires a cultural shift. It’s not just about updating software or integrating new tools. It’s also about reshaping mindsets, workflows and hierarchies. 

Driving this change requires a multi-pronged approach. Workshops and training sessions can demystify AI, making it more accessible to all team members. Establishing AI champions or task forces within departments can provide a go-to resource, ensuring consistent guidance and support during the transition phase. 

Committing to responsible AI practices 

AI is a powerful tool that can transform businesses and society, but it also comes with ethical and social implications. Organisations must ensure their AI systems are aligned with their values, principles and goals, and that they respect the rights and interests of their stakeholders, such as customers and employees. This means adopting responsible AI practices that go beyond complying with existing laws and regulations. 

One example is developing a responsible AI framework for your organisation and considering how new and existing systems will be assessed in terms of impacts, risks or unintended consequences. Another example is considering the use of feedback mechanisms to monitor and evaluate AI outcomes, and address issues and risks as they arise. 

By adopting responsible AI practices, organisations can enhance their trust and credibility with their customers, employees and other stakeholders. 

Prospering in the new AI era 

Generative AI isn’t just another tech trend. It’s a monumental shift that is poised to redefine the business landscape. Realising its full potential requires more than technological mastery – it demands strategic foresight, organisational alignment and a commitment to change. 

Organisations that adopt generative AI strategically will not only prosper but also shape the economic trajectory of the respective regions they operate in. 

ENDS