Walking the AI Tightrope: Innovation vs. BAU in the Age of Smart Transformation
Adapted from HBR

Walking the AI Tightrope: Innovation vs. BAU in the Age of Smart Transformation

A Familiar Tension in a New Era

When I meet with executive leaders across industries, I often hear a common frustration:

“We’re pouring millions into AI, but our operations are still bogged down by spreadsheets, legacy systems, and the same old reports.”

This isn’t just a technical bottleneck. It’s a strategic tension: the balancing act between driving innovation through artificial intelligence while keeping the business-as-usual (BAU) engine humming.

Every C-suite executive today is navigating this dilemma. Boards demand innovation. Markets reward disruption. But the frontline still needs clean data, consistent reporting, and stable operations — every day, without fail.

This is not a zero-sum game. In fact, the smartest organisations are finding ways to turn BAU into the foundation of AI-led transformation.

Why This Balance Is So Difficult — And So Critical

Let’s be blunt: AI transformation often fails not because of technology, but because of execution imbalance.

  • Focus too much on AI innovation? You risk building expensive prototypes that never get deployed.
  • Focus too much on operational delivery? Your teams burn out under the weight of reactive work, leaving no capacity to reimagine the future.

In retail, I’ve seen businesses use AI to predict demand — only to realise the underlying inventory data is weeks out of date. In utilities, AI models were abandoned because operations teams couldn't trust or interpret the outputs.

These aren’t technical issues. They’re organisational design failures — a signal that innovation and BAU have been left to compete, rather than collaborate.

A Better Way: Five Principles for Smarter AI Transformation

Drawing from experience across public and private sectors, here are five principles that help data leaders operationalise this balance:

1. Operational Excellence is the Launchpad for AI

AI thrives on data, fit for purpose — clean, timely, and trusted. If your operational systems are chaotic, your AI strategy is built on sand.

BAU provides real-time data and credibility essential for smarter transformation.        

High-performing data teams treat BAU not as maintenance, but as a source of insight. They embed observability, standardise definitions, and automate reporting — so they can focus on building models that matter.

2. Don’t Just Deliver — Design for Impact

Too often, AI projects chase after 'perfect' algorithms instead of the outcome. Leaders must reframe the question:

“How will this capability change the business — and what operational changes are required to realise it?”

From customer service bots to predictive maintenance engines, AI delivers value only when paired with business process change. This means co-designing with operations, building feedback loops, and measuring impact beyond deployment.

3. Run Your Team at Two Speeds

AI teams need room to explore — but that doesn’t mean abandoning delivery.        

Set up dual tracks:

  • BAU Track: Deliver BAU with discipline — Structured, SLA-bound, focused on stability and trust.
  • Innovation Track: Experiment, pilot, and iterate on high-value use cases.

By separating capacity and expectations, you reduce friction and preserve morale. Your teams stop fighting over priorities and start building momentum.

4. Make Innovation Part of the Workflow

Too many organisations isolate AI in an innovation lab. It becomes a silo — exciting, but disconnected.

The better approach? Cross-functional collaboration.

Embed innovation into existing business rhythms. Run transformation sprints with marketing, operations, or product. Translate AI from concept to prototype within live environments.

Innovation must feel real — not theoretical.        

5. Build a Culture Where It’s Safe to Transform

This is the human side of the equation. AI transformation involves risk, ambiguity, and change. Your teams must know they’re safe to try, learn, and evolve.

  • Reward curiosity, not just delivery.
  • Celebrate learning moments, not just success stories.
  • Make it okay to say, “We don’t know yet.”

The most transformative cultures aren’t fearless. They’re psychologically safe.

Final Thought: Innovation Is Earned, Not Assumed

AI is no longer a future trend — it’s the present battleground for competitive advantage. But it doesn’t replace BAU. It depends on it.

In a world of noise and novelty, consistency earns permission to change — and change earns the right to lead.        

The most effective data teams — and the most effective leaders — are those who can execute with reliability while designing with ambition.

They understand that:

  • BAU creates trust.
  • Innovation creates relevance.
  • And the space between the two is where transformation actually happens.


About the Author: Jo Chidwala brings extensive expertise in AI, data strategy, and enterprise transformation. His work bridges C-suite vision with real-world delivery, enabling organisations to innovate with purpose and precision.


Brandon Tan

🚀 I connect talent and tech so founders move faster

5d

This really hits home. It's frustrating to see great ideas get sidelined because of the daily grind. Finding that balance between keeping the lights on and pushing for innovation is so crucial. Thanks for shedding light on this!

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René Essomba

Building Agentic Platforms | AI | Data | Podcast Host | AWS Community Builder | Georgia Tech Alumnus | CrossFit - Masters Athlete

1mo

Very insightful, thanks for sharing 👌🏾

Dr M Maruf Hossain, PhD, MAICD

Global Top 100 Innovators in Data and Analytics 2024 | Leading organisational transformation with Data, AI, and Automation | Thought Leadership | Strategy to Execution | Author | Keynote Speaker | ex-IBM, Telstra

1mo

Love this, Jo. BAU is the most common reason where innovation and process improvement ends. And yet many organisations chose this path to stay in business.

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