Exploring futuristic trends for corporate leaders and executives so they can stay ahead in the era of AI & Robotics.
Welcome to the deep dive with the Future of Leadership Summit. We're focusing on AI and its impact on leadership. We're gonna try and summarize some key points for you in about 10 minutes. And we're basing this on the Avanade 2025 AI value report. This report surveyed over 4,100 decision makers globally.
Speaker 1:So it gives us a pretty good snapshot of how companies view AI, especially those in the mid market range, you know, with revenues between 500,000,000 and $5,000,000,000.
Speaker 2:Right. What's striking is the sheer optimism about AI's return on investment. These companies aren't just dipping their toes in the water. They're diving headfirst, expecting to quadruple their AI investment within a year.
Speaker 1:Four times the return in just 12 months. That's a bold bet. Makes Makes you wonder what's driving that level of confidence.
Speaker 2:It seems to be a mix of anticipated productivity gains and cost savings. The report shows a widespread belief that AI can streamline operations and cut expenses, leading to quick wins.
Speaker 1:But here's the thing that really jumped out of me. 84% of the those surveyed think AI's primary role is to replace employees, yet very few are measuring their ROI based on actual headcount reductions. There's a disconnect there, isn't there?
Speaker 2:It is a bit of a paradox. It suggests that while many see AI as a way to automate jobs out of existence, they're not necessarily focused on that when assessing its value. Instead, they're looking at broader metrics, like improved efficiency and output.
Speaker 1:So maybe companies are missing the forest for the trees here, perhaps focusing too much on short term cost cutting and not enough on how AI can fundamentally change their business for the better in the long run.
Speaker 2:That's the $1,000,000 question. This short term focus could be preventing them from fully leveraging AI for more strategic goals, like developing entirely new products or expanding into new markets. There's a risk that they're limiting AI's potential.
Speaker 1:It's almost like they're stuck in a traditional mindset. Yep. Thinking about AI is just another tool to cut costs instead of a transformative force that can reshape their entire business model.
Speaker 2:That's a great point. And speaking of changing mindsets, the report highlights a fascinating shift in how we perceive AI. It's moving beyond being a simple tool. It's becoming more of a collaborative partner, almost like a coworker.
Speaker 1:Okay. Now that's really intriguing. So we're not just talking about AI automating tasks, but actually working alongside humans in a more integrated way.
Speaker 2:Exactly. We're seeing the emergence of AI agents, which are basically software entities capable of making decisions and acting autonomously within a specific domain. And get this, companies are starting to measure their performance just like they would with human employees.
Speaker 1:Wait. Hold on. AI agents are getting performance reviews. Now that's something I have to hear more about.
Speaker 2:It is pretty wild. Right? They're using metrics like improved processes, cost savings, accuracy of decisions, and even revenue generation to evaluate these AI agents. It shows how deeply embedded AI is becoming in the way work gets done.
Speaker 1:That raises a big question for leaders. How do you manage a team that includes both humans, a and d AI agents? It's a whole new ballgame.
Speaker 2:Absolutely. And the report tries to address that by laying out 5 key questions every leader should be asking themselves in this new era of AI powered workplaces.
Speaker 1:Okay. Lay those questions on us. What are the big things leaders need to be thinking about?
Speaker 2:The first question is all about getting your workforce on board. How might your workforce embrace AI and confidently increase value for stakeholders?
Speaker 1:That makes sense. You can't just drop AI into the mix and expect everyone to adapt instantly. It's about building a culture of AI literacy and giving people the training and support they need to thrive in this new environment.
Speaker 2:Exactly. The second question focuses on the technology itself. What modernizations are needed to ensure your tech systems are flexible and secure enough to make the most of AI advancements?
Speaker 1:It's a reminder that AI isn't just about the algorithms. It's about having the right infrastructure in place to support it. You need systems that are agile and secure enough to handle the demands of AI. Precisely.
Speaker 2:And the third question dives into the ethical side of things. Yeah. How might you deploy AI to align with both human and organizational values?
Speaker 1:This is where responsible AI comes into play. Making sure that AI is developed and used in a way that benefits society and aligns with our ethical principles.
Speaker 2:Right. It's not just about the technology itself, but the values and intentions driving its implementation. And then there's the, the human side of the equation, which leads us to the 4th question. How are you addressing the social and emotional impacts of AI?
Speaker 1:That's a crucial one. It acknowledges that this shift to AI isn't just about technology. It's about people Yeah. And their feelings Yeah. Anxieties, even their sense of identity in the workplace.
Speaker 1:Wow. Leaders can't ignore that.
Speaker 2:Exactly. Ignoring the human factor could lead to resistance, fear, and ultimately failure to adopt AI effectively.
Speaker 1:It's about recognizing that change, especially something is potentially disruptive as AI needs to be managed carefully and with empathy.
Speaker 2:Couldn't agree more. And finally, question number 5 brings us to the question of governance. Where have you set clear AI risk thresholds and governance structures for
Speaker 1:each business function? So this is about setting boundaries and guidelines right. Yeah. Making sure there's a framework in place for how AI is developed, deployed, and used responsibly within the organization.
Speaker 2:Precisely. It's about establishing clear accountability, ensuring compliance with regulations, and managing the potential risks associated with AI from data privacy to bias.
Speaker 1:It sounds like these five questions provide a really solid road map for leaders who are navigating this new world of AI. They highlight the need to think holistically, considering not just the technology, but the human and ethical dimensions as well.
Speaker 2:They do. And one thing that really struck me when reading this report is the topic of trust. While companies are embracing AI, it seems like there's a growing level of distrust in its output.
Speaker 1:You're right. It's almost paradoxical. Organizations are relying on AI for decision making, yet the report found that only a third of the leaders surveyed fully trust the results. That's actually down from 48% just a year ago.
Speaker 2:It's a surprising finding for sure. You'd think with all the investment and excitement around AI, that trust level would be higher.
Speaker 1:So what's causing this disconnect? Why are leaders hesitant to fully embrace the insights that AI is providing?
Speaker 2:Well, one major concern is data quality. There's a worry that the data feeding these AI systems might be flawed, inaccurate, or even biased, leading to unreliable outputs.
Speaker 1:The old garbage in garbage out problem
Speaker 2:Yep.
Speaker 1:Applied to AI.
Speaker 2:Exactly. If the data itself is suspect, then any decisions or recommendations based on that data are also suspect.
Speaker 1:And that brings up another concern, Crop, the potential for unintended consequences. If AI systems are making decisions based on biased or incomplete data, those decisions could have negative repercussions for individuals or even entire groups.
Speaker 2:Absolutely. That's a significant concern. It's why transparency in AI is so important. People need to be able to understand how AI systems work, how decisions are being made to build trust in their output. It's like the old saying, trust but are being made to build
Speaker 1:trust in their output. It's like the old saying, trust but verify. We need to be able to verify the decisions the AI is making, especially when those decisions have a real impact on people's lives.
Speaker 2:That's a great way to put it. And speaking of verifying and ensuring responsible AI, the report also touches on the fascinating concept of teaching AI to forget.
Speaker 1:Teaching AI to forget. Now that sounds like something straight out of science fiction. How does that even work? It might sound futuristic, but it's becoming increasingly relevant
Speaker 2:as AI futuristic, but it's becoming increasingly relevant. As AI systems learn and evolve, they accumulate vast amounts of data. Some of that information may become outdated, irrelevant, or even potentially harmful over time. Time.
Speaker 1:So it's like decluttering the AI's mind, getting rid of information that could lead to biased or inaccurate decisions.
Speaker 2:Precisely. And there are a couple ways to achieve this forgetting. 1 is through data deletion or anonymization. This involves removing or masking sensitive or outdated data from the AI systems training dataset.
Speaker 1:It's like hitting the delete button on specific pieces of information Yeah. That are no longer useful or could potentially cause problems.
Speaker 2:Exactly. Another approach is through model fine tuning. This involves retraining the AI model on a modified dataset that excludes certain information or biases. It's like giving the AI a refresher course with updated and more accurate information.
Speaker 1:So you're essentially guiding the AI's learning process, making sure it focuses on the most relevant and trustworthy data.
Speaker 2:Right. And this ability to teach AI to forget becomes even more crucial. When you consider the rapidly changing nature of data privacy regulations, organizations need a way to ensure their AI systems comply with these regulations and don't retain information that could put them at risk.
Speaker 1:It's not just about making AI smarter. It's about making it smarter in a way that's responsible, ethical, and aligned with our evolving understanding of data privacy.
Speaker 2:Couldn't agree more. It's a dynamic process that requires ongoing monitoring
Speaker 1:Adaptation.
Speaker 2:And refinement.
Speaker 1:It's clear from this report that AI has incredible potential to transform the workplace Mhmm. And create value for organizations. But like with any powerful technology, it's not without its challenges and risks.
Speaker 2:Absolutely. And that's why these 5 questions for leaders are so crucial. They provide a framework for approaching AI implementation strategically ethically and with a deep understanding of its impact on both the workforce and the organization as a whole.
Speaker 1:It sounds like the future of leadership is inextricably linked to the future of AI. Those who embrace AI strategically and responsibly will be the ones who thrive in this new era.
Speaker 2:I couldn't agree more. This is an incredibly exciting and transformative time, and the leaders who grasp the full potential of AI while navigating its complexities will be the ones who shape the future.
Speaker 1:We've talked a lot about the challenges and potential pitfalls of AI, but it's important to remember that this technology also offers some incredible opportunities. The report highlights some pretty exciting ways that AI is already transforming businesses and creating real value.
Speaker 2:Absolutely. One area where AI is having a major impact is in automating those tedious, repetitive tasks that nobody really enjoys doing. This frees up human employees to focus on more strategic creative and, ultimately, more fulfilling work.
Speaker 1:So it's not about replacing humans entirely, but rather augmenting their capabilities. Letting AI handle the grunt work so humans can focus on the tasks that require uniquely human skills, like critical thinking and problem solving.
Speaker 2:Precisely. It's about finding that sweet spot where AI and humans complement each other, each contributing their strengths to achieve better outcomes.
Speaker 1:What are some other areas where AI is proving to be valuable for businesses?
Speaker 2:Well, AI is becoming a real powerhouse when it comes to decision making. By analyzing massive amounts of data, AI algorithms can identify patterns and insights that humans might miss. This data driven approach can lead to more informed and effective decisions across various departments from marketing and sales to finance and operations.
Speaker 1:So AI is like a super powered analyst helping us make sense of all the data that's out there and turning it into actionable insights.
Speaker 2:Exactly. And it's not just about crunching numbers. AI is also being used to personalize customer experiences. By analyzing customer data, AI systems can tailor product recommendations, marketing messages, even customer service interactions to individual preferences. This level of personalization can lead to increased customer satisfaction, loyalty, and ultimately, revenue.
Speaker 1:It's about using AI to create those wow moments for customers making them feel understood and valued.
Speaker 2:Right. And beyond these specific examples, AI is driving innovation across industries, From health care and education to manufacturing and transportation, AI is being used to develop new products, improve efficiency, and solve some of the world's most complex challenges.
Speaker 1:It's clear that AI has the potential to revolutionize the way we work and live. But as with any powerful technology, it's crucial to approach AI implementation responsibly and ethically.
Speaker 2:Couldn't agree more. The Avanade report emphasizes the importance of ethical AI development. Leaders need to ensure that AI is used a way that benefits society as a whole, not just a select few.
Speaker 1:It's about harnessing the power of AI for good, mitigating the potential risks, and ensuring that everyone has the opportunity to participate in and benefit from the AI revolution.
Speaker 2:That's a great way to put it. The future of AI is ultimately in our hands. It's up to us to shape it in a way that aligns with our values and aspirations.
Speaker 1:Well, this deep dive has certainly given me a lot to think about. I'm excited about the possibilities of AI, but also mindful of the challenges and responsibilities that come with it.
Speaker 2:It's an exciting and transformative time, and I'm glad we could explore it together. This has been a really thought provoking discussion.
Speaker 1:Thanks for joining me on this deep dive into the Avanade 20 25 AI value report. If this topic is of interest to you, you may want to explore our upcoming future of leadership summit. Visitfutureofleadershipsummit.com to learn more.