{"id":655,"date":"2023-11-01T08:00:00","date_gmt":"2023-11-01T15:00:00","guid":{"rendered":"https:\/\/www.microsoft.com\/en-us\/microsoft-cloud\/blog\/?p=655"},"modified":"2025-06-24T12:19:02","modified_gmt":"2025-06-24T19:19:02","slug":"building-a-foundation-for-ai-success-business-strategy","status":"publish","type":"post","link":"https:\/\/www.microsoft.com\/en-us\/microsoft-cloud\/blog\/2023\/11\/01\/building-a-foundation-for-ai-success-business-strategy\/","title":{"rendered":"Building a foundation for AI success: Business strategy"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">This is part two of a six-part blog series\u2014see <a href=\"https:\/\/www.microsoft.com\/en-us\/microsoft-cloud\/blog\/2023\/10\/12\/building-a-foundation-for-ai-success-a-six-part-series-on-ai-leadership\/\">part one<\/a> and download the <a href=\"https:\/\/info.microsoft.com\/ww-landing-building-a-foundation-for-ai-success.html?culture=en-us&amp;country=us\">white paper<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"business-strategy-is-the-first-step-toward-ai-success\">Business strategy is the first step toward AI success<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">AI is applicable to so many different use cases, from content generation to code generation to prediction to summarizing vast amounts of data. But what makes AI valuable is the impact it can have on business goals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this post, we\u2019ll focus on business strategy\u2014the first of five categories that support the ability to deliver meaningful, sustainable, and responsible value creation with AI. Subsequent posts in this series will cover best practices for the remaining categories: data and technology strategy, AI strategy and experience, organization and culture, and AI governance.<\/p>\n\n\n\n<div class=\"alignwide is-style-inline wp-block-bloginabox-theme-promotional\">\n\t\n<div class=\"promotional promotional--has-media promotional--media-right\">\n\t<div class=\"promotional__wrapper\">\n\t\t<div class=\"promotional__content-wrapper\">\n\t\t\t<div class=\"promotional__content\">\n\t\t\t\t<h2 class=\"wp-block-heading\">Building a Foundation for AI Success<\/h2><p class=\"wp-block-paragraph\">Learn about the pillars of AI success<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button\"><a data-bi-an=\"Global CTA\" data-bi-ct=\"cta link\" data-bi-id=\"cta-block\" class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/info.microsoft.com\/ww-landing-building-a-foundation-for-ai-success.html?culture=en-us&amp;country=us\">Download the white paper<\/a><\/div><\/div>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<div class=\"promotional__media-wrapper\">\n\t\t\t\t<div class=\"promotional__media\">\n\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"900\" height=\"600\" src=\"https:\/\/www.microsoft.com\/en-us\/microsoft-cloud\/blog\/wp-content\/uploads\/2023\/10\/Employee-developing-business-strategy.jpg\" class=\"attachment-full size-full\" alt=\"a woman sitting at a table using a laptop computer\" loading=\"lazy\" srcset=\"https:\/\/www.microsoft.com\/en-us\/microsoft-cloud\/blog\/wp-content\/uploads\/2023\/10\/Employee-developing-business-strategy.jpg 900w, https:\/\/www.microsoft.com\/en-us\/microsoft-cloud\/blog\/wp-content\/uploads\/2023\/10\/Employee-developing-business-strategy-300x200.jpg 300w, https:\/\/www.microsoft.com\/en-us\/microsoft-cloud\/blog\/wp-content\/uploads\/2023\/10\/Employee-developing-business-strategy-555x370.jpg 555w, https:\/\/www.microsoft.com\/en-us\/microsoft-cloud\/blog\/wp-content\/uploads\/2023\/10\/Employee-developing-business-strategy-768x512.jpg 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/>\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t<\/div>\n<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"five-steps-to-building-a-successful-business-strategy-for-ai\">Five steps to building a successful business strategy for AI<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">AI has tremendous potential to transform multiple business functions, from marketing to product development to customer service to operations. But, like any consequential technology, it needs to support business objectives to drive meaningful business value.<\/p>\n\n\n\n<div class=\"alignright wp-block-bloginabox-theme-kicker\" data-bi-an=\"Kicker Left\">\n\t<div class=\"kicker\">\n\t\t<h2 class=\"kicker__title\">\n\t\t\tAI use cases\t\t<\/h2>\n\t\t<p class=\"kicker__content\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\thref=\"https:\/\/www.microsoft.com\/ai\/ai-customer-stories\"\n\t\t\t\t\tclass=\"kicker__link\"\n\t\t\t\t\ttarget=\"_blank\" rel=\"noopener noreferrer\"\t\t\t\t>\n\t\t\t\t\t\tRead customer stories\t\t\t\t\t\t\t\u2197<\/a>\n\t\t\t\t\t<\/p>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">In our conversations with customers, partners, and external and internal experts, we identified five steps that can help you develop a strategy for AI that will help you meet your goals.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"1-define-and-prioritize-business-needs\"><span class=\"text-gradient\">1. Define and prioritize business needs<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Successful AI projects begin with a clear, prioritized\u2014and most importantly, valued\u2014set of business needs. \u201cWe\u2019ve only just begun to understand the potential for AI business transformation across organizations,\u201d said <a href=\"https:\/\/www.microsoft.com\/en-us\/microsoft-cloud\/blog\/author\/alysa-taylor\/\">Alysa Taylor<\/a>, Corporate Vice President of Azure &amp; Industry Marketing at Microsoft. \u201cWhile customer use case adoption of AI varies by industry, we are seeing clear momentum around core business opportunities like employee experience, customer engagement, and internal business processes, as well as a focus on areas where AI can help bend the curve on innovation.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Starting with the business need is crucial because it helps pinpoint the use cases that are best equipped to drive meaningful impact and garner executive visibility, support, and, critically, resources. This can help you avoid \u201cperpetual proof-of-concept&#8221; and scale the initiatives with the greatest potential to become a force multiplier for your organization.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"2-identify-ai-use-cases-that-support-business-objectives\"><span class=\"text-gradient\">2. Identify AI use cases that support business objectives<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Once your business needs are clear, it\u2019s time to identify the use cases best suited to meeting your needs. Some of the <a href=\"https:\/\/info.microsoft.com\/ww-landing-ai-use-cases-for-business-leaders\" target=\"_blank\" rel=\"noreferrer noopener\">top use cases<\/a> we\u2019re seeing for generative AI include:<\/p>\n\n\n\n<figure class=\"wp-block-table table\"><table><thead><tr><th>Business need<\/th><th>Generative AI use cases<\/th><\/tr><\/thead><tbody><tr><td>Advance productivity<\/td><td>\u00b7&nbsp;Streamline employee tasks<br>\u00b7&nbsp;Speed up communication with AI-generated content<br>\u00b7&nbsp;Accelerate service delivery<\/td><\/tr><tr><td>Maximize efficiency<\/td><td>\u00b7&nbsp;Anticipate future needs with predictive analytics<br>\u00b7&nbsp;Accelerate operations with amplified automation<br>\u00b7&nbsp;Avoid downtime with predictive maintenance and AI-powered incident management<\/td><\/tr><tr><td>Improve business outcomes<\/td><td>\u00b7&nbsp;Generate new products and services<br>\u00b7&nbsp;Personalize customer experiences<br>\u00b7&nbsp;Enhance decision-making with intuitive business reporting<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"alignright wp-block-bloginabox-theme-kicker\" data-bi-an=\"Kicker Left\">\n\t<div class=\"kicker\">\n\t\t<h2 class=\"kicker__title\">\n\t\t\tMicrosoft AI\t\t<\/h2>\n\t\t<p class=\"kicker__content\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\thref=\"https:\/\/www.microsoft.com\/ai\/\"\n\t\t\t\t\tclass=\"kicker__link\"\n\t\t\t\t\ttarget=\"_blank\" rel=\"noopener noreferrer\"\t\t\t\t>\n\t\t\t\t\t\tExplore solutions\t\t\t\t\t\t\t\u2197<\/a>\n\t\t\t\t\t<\/p>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Of course, the best use cases are ones that deliver value in multiple ways. Conversational search, for example, is a great time-saver but also improves customer experience, while call summarization can help front-line employees and surface issues or opportunities that can lead to product or service improvements, or even new features and products.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"3-establish-a-set-of-criteria-you-ll-use-to-prioritize-use-cases\"><span class=\"text-gradient\">3. Establish a set of criteria you\u2019ll use to prioritize use cases<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The next step is to establish a set of criteria that you will use to evaluate use cases with the highest likelihood of success. It\u2019s critical to engage a diverse group of stakeholders and teams spanning multiple areas of expertise within your organization. These insights can help to identify use cases from different perspectives and inform the potential impact of each one, so you have the broadest possible view of success from stakeholders across the business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Following are five criteria to consider. Implementing these can be as simple as a discussion or as rigorous as a scorecard that you use at the beginning of each project.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\"><strong>Business impact<\/strong>. Is this project set up to deliver powerful, demonstrable results?<\/li>\n\n\n\n<li class=\"wp-block-list-item\"><strong>Feasibility<\/strong>. Does your organization have the data, expertise, and budget needed to support success?<\/li>\n\n\n\n<li class=\"wp-block-list-item\"><strong>Time to implement<\/strong>. Is this a quick win or a longer-term investment? Starting with quick wins can build organizational confidence, while investing in longer-term projects can yield compounding returns over time.<\/li>\n\n\n\n<li class=\"wp-block-list-item\"><strong>Ability to measure<\/strong>. Do you have the tools necessary to measure the impact of this initiative? Does it support established and valued key performance indicators (KPIs)?<\/li>\n\n\n\n<li class=\"wp-block-list-item\"><strong>Risk<\/strong>. What are the risks, if any, associated with this initiative? What is the risk if you don\u2019t pursue it?<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Whatever process you choose, establishing a set of prioritization criteria will help build organizational alignment and confidence over time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"4-determine-how-you-will-measure-the-value-of-ai-initiatives\"><span class=\"text-gradient\">4. Determine how you will measure the value of AI initiatives<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The ability to measure outcomes is one of the key criteria to consider as you prioritize AI use cases, as clear KPIs are critical for driving momentum and success for any technology project\u2014and AI is no exception. Try starting with the discrete impacts of specific AI initiatives. Here are just a few of the ways our customers have measured the value of their AI initiatives:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\"><strong>Productivity<\/strong>. Faster and more accurate transcriptions, document processing, market summaries, and content generation, reducing manual workloads and repetitive tasks.<\/li>\n\n\n\n<li class=\"wp-block-list-item\"><strong>Personalization<\/strong>. Personalizing the customer experience\u2014higher average order value (AOV) and customer lifetime value (CLV), increased customer satisfaction (CSAT) and net promoter scores (NPS), improved customer retention and conversion rates.<\/li>\n\n\n\n<li class=\"wp-block-list-item\"><strong>Efficiency<\/strong>. Forecasting demand more precisely, automating inventory management and predictions, pre-empting production line disruptions, identifying potential safety vulnerabilities, optimizing resource allocation, and synchronizing supply chains.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Ultimately, by quantifying the value of AI initiatives tied to business goals, you can build a culture of data-informed decision-making and ensure that AI becomes a strategic asset rather than a disconnected technology experiment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"5-build-a-portfolio-management-plan-to-help-guide-your-investments\"><span class=\"text-gradient\">5. Build a portfolio management plan to help guide your investments<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Finally, one of the biggest drivers of success is a portfolio management plan that helps to guide investments in AI.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In &#8220;Quick Answer: What Is the True Return on AI Investment?&#8221;, Gartner stated: \u201cEnterprises do not achieve maximum leverage from artificial intelligence investments, despite increased spending. Executive leaders must become keen and discerning creators of AI investment strategies in order to obtain optimum value from AI initiatives,\u201d and that \u201cthe best return yield from AI investment will come from an extensive portfolio of AI, guided by an expansive and evolving investment thesis that is aligned to strategic priorities and helps to allocate resources based on business impact. Organizations that follow a portfolio management plan to determine most AI use cases are 2.4 times more likely to reach \u2018mature\u2019 levels of AI implementation.\u201d<sup>1<\/sup><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Like a personal investment plan, an effective portfolio management plan sets up clear criteria for evaluating the success of individual projects, enabling you to identify which projects are delivering the expected value and which require adjustment or reallocation of resources. It also supports effective risk management. By carefully planning and prioritizing your AI use cases within a portfolio, you can diversify your AI initiatives, mitigate the risk associated with any single project&#8217;s failure or underperformance, and optimize resource allocation over time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"next-steps\">Next steps<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Stay tuned for the next post in our series: \u201c<a href=\"https:\/\/www.microsoft.com\/en-us\/microsoft-cloud\/blog\/2024\/01\/29\/building-a-foundation-for-ai-success-technology-and-data-strategy\/\">Building a foundation for AI success: Technology and data strategy<\/a>,\u201d in which we will explore the factors that contribute to a successful AI technology strategy and infrastructure. We will follow the next entry with dedicated posts focusing on AI strategy and experience, organization and culture, and AI governance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Download a copy of \u201c<a href=\"https:\/\/info.microsoft.com\/ww-landing-building-a-foundation-for-ai-success.html?culture=en-us&amp;country=us\">Building a Foundation for AI Success: A Leader\u2019s Guide<\/a>.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To read more from Alysa Taylor about how AI is transforming work for every individual, every business and every industry, read <a href=\"https:\/\/www.microsoft.com\/en-us\/microsoft-cloud\/blog\/2023\/10\/02\/shaping-the-future-with-the-cloud-built-for-the-era-of-ai\/\">Shaping the future with the cloud built for the era of AI<\/a>.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-a89b3969 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-arrow-left\"><a class=\"wp-block-button__link has-text-align-center wp-element-button\" href=\"https:\/\/www.microsoft.com\/en-us\/microsoft-cloud\/blog\/2024\/01\/29\/building-a-foundation-for-ai-success-technology-and-data-strategy\/\">Read the next post in the series<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:66px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity divider my-3\" \/>\n\n\n\n<p class=\"wp-block-paragraph\"><sup>1<\/sup>Gartner. <a href=\"https:\/\/www.gartner.com\/en\/documents\/4442599\" target=\"_blank\" rel=\"noreferrer noopener\">Quick Answer: What is the True Return on AI Investment?<\/a> By Ethan Cohen, Afraz Jaffri, Published April 26, 2023. (gartner.com). GARTNER is a registered trademark and service mark of Gartner, Inc. and\/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this post, we\u2019ll focus on business strategy\u2014the first of five categories that support the ability to deliver meaningful, sustainable, and responsible value creation with AI.<\/p>\n","protected":false},"author":12,"featured_media":629,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ms_queue_id":[],"ep_exclude_from_search":false,"_classifai_error":"","_classifai_text_to_speech_error":"","_alt_title":"","ms-ems-related-posts":[],"footnotes":""},"post_tag":[336,358],"content-type":[6],"industry":[],"job-function":[],"job-role":[],"property":[],"topic":[7,422],"coauthors":[246],"class_list":["post-655","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-ai-transformation","tag-building-a-foundation-for-ai-success","content-type-thought-leadership","topic-ai","topic-ai-resources","review-flag-1695745983-296","review-flag-1695745983-749","review-flag-1-1695745984-811","review-flag-2-1695745984-459","review-flag-3-1695745984-226","review-flag-4-1695745984-239","review-flag-5-1695745984-901","review-flag-and-o-1695745983-238","review-flag-artif-1695745988-168","review-flag-gartn-1695745987-996","review-flag-lever-1695745982-620","review-flag-new-1695745982-637"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Building a foundation for AI success: Business strategy | The Microsoft Cloud Blog<\/title>\n<meta name=\"description\" content=\"Review the five steps that are critical to building a successful business strategy for AI and that drive near-term success and adoption.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.microsoft.com\/en-us\/microsoft-cloud\/blog\/2023\/11\/01\/building-a-foundation-for-ai-success-business-strategy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Building a foundation for AI success: Business strategy | The Microsoft Cloud Blog\" \/>\n<meta property=\"og:description\" content=\"Review the five steps that are critical to building a successful business strategy for AI and that drive near-term success and adoption.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.microsoft.com\/en-us\/microsoft-cloud\/blog\/2023\/11\/01\/building-a-foundation-for-ai-success-business-strategy\/\" \/>\n<meta property=\"og:site_name\" content=\"The Microsoft Cloud Blog\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-01T15:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-24T19:19:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.microsoft.com\/en-us\/microsoft-cloud\/blog\/wp-content\/uploads\/2023\/10\/CLO23_meeting.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1260\" \/>\n\t<meta property=\"og:image:height\" content=\"840\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Susan Etlinger\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" 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