With the advance of artificial intelligence (AI), many people are starting to believe that the current ways of doing business might become obsolete within five years.
Corporations are paying attention as to how AI would impact future business models.
Early birds that have adopted AI tools have been able to improve their productivity and operation efficiency by 5 to 10 percent, surveys suggest.
The AI tools include chat robots, risk forecasting models, algorithms, automated manufacturing, etc.
But most companies still lack understanding of AI. Technological disruption is nothing new, but the speed of change triggered by AI could be quite unusual.
It’s similar to the invention of power and steam engine, which have powered the industrial revolution in the 18th century.
I would advise companies that are trying to harness AI for the first time ask themselves one question: what sort of problems am I trying to solve?
And then take a look at how AI could help tackle the issue.
They can start with small steps and gain deeper understanding from hands-on experiences. This can help provide a clearer picture.
The key is to identify what you want to tackle rather than what technologies can do.
In order to turn AI into key driving force for a business, top management of the company needs to take a leading role in pushing specific projects.
Companies need to learn from mistakes and expand their pilot programs based on successful experiences.
Taking immediate action is crucial, otherwise you will fall behind.
This article appeared in the Hong Kong Economic Journal on June 6
Translation by Julie Zhu
[Chinese version 中文版]
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