Overcoming AI Transformation Gaps – Part 1

Hello and welcome to the latest edition of Banking On AI Strategy. This edition will be the first in a two-part series focusing on AI Transformations. Today we’re going to look at the sort of challenges AI Transformations are presenting for leaders, and the nature of the Transformation Gaps they create. In the next edition we’ll complete this discussion, while looking at how leaders across the FS can close these gaps, and increase the speed, efficiency and ultimate success of their AI Transformation efforts.

 Overcoming AI Transformation Gaps – Part 1

Despite the resources and time being invested across industries, most enterprises are struggling to scale AI successfully. The issue is not technology—it is transformation. To fully appreciate the stumbling blocks one has to look at your organisational dimension and how the technologies are altering the organisational landscape from processes to people culture and beyond. A helpful way to think about this is the five cornerstones of AI readiness, and what needs to be in place for an AI transformation to even have a chance of success. So let’s start AI readiness and see what the core ingredients of a successful AI transformation are.

The Five Cornerstones of AI Readiness

AI transformation is not merely about implementing machine learning models or hiring data scientists. Organisations that succeed in AI transformation have five key cornerstones in place:

• A clearly defined AI strategy aligned with business goals

• A culture that embraces AI-driven change

• The capability to build, scale, and sustain AI initiatives

• Organisational knowledge and AI fluency across leadership and teams

• Effective AI governance, ensuring compliance, ethics, and risk management

Together these five areas comprise the cornerstones of AI readiness for any organisation across any industry. We are one of these cornerstones is absent, and AI transformation or any AI driven change work that attempts to move out scale will run into serious problems. Yet, most organisations have critical gaps in one or more of these areas. Additionally gaps exist in these five areas at different points in the maturity cycle and often out of sync with gaps in other areas. That makes solving these gaps challenging and ensuring each of the five cornerstones is not only in place at the beginning of an AI transformation, or continues to be a foundation for success throughout the course of a transformation. To understand this further let’s take a look at the first of these gaps.

The AI Strategy Gap

First up we have the AI Strategy Gap. While often overlooked, an insufficient or absent AI Strategy is often the first thing that derails an AI Transformation effort. To understand this better, let’s look at the nature of the problem caused by this gap.

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