It’s becoming increasingly clear that the ability to harness artificial intelligence will become one of the most important competitive advantages for companies in all industries. AI implemented in a thoughtful and meticulous way is a secret weapon that will increase productivity, substantially reduce risk and be a trusted friend to every business professional. Think about how you can AI-ify everything!
In the 2023 Broadridge Digital Transformation study, more than 70% of C-suite executives said AI is significantly changing the way they work. That’s just the tip of the iceberg. In the same study, more than half of these senior executives said digital transformation is now their most important strategic initiative.
The stakes couldn’t be higher. AI is becoming more powerful and effective with each new iteration. It’s been less than a year since the release of ChatGPT and look how far we have already come—from nonexistent to omnipresent in every business conference or daily CNBC guest’s vernacular. Given that rapid progress, the choices companies make now about their technology development and investment strategies will help set the course for their businesses for years to come. Some companies will get those choices wrong. According to research firm Gartner
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, nearly half of AI projects never get past the pilot phase.
During the past three years, Broadridge has launched a range of solutions using machine learning, predictive analytics and generative AI. In addition to internal applications, we’ve rolled out AI-driven products currently being employed by clients in capital markets, wealth and asset management. Among the most successful has been BondGPT, an application powered by OpenAI’s GPT-4 that helps clients research corporate bonds in a fraction of the time it would take using conventional market data terminals. We have also looked at our operations to process incoming client requests via AI. Both of these are examples of AI-ifying everything.
Although I’m proud of that record, I have to admit that the process of developing those products was not always a smooth one. Throughout inevitable missteps and setbacks, we’ve learned some valuable lessons. If you’re going to add AI to everything, you better have a methodology. Based on our experience, we’ve developed some basic principles on how to AI-ify for leaders at each level of the organization. I hope these guidelines will help companies avoid pitfalls, maximize returns on technology investments and ensure that AI becomes a competitive advantage for their firms.
The CEO and Senior Management Team
Starting from the top, one of the most important things a CEO, COO and other C-suite executives can do to speed the integration of AI is to not only embrace it but also set a strategic direction. This direction should prioritize operational improvements and cost reductions that deliver relatively rapid returns. By following this bottom-up approach, companies will create a foundation for the future spread of AI throughout the organization. I think we all know that “prioritize” is code for funding. Make sure you put some tangible and incremental funding behind our AI-ify agenda.
The quick financial impact of AI will generate momentum for additional projects. Access to live AI solutions will make employees more productive in subsequent development projects. The adoption of AI can create a virtuous circle: Employees use AI to make new AI-powered tools that can be used in software engineering and other knowledge-based tasks. Across all these initiatives, senior management must set clear and quantifiable goals that can be used to measure progress. All of this starts with risk management. Like any profound tool, there are risks, and the sooner your enterprise risk and technology teams establish a controlled platform and “rules of the AI road,” the sooner you are off to a safe and productive start.
Technology Leadership
The task of applying AI internally will consume a huge amount of time and attention from the CIO, CTO and other technology leaders. To these executives, I offer the following advice: Don’t let sexy transformation projects distract you too much from the day to day. To the contrary, technology leadership should communicate in the strongest terms that the operation and resilience of the existing business is a top priority. This requires companies to address internal cultural issues, providing the right incentives for technology professionals who are asked to sit out on exciting AI transformations to keep the “old” business running. Meanwhile, technology leaders can democratize development and accelerate innovation by educating technology teams and business units on AI, and provide open-source tools that professionals across the organization can use to collaborate and experiment with AI solutions.
Leaders of Business Units and Functions
With AI and any type of technology transformation, the most important piece of advice for business leadership is simple: Do not accept a passive role. Heads of divisions and functions such as the head of operations, CMO or the heads of equity and risk must be proactive and engaged. Their role is essential: they represent the needs of the business, employees and clients. It is their input that ensures alignment between AI development and real business needs. Given the demands these executives face running their day-to-day businesses, they should deputize trusted representatives with the task of making sure technology initiatives will create actual value for the business unit and its customers.
External Partners
There is one final group that will play a critical role in any company’s AI integration: external partners. When picking an external partner, the CIO and technology leadership team should seek out providers who have demonstrated technological prowess and deep experience working with clients within the company’s industry. This experience will be invaluable throughout the AI integration process.
A partner who has worked with many other clients in the industry can use their understanding of internal workflows and friction points to help identify and execute operational improvement opportunities. An experienced partner will also be in a strong position to understand how AI can be applied to enhance the client experience, help drive better business decisions and expand the business into new customer segments and markets. Finally, that deep understanding of industry business practices will speed time to value, delivering returns on technology investments as rapidly as possible and setting the stage for additional and more ambitious AI projects.
I hope these simple themes can help you accelerate your own AI journey as we AI-ify fintech in the financial services industry.
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