In the past year, generative AI has amazed executives with its capabilities, but now they are looking for real-world results. They want to know how to determine the highest value opportunities and assess the tradeoffs between cost, benefits, and risks. CEOs want to prepare their organizations for the changes that generative AI will bring. Three value plays are suggested: Deploy, Reshape, and Invent. The Deploy play focuses on using generative AI for productivity gains. The Reshape play involves reshaping processes and functions using generative AI. The Invent play explores using generative AI to reinvent customer experiences and create new services and business models. To succeed, companies must balance initiatives across all three plays and ensure responsible AI deployment.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Generative AI adoption | From hype to real-world results | Widely deployed GenAI tools for productivity and efficiency gains | CEOs and executives seeking business impact |
| Deployment of GenAI | From small-scale pilots to organization-wide commitment | GenAI embedded in every area of the organization, following principles of responsible AI | Focus on productivity outcomes and implications for operating models |
| Reshaping processes and functions | From traditional ways of working to efficiency and effectiveness gains | 30% to 50% efficiency and effectiveness gains by reshaping functions | Potential for significant transformation in customer service, marketing, and software development |
| Combining generative AI with predictive AI and proprietary data | From standalone AI tools to integrated AI solutions | Integration of GenAI with machine learning systems and predictive AI tools for better outcomes | Strategic value of integrated AI for personalization and customer engagement |
| Inventing new business models with GenAI | From core product offerings to innovative revenue streams | Development of GenAI-powered conversational assistants for personalized customer interactions | Potential for significant enterprise impact and market traction |
| Balancing initiatives across all three value plays | From focusing on one aspect of GenAI to a holistic approach | Maximizing the potential of GenAI by deploying, reshaping, and inventing simultaneously | Leveraging technology backbone and responsible AI policies for each play |