Prepare for mandated use of AI!! You better start NOW!

I have been writing about the integration of artificial intelligence into business many times. Why? Because AI changes the performance of companies, creates new opportunities, and puts organizations ahead of the competition. In other words, we may have no choice to integrate AI into our operations; there are signs that AI may become compulsory for organizations. Why? I am outlining some of the reasons below:

The Predictive Economy will transform executive decision-making and central rules, altering demand and prompting service personnel. Predictive data analytics will manage workforce deployment based on economic, political, and seasonal forecasts, enhancing consumer engagement with personalized, location-specific offers. These examples highlight the megatrend of this decade: Predictive Economy.

What has been partially implemented in digital industries will gain overarching importance: tools of artificial intelligence (AI) and machine learning calculate events and outcomes using vast data sets, guiding managerial decisions. The benefits are manifold: proactive, target-specific and offer to boost revenue and margins.

Businesses integrating these models should adhere to four fundamental rules:

I.Boards must align corporate strategy and business models with Predictive Economy opportunities, frequently revising them. Key questions include adjusting monetization strategies based on customer payment preferences, potentially favoring data licensing and AI-generated service parameters over traditional product sales. Boards must also strategize network partnerships crucial for customer retention.

II.Predictive Economy's notable feature is extensive regulation. Data privacy and new AI laws add to product and industry regulations. It's essential to integrate these rules early in product development—perhaps making them integral to products, termed "Compliance by Design." Early compliance integration in research, development, and product design mitigates risks associated with data handling regulations, enhancing market entry and reducing costs.

III.Predictive Economy is part of a new data economy shaped by  cross-industry collaborations under platform agreements and minority venture capital investments. Bilateral joint ventures are less common. Business leaders must adopt a network-centric approach, understanding their reliance on partners. Contracts should facilitate connectivity with partner offerings, enforcing uniform technical standards and delineating data usage rights to prevent misuse and cyberattacks, especially when competitors are involved.

IV.Executives shield decisions from personal liability by basing them  on "adequate information." Predictive data analysis aids in meeting this requirement for strategy adjustments and individual investments. AI tools can become part of new product offerings within this framework. In production, data gathered by sensors is compared to standard norms using artificial intelligence to identify faulty products early. Systems report maintenance or replacement needs promptly through data matching.

Although using artificial intelligence remains optional, it is likely to become mandatory. A first step in this direction is the EU’s General Data Protection Regulation which includes explicit rules governing automated decision-making. While this applies to companies operating in the EU, we have many companies in the Philippines which are dealing with European clients and will have to take these regulations seriously. Additionally, other countries may well follow the EU example.

In conclusion, allow me to repeat that it makes good corporate sense to let AI policies allow you to innovate while ensuring the ethical use of AI, and demonstrate integrity-based leadership.

I look forward to your comments; email me at [email protected]