In the rapidly evolving market, becoming an augmented organization is not just a strategic objective but a matter of survival. BearingPoint’s study, “AI-driven transformation: Becoming an augmented organization", emphasizes the critical need for businesses to leverage artificial intelligence (AI) and other emerging technologies to enhance capabilities, improve operational efficiency, and reinvent customer and employee experiences. Based on insights from 700 C-suite executives across Europe, the US, and Asia, the study highlights the urgency and strategic imperatives for transitioning into an augmented organization.
The Augmented Organization
Four pillars of an augmented organization
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1. Establishing effective AI governance
For C-suite executives, establishing AI governance is vital for becoming an augmented organization, yet nearly half of the organizations surveyed are still determining the best approach to governance and decision-making for AI. A cross-functional governance framework is essential to align AI initiatives with business objectives and ensure its ethical use. It also includes establishing clear policies and protocols to manage data privacy, security, and compliance, ensuring that AI applications are effective, responsible, and transparent.
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2. Optimizing AI investments
Strategically prioritizing AI investments is crucial to achieving scalable impacts and the best return on investment. Identifying high-impact areas where AI can drive significant improvements and allocating resources is essential. Organizations should adopt a data-driven approach to measure the effectiveness of AI initiatives, continuously assessing and optimizing their AI portfolio to maximize efficiency and innovation, ensuring that AI investments are aligned with strategic goals and deliver tangible business benefits.
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3. Empowering the workforce
From the base to the C-suite, fostering a culture of continuous learning and adaptation is vital to embrace AI-driven change. It includes providing ongoing training and development programs to enhance AI literacy and skills across the organization. Encouraging collaboration between employees and AI systems can lead to more innovative solutions and a more agile workforce that is better prepared for the future of work. Despite prioritizing training, only a third of organizations have a strategy for adopting AI and managing the changes it brings, highlighting the need for a more comprehensive approach to workforce empowerment.
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4. Building trust in AI
Addressing technological, security, legal, and ethical challenges is essential to ensure AI integration and acceptance within the organization. According to the survey, data and people are central issues and priorities for C-suite executives in establishing trust in AI. Building trust in AI requires transparent communication about how AI systems make decisions and how they impact employees and customers. Establishing robust cybersecurity measures, adhering to legal standards, and fostering an ethical AI culture can mitigate risks and enhance the credibility and reliability of AI solutions.
AI is a present-day necessity, and the pace of AI innovation and its adoption by competitors and consumers is accelerating. Our study indicates that organizations that fail to integrate AI effectively are at significant risk of falling behind competitors already leveraging AI to enhance productivity, drive innovation, and deliver superior market experiences. Embracing AI is not just about keeping up; it’s about gaining a competitive edge and redefining value propositions. Organizations that understand and act on this now will be the leaders of tomorrow’s market.
Frédéric Gigant, Global Leader Customer & Growth at BearingPoint
Becoming an augmented organization in 30 seconds
- Strategic imperative: Transitioning to an augmented organization is essential for survival and success.
- AI governance: Establishing robust governance is crucial for aligning AI initiatives with business strategy.
- Investment optimization: Prioritizing AI investments strategically to achieve transformative and scalable impact.
- Workforce empowerment: Adopt an effective and comprehensive approach for the frontline staff to the C-suite to drive AI-led transformation .
- Building trust: AI integration must address technological, ethical, security and legal challenges.
