With disruptive start-ups having created significant value and game changing new capabilities, the general view is they are good at innovation and effecting change. Examples of this are smartphones, search engines, social media, AI, Electric Vehicles, private space vehicles, etc.
Extending on this, there is a lot of innovation improving our lives that comes from enterprises (large, established companies).
A great example of these scenarios is the innovative start-up RIM (later BlackBerry) enabling people to do email on a mobile phone – any time, any place. However, it was Apple, already a well-established company, that made smartphones indispensable and ubiquitous.
The reality is that enterprises have a huge opportunity to leverage their considerable resources, capabilities, brand, etc. to further improve our lives and meaningfully improve business outcomes – if they are opportunistic, entrepreneurial and can innovate for impact. While there are many ways and technologies to do this, the big enabler is “ AI “.
And with Gen AI, enterprises are well positioned to do this.
Why ? Because they have lots of “ Data “.
The Opportunity with Gen AI and Enterprise Data
While GenAI solutions have a technology component, the secret sauce is leveraging the data they “feed on.” For example, a powerful large language model trained on comic books, would produce very different answers to queries from the same model trained with business information.
In addition, a large part of what determines the power, value and relevance of a GenAI solution is based on the quality and breadth of the data it consumed. This is where enterprises have a big advantage because they have many Customers, perform many transactions, a history, etc. This “Data” is the basis to differentiate in the market, better serve Customers, expand revenue streams, etc. All enabled by leveraging current enterprise resources and capabilities with AI and other technologies (ie: XR, BI, etc.) to make innovation more rewarding and the ability to monetize value creation to create significant new value. This is the new way of thinking and the mindset needed to be successful and to realize potential – for organizations and people.
How Enterprises are Innovating with AI
To have new solutions that people can trust and be valuable, etc., GenAI needs to train on data sets that are vast, credible and unique.
This is critical from a competitive perspective since there is lots of data available on the internet for GenAI solutions to train on. However, it’s difficult to see how such solutions could meaningfully differentiate themselves from each other using the same data ! Because of this, access to specialized data sets is essential to differentiating companies and improving outcomes from innovation using GenAI.
An example of this is the growing number of licensing deals and partnerships between technology companies and media companies – who have valuable proprietary data sets. News Corp, which publishes the Wall Street Journal, did a deal to share its content with OpenAI to power their chatbot service. The Associated Press and Shutterstock are other examples of companies with proprietary content/data sets that have inked partnerships with OpenAI. In addition, legal platforms are using AI to recommend contract language for new M&A deals or find non-standard clauses in older contracts. Healthcare platforms are using AI to recommend clinical procedures or pathways for patients. As well, compliance platforms now advise enterprises on where their key regulatory risks lie and how to address them. See the “ Technology Enabling Innovation “ section at www.cail.com/BI for additional insights and examples.
Conclusions
Companies that have “ Innovative Technology Solutions “ and “ Proprietary Content or Data Sets “ – are well positioned to have competitive advantage and create significant new value with AI. And the better the quality and quantity of the “ Data “ and sophistication of the AI platform, the greater the upside and ability to better manage change.
And to make good on this opportunity is why enterprises are rolling out AI-based capabilities to increase appeal of their current products and services as well as new AI solutions that are benefiting customers, partners, and employees that are meaningfully improving outcomes – today and for tomorrow.
Nov 22, 2024 CAIL Innovation commentary info@cail.com www.cail.com 905-940-9000