What's Happening?
Legacy companies are increasingly integrating AI into their operations to drive strategic value, moving from a 'bolt-on' approach to a 'built-in' model. This shift is driven by the need to align AI initiatives with overarching business objectives, such as accelerating product development, improving customer experience, and enhancing operational efficiency. AI-native companies like Moderna and ServiceNow have successfully leveraged AI by embedding it into their core strategies, resulting in significant business growth. In contrast, many legacy companies are still in the experimental phase, with only a small percentage operationalizing AI across their businesses. The transition to AI-enabled operations involves prioritizing functions for AI integration,
deconstructing work into skills and tasks, and aligning systems to support AI-driven transformation.
Why It's Important?
The integration of AI into legacy companies is crucial for maintaining competitiveness in a rapidly evolving market. By embedding AI into their core operations, these companies can unlock new efficiencies, enhance customer experiences, and drive innovation. This transition is particularly important as AI-native companies continue to gain market share by leveraging their digital-first strategies. For legacy companies, failing to adapt could result in losing market share to more agile competitors. The shift to AI-enabled operations also highlights the importance of aligning AI initiatives with business objectives to ensure meaningful value creation. As AI becomes a central component of business strategy, companies that successfully integrate AI will be better positioned to thrive in the digital economy.
What's Next?
Legacy companies are expected to continue their transition towards AI-enabled operations by focusing on strategic AI integration. This involves identifying high-impact areas for AI deployment, deconstructing roles into tasks to optimize AI use, and aligning organizational systems to support AI-driven transformation. Companies will need to address readiness gaps in skills, data, and governance to scale AI initiatives effectively. As AI becomes more integrated into business operations, companies will need to continuously evaluate and refine their approaches to ensure sustainable value creation. The successful integration of AI will require a commitment to continuous learning and adaptation, as well as a focus on aligning AI initiatives with strategic business goals.
