03/02/2024

Key Influences on the Digital Core in a Digitally Disruptive World – Part 1

We’ve talked previously about the Digital Core, its interconnectedness and criticality to business over the next decade.  This blog posts talks more about the first four factors at play around the Digital Core in the era of generative AI.

Legal & Regulation

AI and specifically Generative AI is creating ramifications in the legal and regulatory space from copyright challenges (from the content used within AI training regimes) to accountabilities for answers to questions, citation of “facts” or even recommendations provided, from the results generated from algorithms. These developments are challenging the current bounds of legal and regulatory scope and obligations.  We predict we will see a small number of high-profile litigations to test and potentially create case law around one or a number of these emerging issues.  Law Firms and corporate general counsels are likely to be kept busy with the rapidly emerging legal landscape being created by AI; from copyright infringements to implications of “advice” or “recommendations” being taken from AI outputs; from misinformation, discrimination, and privacy onto planned and potential regulatory changes.  Some of the rule books are being fundamentally challenged if not ripped up.  Legal counsels are about to be getting even busier.

Expectations (Stakeholder)

Even when we get through the hype phase of (generative) AI, there will still be significant expectations from customers, shareholders and business leaders expecting to see some form of revolution or killer-app from the introduction of AI to their business.  For some people, AI has taken on some magical qualities and expectations rapidly evolving accordingly.  Setting and managing these expectations early within the business will be key to prevent disappointment, burnout of the tech teams and/or expensive and potentially reputationally damaging mistakes being made.

Customers

An important community of stakeholders for the expectation management process will be customers.  They will expect AI to be increasingly present in products and services and will want to know where and how it is being used.  Regulators will be increasingly interested in AI’s deployment and influence of products and services affecting consumers and enterprises alike. If a business is managing customer data, if, how and when this data might be being used within an algorithm and creating value (or unknown risk).  As such, customers will need to be closely coached along on the evolutionary journey of any businesses Digital Core utilising AI.

Skills

The pool of people with deep functional AI skills is relatively small today; many professionals will be rushing to attend a course and put it on their CV but genuine deep understanding of AI, machine learning, neural networks and associated technologies require strong maths, good understanding of coding and data handling, all of which is in relatively short supply.  Likewise, leaders, especially those not closely associated with technology in their career will increasingly be exposed for their level of understanding in the Digital Core and how to manage people with the skills within this core.  Even in the pre-AI epoque, these skills especially through and post pandemic, have been hard to find and trading at a premium; the addition of AI to this space only amplifies the challenge. If you would like to discuss more about the content of this blog and the issues being introduced, how to become hyperagile, or how to evolve a Digital Core an its implications for your executive team and business please do get in in touch.  If. you simply want to contribute your thoughts and experiences to a wider piece of strategic transformational research and development, please get in touch here……