How to Create Business Value Using AI
When planning an AI project, a good rule of thumb to use is the 70% rule. The 70% rule says a successful AI project will consist of: 10% AI algorithms, 20% technology, and 70% business process transformation.
The 70% rule of thumb is a good reminder that both the business and technical sides of your company need to work together to successfully transform your processes.
Let’s look at each driver and then see how that applies to a specific client example.
AI > Technology > Transformation
Driver 1. AI
AI algorithms are catching everybody’s eye these days. And for good reason — tasks that once required human intelligence can be executed by a machine using AI algorithms. These algorithms can dramatically alter and improve how work gets done, and that opens up new possibilities. But AI’s sizzle is only 10% of a successful project.
Driver 2. Technology
The technology stack makes up another 20% of what is required to make the AI algorithms work. AI is always integrated into the pipeline of data processing, and into a technology stack needed for the work to get done.
Driving powerful results requires MLOps, which is the integration of AI into the enterprise IT architecture, power functioning in that solution ecosystem, and operations. For algorithms to create value, they require a technology bridge into the enterprise.
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Driver 3. Business Process Transformation
AI and technology can power big change, but not in a vacuum. Gartner describes AI as a business problem, not a technology problem, for this reason.
Getting an AI-based solution into production and then transforming the process is 70% of the work. That’s because it requires changing familiar processes and systems, and re-evaluating both how work gets done and people’s roles in all of the steps along the way.
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To create business impact from AI requires AI algorithms plus technology plus process transformation. After years of helping our clients create business value using AI, we know the 70% rule of thumb to be a valid principle with broad application.
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The 70% Rule of Thumb for AI Projects was originally published in Becoming Human: Artificial Intelligence Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.
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