Maximize AI on a Budget: A Practical Guide for Decision Makers

(This article I wrote was originally published on Reworked)

Despite challenging economic conditions, AI still remains a priority.

In today's challenging economic environment, many companies are tightening their budgets. However, investment in technology and artificial intelligence remains strong. In fact, according to a new study, over 80% of leaders expected their tech budgets to increase in 2024 as more businesses look to save with AI. This suggests that even with budget constraints, mass AI adoption is still on the rise.

But how can business decision makers justify the cost of AI implementation in the current economic climate? Even though AI has the potential to boost profitability and productivity by large margins, the upfront cost might feel like a significant investment in the current climate. There are practical tips and real-life examples on how to reach digital workplace maturity with maximum cost efficiency in the age of AI.

What Is Digital Workplace Maturity in the Age of AI?

AI is now a key piece of the digital workplace maturity puzzle for organizations worldwide. While AI has an initial cost, smart adoption and implementation strategies can minimize those costs while powering even greater savings in the long-term. That’s why more organizations are adopting even in the face of tightening budgets. 

It’s easy to understand why AI has become a must-have for leading organizations, rather than a passing curiosity. Gartner reports, for example, that some companies reported a reduction of up to 70% in call, chat and email inquiries after implementing automated customer service solutions like chatbots. By continually training AI models on enterprise data, companies are now able to fine-tune these tools’ responses and improve their effectiveness. 

While AI isn’t the be-all end-all of digital workplace maturity, it is an increasingly important component. If you aren't considering adopting, you might be falling behind.

Maximize Value by Leveraging Existing Talent

A new report from Deloitte finds that 23% of AI-adopting companies have a “major or extreme” shortage of professionals who can make and effectively use generative AI. Making matters worse, another study found that less than half of organizations currently have AI training available. While it might be tempting to cut costs by avoiding spending on AI training and enablement, it’s important to remember these investments are key parts of your company’s overall AI commitment. Even though cutting back on training might help reduce upfront costs, it’s crucial to avoid going too far with those cuts, since doing so will ultimately harm your team’s ability to use AI effectively. This, in turn, puts your overall AI investment at risk. Once companies have AI-enabled workforces, they can expect to see results. For example, a manufacturing company that implemented AI-powered predictive maintenance reported a 25% reduction in downtime and a 20% increase in productivity. By training their existing maintenance staff to use the new technology, the company was able to maximize the value of their investment and avoid the cost of hiring new employees.

Connect AI to the Bottom Line for Continued Investment

Despite economic uncertainty, AI investment remains strong. To protect those investments and ensure continued support, leaders should try to quantify the output of their AI technology, and, whenever possible, tie that output back to the company’s bottom line.

While it can sometimes be challenging to tie AI to revenue, doing so should protect your AI commitments and make your company more successful. For example, a retail company that implemented AI-powered inventory management reported a 15% reduction in stockouts and a 10% increase in sales. By quantifying the impact of their AI investment and tying it back to the company's bottom line, the company was able to secure continued support for their AI initiatives. It’s useful to remind ourselves that AI is new for everyone. As we all learn how to build and use it effectively, we should also explore new ways to document its effects. This helps build internal support for further AI deployment, which in turn can help your company achieve even greater success with AI.

Monitor Trends, Adjust and Adapt

The rapid spread of AI serves as a powerful reminder of how quickly technological innovations can appear and take hold. The speed of this progression shows leaders that it’s critically important to pay attention to emerging tech trends, particularly with AI. Ultimately, the promise of AI belongs to companies that live on the leading edge. That’s why it’s imperative for forward-thinking leaders to not only monitor emerging trends and innovations, but to actually implement new technology — even if on a budget. By tying investments to the bottom line, leveraging existing talent and keeping up with the latest trends and developments, you can deploy AI in a way that saves your company money in the long-term.