Learn about AI success from execs who are getting it right
A characteristic of companies achieving the most value from investments in artificial intelligence are executives able to articulate the role of AI in their business.
Most organizations, on the other hand, pursue AI within silos. What they risk is failing and giving up and never recovering, which has severe consequences at a time when no business can afford to miss out on opportunities to improve.
Public statements by executives getting AI right highlights best practices that every company should consider.
Starbucks’ CEO Kevin Johnson, Oct. 2019:
AI investments are an important element of Starbucks’ digital strategy and work to grow digital customer relationships. Over the past year Starbucks has been “dialing up” its in-house capabilities and investments in AI through its “Deep Brew” initiative. Noted Mr. Johnson, “Deep Brew will increasingly power our personalization engine, optimize store labor allocations, and drive inventory management in our stores.”
Then P&G CIO and current Mondelez CIO Javier Polit, Nov. 2019:
“We focus on AI, starting with our data and making certain that data engineering and governance exist. We then look at ML on top of that to solve business problems. Today every company needs to be a data, analytics, and algorithmic company. If you don’t look at things from this perspective, you’re going to miss opportunities to help the business.”
Nestlé CIO Filippo Catalano, Nov. 2019:
“AI is really about experimentation and continuously improving what you do, versus the reality you need to master,” he explains. “I know it’s overused, but this idea of making it very ‘okay’ to encounter failure along the way is very important in AI, not just in general innovation.”
L’Oreal Canada Chief Digital Officer Robert Beredo, Sept. 2020:
The use of AI has been a “game changer,” helping the company differentiate service experiences with its brands, personalize consumer interactions, and remove friction from the shopping experience.
Walmart Chief Data Officer Bill Groves, Oct. 2019:
With a success rate of only 75 percent, Walmart is eager to lean into AI and machine-learning projects. One of Walmart’s standard evaluation procedures for high-tech initiatives includes answering three questions: “Why are you doing it?”, “Can you explain it?”, and “Can you implement it?”
“If the answer is ‘no’ to any of these three, we’ll typically put a stop to the project immediately, so that way we aren’t spending money that we shouldn’t spend,” Mr. Groves said.
- Lessons in AI success from executives who get it right – Medium.com
- Building the AI-Powered Organization – Harvard Business Review
- How Starbucks Is Using Artificial Intelligence and IoT – RIS News
- P&G CIO: IT Is All About Serving & Delighting Consumers – Adobe
- Nestlé CIO, Filippo Catalano, offers top-level AI strategy advice for business leaders – Venture Beat
- AI a ‘Game Changer’ for L’Oréal as it Explores Live Video Shopping – CGT
- Walmart Goes All in on AI – Deli Market News
DISCUSSION QUESTIONS: How would you prioritize developing an artificial intelligence strategy amid competing priorities in the current retailing environment? How do you think retail executives should set the tone for AI in their businesses?