Remember NFTs? It wasn’t that long ago that these blockchain-based non-fungible tokens were heralded as the future of … um, something, and businesses needed to start creating NFTs if they were going to keep up with … honestly, I’m struggling to remember why anyone thought these were a good idea.
And for what it’s worth, I really hope you don’t still have a $380,000 digital token for an image of a mutant ape sitting on your drive somewhere.
Regardless, it seems that the digital world is always looking for the next big thing to transform businesses, and for the last few years, AI has been all the rage. But unlike NFTs, which don’t provide much actual value to anyone beyond the owner, the rise of generative AI tools in particular has created a seismic shift in the ability to rethink creative departments, coders, chatbots, and a host of other actual business functions.
As countless millions were poured into the AI ecosystem, companies of all shapes and sizes rushed to “incorporate AI” into their businesses – but often without a clear understanding or explanation of what that actually meant.
But this mad rush into AI actually caused me to think of the larger question on how AI is affecting the concept of digital transformation – and what it means for business. Specifically, rather than just embracing whatever the shiny new technology is, should you be rethinking your entire business in such a way that would allow you to evaluate and embrace any new developments – technology or otherwise – with more clarity and purpose?
The Innovation Dilemma
As organizations expand and grow, they often fall into a familiar trap: the creative energy that brought them early success starts to fade as they become more risk-averse. The tendency to repeat what has worked before can take over, pushing out the experimentation and risk-taking that once defined their culture. Rather than leading the charge in fresh ideas, they start reacting to trends, hoping to catch the next big wave.
Enter the excitement around generative AI. In many businesses, there’s been pressure to be seen as doing something … anything … with these new tools, particularly in marketing. I’ve spoken with many business leaders who have received mandates from upper management to “do more” with generative AI, but with no clear direction as to what that should look like.
As such, the results are all over the map. There are some great examples of people who understand the power and constraints of AI tools, know how to create detailed prompts to analyze specific and finite sets of data, and have produced incredible efficiencies saving significant brainstorming time. At worst, we’ve seen some applications where consumer-facing AI tools have been left unchecked and spit out hallucinations, forcing those applications to be abruptly shut down before they have done significant damage to both company reputations and – in a few cases – the physical health of the clients they serve.
The Problem with Jumping on the Bandwagon
FOMO is a strong motivator – trust me, I raised teenagers. But when an organization jumps into something new just to keep up appearances, the results can be awkward at best and counterproductive at worst. That same risk applies here. Without a clear understanding of how and why a generative AI tool might be useful, or what problem it’s actually equipped to solve, efforts to use these tools often miss the mark. It’s easy to get caught up in the excitement of the new and overlook the need to take a step back and reassess things with a broader lens.
We Need to Transform “Transformation”
The key insight this AI evolution has surfaced is the need for companies to be able to navigate in an environment where things are evolving faster than ever before.
In the past, there was a sense that businesses could undergo a digital transformation, moving from one state to another in a specific and clearly-defined way. But moving forward, I fear that kind of thinking is going to fall short.
What’s needed now isn’t a one-time shift for the company, it’s a shift to a mindset and culture that’s prepared to continuously evolve. In this sense, digital transformation is no longer a destination but a journey, one that businesses must be prepared to walk every day.
Answer the Question by Starting with Questions
Given this finding, the most important question isn’t how to implement generative AI into your company today. It’s how to prepare your business to think differently about the future. The tools themselves will come and go, but the ability to make clear, thoughtful decisions about how to use them is what will truly set successful organizations apart. So when faced with a new technological opportunity or advancement, here are four questions I work through with my clients before we onboard anything:
- What does this tech actually do?
- What business problem would that solve for us?
- How much effort will be required to onboard, implement, and start using this technology?
- Does it ultimately create more free time for our employees to work on other things?
If you add some rigor to your decision-making by taking this approach, everyone in the organization understands there is a rhyme and reason to new technology initiatives, and you will start to create a culture that’s ready to embrace change – rather than just react to it. Then whatever the next big thing may be, you’ll be in a position to use it wisely.
Ready to shift from reacting to transforming? At Chameleon Collective, we embed experienced leaders who guide your team to embrace change as a culture. Reach out now to start a conversation and let’s build a future-ready business together.
