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AIMSPHERE

From AI Use Case Discovery to Deployment

AI Strategy:
A Step-by-Step
Guide

March 2024
dai.ki

© 2024 Daiki GmbH


AI Strategy: A Step-by-Step Guide

Table of Contents

I. Introduction 1

A. The Importance of AI in Modern Organizations 1

B. The AI Adoption Challenge 2

II. Cracking the Code: Crafting Your AI Strategy 4

A. AI Strategy: A Must-Have in the Digital Era 4

B. AI Strategy and Key AI Use Cases 5

Template for AI Use Case Identification 7

C. Step-by-Step Guide to Developing Your AI Strategy 9

Stage 1: Team & Policy 10

1. Leadership Support including Budget 10

2. AI Leadership & Collaboration 11

3. AI Policy including AI-related Objectives 13

4. Defined Roles & AI Skills 16

Stage 2: Exploring & Assessing 18

5. Setting the Foundation with Organizational Goals & KPIs 18

6. Use Case Discovery: Exploring Real-World Examples & Best


19
Practices

7. Use Case Prioritization 22

8. Feasibility Analysis 24

© 2024 Daiki GmbH


AI Strategy: A Step-by-Step Guide

9. AI Risk Assessment 29

Stage 3: PoC & Evaluation 34

10. Pre-Selection of AI Projects 34

11. Proof of Concent (PoC) 34

12. Validation & Testing 35

13. Cost-Benefit Analysis 37

Stage 4: Implementation 38

14. Prioritization & Final Selection 38

15. Pilot Phase 39

16. Execution & Monitoring 40

17. Iterative Process 41

18. Steady Capability Building & Scale 41

III. From Strategy to Action: Overcoming AI Implementation


42
Challenges with Saas

A. AI Integration withSaaS Solutions 42

B. Assessing SaaS Solutions 43

C. Mastering the Complexities: SaaS Solutions for Seamless and


44
Responsible AI Integration in Business Operations

© 2024 Daiki GmbH


AI Strategy: A Step-by-Step Guide

I. Introduction
Many organizations need help identifying the right artificial intelligence (AI) or
machine learning (ML) projects that align with their business goals. The technical
complexities of AI can make things even more daunting.

The primary objective of this whitepaper is to serve as a


comprehensive roadmap for these organizations seeking to embark on or
enhance their AI journey.

This whitepaper presents a step-by-step guide for developing a well-


structured AI strategy, offering practical assistance to guide
organizations through the dynamic landscape of AI and ML.

Whether your organization is venturing into the world of AI and ML or


seeking to enhance existing initiatives, this resource provides actionable
insights to help you ensure a strategic and effective approach.

A. The Importance of AI in Modern Organizations

In today’s fast-paced business landscape, the buzz around artificial intelligence


(AI) is getting louder, promising to reshape how organizations operate, compete,
and thrive across diverse industries.

AI technologies, encompassing widely used machine learning techniques like


supervised learning and advanced systems such as generative AI, including
ChatGPT and other Large Language Models, have reached a level of maturity that
makes them increasingly accessible and valuable for companies of all sizes.

Organizations may find themselves in awe of the immense power and capabilities
that advanced AI systems possess.

For smaller businesses, the big question is whether terms like Artificial Intelligence
and Machine Learning are just trendy buzzwords or essential parts of their daily
operations that could influence their future success and competitiveness.

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AI Strategy: A Step-by-Step Guide

The answer to this question depends on each business's specific industry, business
model, and goals.

However, in many cases, adopting AI can offer significant benefits, such as


improved efficiency, better decision-making, and enhanced competitiveness. While
AI's potential advantages are substantial, organizations must diligently evaluate
and strategically implement these systems.

Common challenges include:


the absence of a well-defined AI strategy
ineffective project management
the need for specialized expertise to implement and manage AI systems
data privacy and security concerns
the initial investment required for adoption

How to effectively integrate AI into existing workflows and processes can also pose
a hurdle for small and medium-sized enterprises (SMEs). However, with the proper
guidance and resources, these challenges can be overcome, allowing SMEs to
harness the full potential of AI for their benefit.

Organizations can harness these technologies to improve decision-making and


streamline processes, presenting significant opportunities for growth and
efficiency.

B. The AI Adoption Challenge

While the potential advantages of AI are compelling, organizations globally grapple


with the complexities of AI adoption and implementation. The rapid proliferation
of ever-evolving AI technologies does not automatically translate into
widespread adoption within organizations.

Instead, organizations encounter numerous challenges. EY’s CEO Outlook


Pulse from October 2023 found that while CEOs worldwide acknowledge the
promise of AI, most contend with substantial difficulties in crafting and
implementing associated strategies and identifying potential use cases.

A considerable number of companies globally have either not yet embraced AI


and ML or are still in the exploratory phases.

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AI Strategy: A Step-by-Step Guide

According to the IBM Global AI Adoption Index 2022, only 35% of companies
have integrated AI into their business operations. An additional 42% of companies
are actively exploring AI adoption as part of their strategic considerations.

These findings underscore the ongoing transformation and growth potential


within the realm of AI, as many organizations are still in the process of
recognizing and harnessing the benefits these technologies can offer to enhance
their operations and competitiveness.

Similarly, Cisco's AI Readiness Index highlights a substantial disparity between


companies' aspirations for AI adoption and the practical challenges they face in
doing so.

This global survey of over 8,000


private sector professionals involved
in AI integration and/or deployment 97%
found that although 97% of
acknowledged an urgency
respondents acknowledged a to adopt AI technology
heightened sense of urgency to
adopt AI technology within their
organizations, only 14% are fully
equipped to execute this transition
due to lack of infrastructure, policies,
talent, organizational culture, and
14%
data. are equipped to execute
this transition within their
organizations

According to the annual McKinsey Global Survey on the current state of AI from
August 2023, the overall adoption of AI technology remains relatively constant, with
55% of respondents confirming that their organizations have embraced AI in some
capacity.

Still, many organizations have yet to extend AI's reach beyond a single
business function. This indicates that AI applications continue to be limited in
scope, underscoring potential opportunities for broader AI integration across
industries. While the adoption of AI offers immense potential for organizations, it is
not without its challenges.

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AI Strategy: A Step-by-Step Guide

Lack of AI expertise, data quality issues, alignment with business goals, and
regulatory considerations are common hurdles that organizations must
overcome.

Crafting a successful strategy that aligns with compliance and governance can be a
complex undertaking. By implementing strategic approaches and fostering
collaboration between various stakeholders, organizations can navigate these
challenges and unlock the transformative power of AI, paving the way for
enhanced competitiveness and innovation.

II. Cracking the Code: Crafting Your AI


Strategy

A. AI Strategy: A Must-Have in the Digital Era

Embarking on a successful AI journey requires a thorough understanding of how


AI/ML can bring value to your organization and customers. Given the significant
failure rates observed in AI projects, this analysis is crucial, with estimates
indicating a failure rate as high as 80%, almost double the failure rate seen in
corporate IT projects a decade ago.

An AI strategy is a
comprehensive plan for how an
organization will deploy artificial
intelligence to achieve specific
goals.

It ensures that AI initiatives align with the


organization's overall goals, solve
business challenges, and help them gain
a competitive advantage.

© 2024 Daiki GmbH 4


AI Strategy: A Step-by-Step Guide

The strategy should clearly demonstrate how AI activities and investments


will yield tangible business benefits and returns and must outline the allocation
of resources such as budget, technology, and personnel for the effective execution
and maintenance of AI solutions.

A clear, well-implemented AI strategy minimizes risks, optimizes resource


allocation, and significantly enhances the likelihood of achieving successful
outcomes in AI projects.

B. AI Strategy and Key AI Use Cases

A robust AI strategy revolves around thoughtfully selecting and prioritizing use


cases that align with defined goals while ensuring responsible development and
successful execution.

Use cases represent real-world applications where AI can make a


significant impact within or on behalf of an organization.

While some use cases may yield immediate benefits, such as improving customer
service through chatbots, others may represent longer-term endeavors, such as
optimizing supply chain operations for sustained cost savings.

For instance, many organizations prioritize AI in IT infrastructure and


cybersecurity to boost efficiency and security.

Additionally, AI is being increasingly applied in customer experience and


financial management, areas where it can significantly enhance interactions
and optimize financial processes.

An AI strategy aligns the use case discovery process with the organization's
overarching goals and objectives.

It provides the framework to identify use cases that are directly relevant to
achieving these strategic outcomes.

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AI Strategy: A Step-by-Step Guide

The AI strategy guides the selection, prioritization, implementation, and evaluation


of these use cases.

With the help of an AI strategy, use cases can be prioritized based on their
potential impact on the organization's goals. This ensures that AI investments are
purpose-driven and are chosen based on their alignment with strategic
objectives rather than personal preferences.

A good AI strategy also includes evaluating use cases for ethical, legal, and
operational risks and integrating risk mitigation into the plan.

It also sets clear timelines for each use case, detailing when they will start, develop,
be tested, and launched. This approach ensures that AI projects are executed
systematically and strategically.

The systematic process of


identifying and prioritizing
specific AI use cases, guided
by an AI strategy, guarantees
that discovering valuable AI
applications for the business
is not a matter of chance
but rather an established
and repeatable procedure.

Furthermore, with a structured strategy, organizations can consistently evaluate


and prioritize potential use cases based on predefined criteria.

A well-defined AI strategy includes key performance indicators (KPIs) that allow


organizations to measure the success of each use case.

It also helps organizations quantify the impact of AI initiatives and make data-
driven decisions about scaling, optimizing, or discontinuing projects.

© 2024 Daiki GmbH 6


This Use Case Identification Template can be
used to assist organizations in AI use case
selection, and be used in the Use Case Discovery
step of the AI strategy development process.

Template for By following the template, AI use cases can be


systematically identified and evaluated so that

AI Use Case they are aligned with business goals and values.
Each element within this questionnaire is

Identification intricately interconnected, forming a cohesive


framework for AI use case identification.

01 Link to Strategic Goals 05 AI Approach & Required Data

How does this use case align with the organization's Which AI approach (e.g., machine learning, natural
overarching strategic goals? language processing) will be used for this use case?

Describe the specific strategic objectives this use case What data sources and types are required to support
aims to address. this use case?

02 Objectives 06 Ethical & Legal Issues

What are the specific objectives of this use case? Are there any ethical/legal considerations associated
with this use case?
How do these objectives tie into the overall business
goals? How will ethical concerns and legal compliance be
addressed during execution?
What are the (end) users of the AI system, and how do
they benefit from the use case? Are there any legal/ethical risks that should be included
in the risk impact analysis?

03 Measures of Success (KPIs) 07 Technology & Infrastructure

How does this use case align with the organization's What technology and infrastructure requirements and
strategic goals? challenges are associated with this use case?

Describe the specific strategic objectives this use case Is the organization equipped to support the technical
aims to address. aspects of this use case?

04 Use Case Owner 08 Skills & Capacity

Who will be responsible for overseeing and What skills and expertise are required to execute this
championing this use case? use case?

How does their role impact the successful execution of Does the organization have the necessary capacity and
the use case? resources to implement this use case effectively?

© 2024 Daiki GmbH 7


09 Implementation 12 Impact Assessment

How will the use case be implemented (e.g., in-house, Estimate the potential impact of this use case on
outsourced, partnerships)? achieving business objectives.

What is the proposed implementation approach, and Consider factors like increased revenue, cost reduction,
why was it chosen? improved customer satisfaction, operational efficiency,
and any ethical and privacy implications.

Conduct a risk assessment for identified legal, ethical,


business, and operational issues for this use case.

10 Change Management 13 Proof of Concept (poC)

How will implementing this use case impact employees Is a PoC necessary to validate the feasibility and
or processes? technical aspects of this use case?

Which stakeholders should be included early on in the If so, outline the key components of the PoC and its
use case development and implementation to facilitate objectives.
successful change processes?

What strategies are in place for managing change and


ensuring a smooth transition?

11 Feasibility Analysis 14 Prioritization

Evaluate the overall feasibility of implementing this use How does this use case rank in terms of its potential
case. business impact and alignment with organizational
goals?
Assess the following factors:
data availability, Define a clear prioritization metric, for example, by
technical capabilities, combining issues like business value, feasibility, risk,
resource requirements, strategic goals, effort, and others as a weighted sum.
legal and regulatory constraints, and
ethical considerations. Explain why this use case should be considered a
priority.

By thoughtfully considering and addressing these elements, organizations can


realize their AI strategy based on identifying high-impact use cases, ensuring that
resources are directed toward projects with the highest likelihood of success
and unwavering alignment with business goals.

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AI Strategy: A Step-by-Step Guide

C. Step-by-Step Guide to Developing Your


AI Strategy
This section will guide you through the essential components of AI strategy
development. Whether your organization is entering the AI domain for the first
time or has previous experience, our objective is to demystify the intricacies of AI
strategy development.

We offer a comprehensive and user-friendly guide, breaking down the process


into digestible, step-by-step elements. This provides your team with the
necessary knowledge and tools to craft and execute impactful AI strategies in
alignment with your organization's goals.

AI Strategy: 4 Stages

Stage 1: Team & Policy Stage 2: Exploring & Assessing

1. Leadership Support incl. Budget 5. Organizational Goals & KPIs


2. AI Leadership & Collaboration 6. Use Case Discovery
3. AI Policy incl. AI-related Objectives 7. Use Case Prioritization
4. Defined Roles & AI Skills 8. Feasibility Analysis
9. AI Risk Assessment

Stage 3: PoC & Evaluation Stage 4: Implementation

14. Prioritization & Final Selection


10. Pre-selection of AI Projects
15. Pilot Phase
11. Proof of Concept (PoC)
16. Execution & Monitoring
12. Validation & Testing
17. Iterative Process
13. Cost-Benefit Analysis
18. Steady Capability Building & Scale

© 2024 Daiki GmbH 9


AI Strategy: A Step-by-Step Guide

Stage 1: Team & Policy

1. Leadership Support including Budget

A successful AI strategy within an organization relies heavily on robust


leadership support, particularly prioritization from the executive level, including
the C-suite and board. Strong endorsement and commitment from top leadership
are crucial in integrating AI initiatives into the organizational fabric.

This involves aligning AI goals with overall business objectives, securing necessary
resources, and fostering a culture that embraces and adapts to AI advancements.

The visible support of leaders at the highest levels ensures a cohesive


and coordinated effort, making AI strategy an integral part of an
organizational agenda.

Many leaders are surprised to learn that investing in developing AI solutions


doesn't yield returns from just a few isolated use cases. Instead, it's essential
to have an AI strategy that is integrated across the enterprise and closely
aligned with the overall business strategy.

However, a common mistake many companies make is to focus too much on


individual use cases or to leave the AI strategy predominantly in the hands of IT or
data science departments. This approach can limit the organization's capacity to
leverage AI effectively in various areas such as customer engagement, proudct
launches, speeding up market entry, securing supply chains, and more. That’s why
it’s critical to involve stakeholders across departments.

Effective AI strategy requires a more holistic, enterprise-wide approach for


meaningful impact and competitive advantage.

Leaders need not be tech experts but should understand AI's impact on the
business. They should foster a collaborative environment where business and IT
teams work together, ensuring that AI initiatives align with both technological
capabilities and business objectives.

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AI Strategy: A Step-by-Step Guide

2. AI Leadership & Multidisciplinary Collaboration

Establishing AI leadership, represented by a knowledgeable facilitator or


steering committee, right from the outset provides the expertise needed to
effectively guide the AI design, development, implementation, and operation
process.

It also ensures a seamless alignment between the selected use cases and the
capabilities and goals of AI within the organization.

For AI implementation within


organizations, having effective
AI leadership is one of the
most critical factors in
navigating the complexities of
realizing an AI project.

Effective leadership implies that the appointed leaders of AI strategy development


and/or concrete AI initiatives must create a clear vision for AI projects, ensuring
they align with the organization's overall goals.

The aim is to ensure that the business strategy set at the executive level
seamlessly translates into IT execution.

Leaders also navigate the complexities and challenges of implementing AI. They
are responsible for obtaining the necessary resources and fostering collaboration
across different departments. Their role is key in ensuring the organization
adapts to and evolves with new AI/ML technologies.

Commitment from leadership is especially important for AI/ML because compared


to more iterative developments of other technologies, AI implementation can be
quite disruptive or impactful and, therefore, requires change processes backed by
trust and vision from management.

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AI Strategy: A Step-by-Step Guide

The organizational structure of the AI team should be determined, considering


whether to establish a centralized AI team that collaborates with other groups or to
disperse machine learning and AI capabilities across different product teams.

This decision should be influenced by factors such as the organization's size and
culture.

In any case, without a centralized hub overseeing the decision-making


process, there is a notable risk of choosing use cases that may not be suitable
for AI development.

This can lead to unproductive outcomes; for example, companies may


unintentionally focus on business process issues rather than true AI use cases.

Next to an AI team lead, a successful AI team should include not only data
scientists and engineers but also individuals with a deep understanding of the
organization's operations and challenges, including executive leadership and, if
necessary, external industry specialists.

By bringing together diverse perspectives, organizations can uncover


opportunities and challenges that might not be apparent when viewed from
an individual perspective.

Having all hands on deck ensures AI efforts align with strategic objectives, secures
resources, and promotes responsible AI practices throughout the AI lifecycle.

A multidisciplinary approach is particularly important for specific phases of the


AI strategy.

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AI Strategy: A Step-by-Step Guide

For example, during the Use Case Prioritization or Feasibility Analysis steps to
ensure comprehensive assessments, risk mitigation, and cost-benefit analysis.
These domains include law, ethics, and design, among others.

Team alignment is another important aspect of the collaborative


approach across departments and roles. Successfully implementing AI often
requires adjustments to business processes and employee workflows.

Failure to address team alignment can lead to a lack of support and


adoption. Teams with conflicting priorities may not invest the necessary
time and effort to adapt their processes, leading to the eventual failure of
the AI solution.

Such aligned and cross-functional teams can collectively assess business


processes, identify pain points, and brainstorm innovative ways AI can
address these issues.

Diverse teams are also important to address bias and increase the likelihood of
creating a well-rounded and forward-thinking AI strategy aligned with
organizational goals and industry trends.

Additionally, alignment on strategy through a collaborative approach is critical for


increasing AI investments and budgets.

For instance, in healthcare, collaboration among medical experts, data


scientists, legal specialists, ethicists, designers, and operations
professionals ensures that AI diagnostic systems align with clinical standards,
maintain data privacy, address biases, seamlessly integrate into clinical
workflows, and manage operational and financial risks.

3. AI Policy including AI-related Objectives

AI technology, inherently neutral, takes on characteristics based on its application,


ranging from alignment with and service to the company's objectives, from
adherence to ethical standards to potential ethical concerns to fairness and the risk
of biases.

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AI Strategy: A Step-by-Step Guide

This reality highlights the necessity to formulate an AI policy that serves as a


compass, ensuring the responsible deployment of AI in alignment with the
organization's overarching goals and values.

An AI policy is a formally documented framework put in place by an


organization to oversee and regulate the processes involved in developing
and utilizing AI systems.

The AI policy serves as a set of


guidelines and principles that
guide the organization's
approach to AI-related activities,
ensuring a structured and
controlled implementation of AI
technologies.

It ensures that relevant policies guide the entire lifecycle of AI systems, including
development, purchase, operation, and use. Additionally, an AI policy assesses the
impact of AI objectives on other policies, especially in domains intersecting with AI,
such as quality, security, safety, and privacy.

Developing an AI policy encompasses crucial considerations, including the


following:
alignment with business strategy
adherence to organizational values
evaluation of risk tolerance
compliance with legal requirements
understanding the risk environment
assessing the impact on stakeholders

This policy incorporates guiding principles that shape all AI-related activities and
outlines procedures for handling deviations and exceptions. Additionally, it typically
delves into topic-specific aspects, covering areas like AI resources, AI system
impact assessments, and the development of AI systems.

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AI Strategy: A Step-by-Step Guide

Periodic analysis and updates of policies should be conducted to ensure their


relevance, and the AI policy should be informed by the policies set by the
organization's governing body.

Additionally, in the context of AI policies, it has become best practice to


define objectives that guide the use of AI in a responsible and trustworthy
manner.

These objectives, often articulated as Responsible AI (RAI) Guidelines span


diverse dimensions and objectives such as fairness, maintainability, privacy,
robustness, safety, security, and transparency.

RAI Guidelines go beyond compliance. They are a strategic asset for aligning
AI practices with business values and societal expectations.

AI governance, integral to realizing the AI policy, includes focusing on


RAI throughout the AI lifecycle, emphasizing ethical, transparent,
accountable, and fair systems from development to deployment.

Incorporating responsible and ethical principles into AI strategy


development is crucial, given AI's growing societal impact.

Responsible AI involves mitigating risks like bias, discrimination,


privacy breaches, and unintended consequences, contributing to an
organization's reputation and legal compliance.

Responsible AI also demands stakeholder inclusion throughout the AI


lifecycle, emphasizing user engagement for user-centric and
accountable AI systems.

As organizations delve into the transformative potential of AI, these objectives


serve as a framework and commitment for an ethical approach to AI
deployment to foster stakeholder trust and ensure RAI practices.

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AI Strategy: A Step-by-Step Guide

4. Clearly Defined Roles & Ensuring AI Skills

Within this cross-functional and multidisciplinary approach, clear roles and


responsibilities must be defined. Each team member should understand their
role and how it contributes to the overall success of AI initiatives. This clarity
fosters effective collaboration, minimizes duplication of efforts, and ensures that AI
projects are executed efficiently and cohesively.

Key roles that an ideal AI team should include:

Key Roles Description

Organizations should designate a leader responsible for guiding


AI initiatives, ideally with a formal title like Chief AI Officer or AI
AI Leadership Director. This leader plays a crucial role in providing strategic
direction, overseeing AI projects, and ensuring alignment with
the organization's business objectives.

Product managers are essential team members who act as


intermediaries between technical teams and business
stakeholders. They play a pivotal role by translating business
Product Managers
requirements into technical specifications, managing project
timelines, and ensuring that AI solutions effectively meet user
needs.

Business owners from relevant business units contribute


invaluable domain expertise. They advocate for AI adoption
Domain Experts within their respective departments, providing insights into
specific industry needs and helping to tailor AI solutions
accordingly.

Data scientists and engineers are the technical backbone of AI


Data Scientists & teams. They process and analyze data, build machine learning
(ML) Engineers models, and develop AI solutions. They are crucial for turning
data into actionable insights.

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AI Strategy: A Step-by-Step Guide

Key Roles Description

Every AI project that aims to build a production-ready AI


Software system is ultimately a software project. Therefore, software
Developers engineers and developers are required as central members of
the team if in-house AI systems are developed.

Experts in ethics, law, and compliance are essential to ensure


Ethics, Legal, and
that AI projects adhere to ethical standards and regulatory
Compliance Experts
requirements.

While smaller organizations may not have a dedicated Chief AI


Officer, having executive sponsors who provide leadership,
Executive Sponsor
support, and resources for AI projects is essential for their
success.

Establishing clear decision-making competencies and accountability among


these roles is crucial for effective AI project management and successful
outcomes.

In larger organizations with complex AI initiatives, there may be additional roles


beyond the ones mentioned above, which can be critical for successfully executing
AI projects.

In addition, essential roles such as ML Developers, Data and Software Architects,


ML Engineers, Data Engineers, Data Stewards, and AI Designers play crucial
functions in implementing machine learning models, constructing and overseeing
data infrastructure, maintaining data governance, and crafting user experiences.

While ML Developers and Software Developers are integral to nearly all ML in-house
projects, roles like Data Steward and AI Designer may not be commonly found in
smaller teams.

In general, in smaller organizations or projects, the structure of AI teams may


be more compact, with some roles being combined or covered by fewer
people. The size and complexity of the project or organization typically dictate the
extent of specialization needed in the AI team.

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AI Strategy: A Step-by-Step Guide

Stage 2: Exploring & Assessing

5. Setting the Foundation with Organizational Goals &


KPIs

The strong foundation for AI strategy development is a thorough understanding of


your organization's overarching goals and specific challenges. Take a critical look at
your organization's key performance indicators (KPIs) and success metrics.

If your organization hasn't established KPIs yet, it's essential to start developing
them. This critical step lays the foundation for identifying AI use cases that can
effectively address specific challenges, capitalize on potential opportunities, or
generate cost savings.

It is vital to keep in mind that an AI strategy should never exist in isolation


but should be central to your overall business strategy.

Make it a rule to establish the precise objective that any AI project needs to help
your organization achieve tangible business outcomes and measurable results.

Put emphasis on identifying opportunities where AI technologies are in


a unique position to add value, provide innovative solutions, and
contribute to your business KPIs.

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AI Strategy: A Step-by-Step Guide

6. Use Case Discovery: Exploring Real-World Examples &


Best Practices

The use case discovery process is


integral to building a robust AI
strategy.

It allows organizations to identify


specific scenarios where AI
applications can substantially
benefit their organization.

Some general use cases of AI/ML across various business functions include
automating tasks in data and analytics, customer support through chatbots and
NLP-driven call systems, operations via robotic process automation, marketing
benefits from deep learning analytics, using AI for lead development in sales, or
using AI in human resources to improve candidate profile reviews and employee
satisfaction surveys.

On the other hand, AI applications showcase their transformative impact in various


sectors:

In healthcare, AI facilitates faster diagnoses through real-time predictive


analytics, expands access to services, and accelerates drug discovery and
clinical research.

The telecommunications industry benefits from AI optimizing network


performance, enhancing audio/visual quality, and preventing customer
churn.

In manufacturing, intelligent automation, including industrial robots and


supply chain management, improves efficiency and minimizes human
error.

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AI Strategy: A Step-by-Step Guide

Government agencies leverage AI/ML for improved public services,


streamlined data management, and data-driven policymaking. AI
enriches retail and e-commerce experiences through personalized
recommendations, chatbots, and automated checkout processes.

The rise of electric and autonomous vehicles sees AI contributing to


vehicle perception, driving assistance, and predictive maintenance.

Education benefits from AI supporting course design, acting as a


research assistant, and facilitating tutoring.

In finance, AI aids in fraud detection, automates invoicing, and enhances


investment research, resulting in increased customer satisfaction and
diversified service offerings.

Organizations need to embark on a comprehensive use case discovery


process to harness the transformative power of AI.

This involves learning from real-world examples, conducting market research,


analyzing competitors, and exploring case studies. By exploring use cases,
organizations can learn from proven strategies offering a valuable blueprint for
implementing AI effectively within their context.

Successful real-world examples serve as benchmarks for assessing an AI


strategy, ensuring it aligns with industry best practices and is set up for success.

Real-world success stories inspire


creativity and encourage your
organization to work together in
exploring innovative AI
applications.

It’s important to have a structured and inclusive approach when brainstorming


AI use cases.

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AI Strategy: A Step-by-Step Guide

Encourage input from diverse stakeholders at all levels, implement methods to


mitigate groupthink, and create an environment where innovative and
unconventional ideas are welcomed.

Consider using techniques like anonymous idea submission to prevent bias and
ensure that a broad range of perspectives is considered during the ideation
process.

Real-world examples also shed light on potential challenges and pitfalls


that may arise during AI implementation, allowing organizations to manage
these risks proactively.

When you can anticipate and address obstacles based on real-world


experiences, it significantly reduces the likelihood of costly setbacks and
ensures a smoother AI adoption journey.

During the use case discovery stage in AI, it is essential to keep KPIs in mind
to identify and prioritize use cases that align with strategic goals and
measurable success criteria.

Integrating KPIs into the use case discovery process ensures a focused and
goal-oriented approach, facilitating the selection of AI applications that can
deliver tangible value and positively impact the organization's overall
performance.

In addition to KPIs, other important factors are risks, strategic alignment,


and feasibility.

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AI Strategy: A Step-by-Step Guide

Before the final assessment, use case discovery should be open and always
start with the user of the future AI system in mind. User-centric design
can be a valuable instrument for guiding use case research and selection.

Identify a set of activities within the organization that can be


automated through machine learning. These activities can span across
various functions and product teams.

Engage in a healthy debate within the C-level team and the overall team
to discuss and determine which activities are worth pursuing and which
ones are not.

7. Use Case Prioritization

Once the foundation has been set, you can begin identifying a compact set of use
cases.

It's important to remember that it's not about the quantity of use cases but rather
the quality and alignment with your overarching business goals. These use
cases should address specific goals, challenges, and the unique context of your
industry.

When selecting these use cases, anticipate


the potential impact on your business, the
feasibility of implementation, and data
availability.

Use cases with a clear ROI and alignment


with business objectives should be prioritized.

Additionally, take a user-centric approach and involve stakeholders in the


decision-making process. Their input can provide valuable insights and help ensure
that the chosen use cases are relevant and beneficial to different parts of the
organization.

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AI Strategy: A Step-by-Step Guide

After identifying your AI use cases, develop a detailed implementation plan. This
plan should include a timeline, resource allocation, and key performance indicators
(KPIs) to measure success.

It's also crucial to consider the ethical implications of your AI applications and
ensure compliance with relevant regulations and standards.

Not all use cases are created equal in terms of their potential business impact.
Prioritization of business objectives enables organizations to allocate resources and
focus their efforts on the most promising AI projects that are closely aligned with
their business goals.

Using the key metrics that drive your


organization's objectives, prioritize
your business objectives based on
their strategic importance and
potential impact.

Consider factors such as revenue


generation, cost reduction, risk
mitigation, and strategic
alignment. Determine which
objectives are most critical for
achieving success.

You can apply a scoring system to these criteria so your organization can later
objectively assess the potential return on investment (ROI) for each use case.
Here, it's crucial to recognize the need for scaling AI use cases to realize
substantial returns on investment.

Then, determine which AI use cases should be prioritized based on their


potential to deliver significant value to your most relevant organizational
goals.

This approach aims to ensure that the organization will only invest in AI projects
that are not only technologically feasible but also strategically beneficial and
financially sound.

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AI Strategy: A Step-by-Step Guide

For smaller teams with limited resources, it is advisable to adopt a


more concentrated strategy from the beginning.

This involves narrowing down the number of AI use cases to only 2-3
opportunities before moving to the next stages of Feasibility Analysis,
the AI Risk Assessment, and Proof of Concept (PoC).

The focus should be on selecting a few key use cases that are most
closely aligned with the organization or team’s specific strategic and
business goals.

This approach allows for more efficient use of resources and a higher
likelihood of successful implementation.

Another approach is going after building an AI portfolio with a mix of quick-win


projects for immediate impact and long-term projects for strategic advantage.

Quick wins involve optimizing simple touchpoints, often using off-the-shelf ML,
to expose the organization to AI potential and build consensus.

Long-term projects aim to redefine entire processes, such as automating entire


workflows.

8. Feasibility Analysis

Performing a comprehensive feasibility analysis is a central element of the AI


Strategy.

A feasibility analysis:

identifies potential challenges early

documents the advantages and


disadvantages of particular use cases

facilitates informed decision-making


regarding the progression of AI
initiatives

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AI Strategy: A Step-by-Step Guide

The feasibility analysis is a prerequisite for making informed decisions on


whether to advance to pilot phases and beyond in AI initiatives.

It comprehensively evaluates these factors to ascertain the effectiveness and


viability of a proposed AI project.

This analysis includes examining data readiness, technological infrastructure,


and potential implementation hurdles, ensuring the AI initiative is feasible across
multiple dimensions.

In practice, proper and rigorous feasibility analyses are often missing.


Organizations often either overlook or inadequately perform them.

Many AI projects do not proceed beyond the pilot phase due to


shortcomings in the feasibility analysis process.

Insufficient analysis can result in advancing projects without a clear grasp


of their practicality, leading to issues in later stages, lost resources, and
project failures.

The feasibility analysis should encompass the following key factors:

Data Technical Resource


Availability Capabilities Requirements

Cost-Benefit Legal & Regulatory Data Responsible &


Analysis Constraints Privacy Ethical AI

Data Availability

The foundation of successful AI/ML use cases lies in high-quality data. The
Feasibility Analysis evaluates whether the necessary data is accessible and of
sufficient quality to support the use case.

This includes evaluating data sources, volume, and relevance.

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AI Strategy: A Step-by-Step Guide

Assessing the availability of data and resources needed for data


preparation is a critical step in ensuring that data will be fit for the
purposes of the AI use case.

Data readiness is a significant challenge, with Cisco’s AI Readiness Index


2023 stating that more than half of organizations currently have limited or no data
preparedness.

Incomplete, outdated, or biased data can undermine the effectiveness of AI


algorithms.

Another issue is data centralization and data silos which limit potential, increase
security risks, and add complexity to data accuracy.

Identify any data gaps that may need to be addressed.

Data gaps encompass missing data, data disparity, and misinterpretation.

Address missing data by identifying gaps with tools like surveys, online tracking,
and analytics.

The actual data preparation occurs in the Proof of Concept (PoC) and later
phases.

In the PoC and Implementation phases, data engineers and scientists must
clean, preprocess, and transform data for training and inference.

Additionally, organizations may need to invest in data infrastructure, storage,


and governance to maintain data quality over time.

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AI Strategy: A Step-by-Step Guide

Technical Capabilities

The feasibility analysis scrutinizes your infrastructure and tools to evaluate your
organization's technical readiness for AI.

Examine the organization's existing technical infrastructure and tools to


ascertain if they can support the proposed AI solution.

This may involve assessing computational resources, software, and


integration capabilities. Ensure they support the proposed AI solution.

Technical infrastructure is often provided by third-party vendors.


Organizations should make sure that they have a transparent selection and
oversight process in place to assess the suitability and trustworthiness of IT
partners.

Resource Requirements

Resource Requirements in the feasibility analysis encompass identifying necessary


human expertise, potential costs, and the availability of skilled personnel for
successful implementation.

Cost-Benefit Analysis

A cost-benefit analysis evaluates explicitly the financial aspects, comparing the


costs of implementing the project against the expected benefits.

It's essential to determine whether the project is economically viable and aligns
with the organization's financial goals. Conducting a cost-benefit analysis assesses
the business value and ensures the project is still on track with the defined
objectives.

Legal & Regulatory Constraints

Legal and regulatory constraints represent a critical aspect of AI feasibility


assessments. Organizations must proactively analyze the complex legal
landscape to ensure the compliant deployment of AI solutions.

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AI Strategy: A Step-by-Step Guide

Data Privacy

One important legal aspect of


almost any AI project is data
protection. Different regulations
and, most importantly, internal and
external users of your AI product
demand robust data protection
and privacy measures.

Consult with legal experts on whether the proposed use case and the data sources
it involves are also feasible in this regard. Strategic decisions in this phase
impact the credibility and success of the AI system.

Failure to address these constraints adequately from the onset can result in legal
liabilities, financial penalties, reputational damage, and disruptions to AI projects.

Responsible and Ethical AI

Incorporating Responsible AI principles into a feasibility study involves assessing


the potential AI projects against key ethical standards.

This includes examining AI governance aspects like privacy, accountability,


auditability, robustness, security, transparency, explainability, fairness, non-
discrimination, human oversight, and the promotion of human values.

For example, AI system evaluation could involve benchmarking against


alternative models and applying known techniques to enable model
interpretability, where applicable and feasible.

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AI Strategy: A Step-by-Step Guide

By evaluating these factors, a feasibility study can ensure that the AI initiative
aligns with ethical practices and societal values, addressing the potential risks and
societal impacts.

The above-mentioned critical factors determining the viability of


implementing a specific AI project can be assigned scores, leading to an
overall feasibility score for each use case.

Quantifying feasibility will help to prioritize use cases, ensuring that


resources are allocated to projects with the highest likelihood of success.

It also helps identify potential risks and challenges that may need to be
addressed early in the project lifecycle, minimizing future disruptions
and legal liabilities.

Based on this analysis, the team involved in the feasibility analysis


provides recommendations regarding the use case's feasibility.

9. AI Risk Assessment

Once a project is deemed feasible, the next step is to conduct an AI Risk


Assessment for each use case.

While feasibility focuses on project viability, risk assessment identifies and


mitigates potential negative impacts.

This step has become increasingly important due to growing awareness and
concern over the ethical implications of AI. The evaluation is usually proportional
to the AI system's potential impact.

An AI Risk Assessment helps


organizations evaluate the
risks and benefits associated
with deploying AI technology
in a specific use case.

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AI Strategy: A Step-by-Step Guide

The risk assessment aims to identify risks that prevent the organization from
achieving its AI objectives and to conduct an AI system impact assessment to
assess the potential consequences of AI to the organization, individuals, and
society at large.

The risk assessment process should be repeatable and transparent,


allowing you to compare results across various AI use cases. It should take
into account factors such as the domain, application context, intended use,
and external/internal context of AI systems.

For an AI Risk Assessment, organizations can follow these steps:

1. Defining the Level of Risk Acceptance:


Like with any risk assessment, the AI Risk Assessment should start with
preliminary considerations and documentation of the organization’s risk
appetite, ideally based on the establishment of criteria to distinguish between
acceptable and non-acceptable risks.

The level of risk acceptance represents the organization's willingness to


tolerate or embrace certain risks without further treatment or control
measures, aligning with its overall risk management strategy.

2. Assessing against AI Policy and AI Objectives:


For every use case that undergoes an AI risk assessment, the organization
identifies risks that can either facilitate or impede the achievement of its AI
objectives.

This involves a comprehensive evaluation of potential factors that may


contribute positively or present obstacles to the successful realization of AI-
related goals.

AI risk sources can result from various factors, including uncertain


environments, transparency challenges, automation impacts on safety and
fairness, data quality, hardware issues, life cycle vulnerabilities, and potential
pitfalls in technology readiness.

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AI Strategy: A Step-by-Step Guide

Throughout the risk assessment process, organizations should refer back to


potential risk sources related to the organization's AI-related objectives,
which were defined in the AI policy.

Proceeding in this manner, the AI Risk Assessment might reveal risks leading to
unfairness for specific individuals or groups, disclosure of personal data, increased
costs, diminished customer satisfaction, or operational inefficiency, highlighting
negative impacts on AI objectives.

3. AI System Impact Assessment:


An AI System Impact Assessment is the process of evaluating the potential
consequences of an AI system's development, provision, or use on
individuals, groups, and society at large.

The AI System Impact Assessment


aims to identify potential
consequences resulting from the
deployment, intended usage, and
foreseeable misuse of an AI system
on individuals, groups, and
societies.

This assessment considers technical and societal contexts and needs to be


documented for reference. Specialized AI system impact assessments, such as
those focusing on safety, privacy, or security impacts, can also be conducted as
an integral part of the organization's comprehensive risk management
activities.

The results of these impact assessments are then incorporated into the overall
AI Risk Assessment.

During the entire AI risk assessment, including the AI System Impact Assessment,
thoroughly document potential consequences and the likelihood of adverse
events.

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AI Strategy: A Step-by-Step Guide

This will result in levels of risk referring to the degree of potential harm or impact
associated with specific risks.

4. Evaluation of Risks:
In the next step, the level of risk should be evaluated, comparing results with the
organization’s predefined criteria and risk appetite.

Based on this, prioritize identified risks, guiding subsequent risk


treatment strategies to address and mitigate the most critical issues.

This structured approach ensures a comprehensive understanding of


potential threats and informs prioritized actions for effective risk
management.

5. AI Risk Treatment
To manage the prioritized AI risks effectively, the organization needs to choose
suitable risk treatment options.

A statement of applicability can be used to outline the controls selected to


treat AI risks.

It justifies the inclusion and exclusion of controls, ensuring they align with
organizational objectives.

Based on this assessment, a risk treatment plan is formulated.

While the statement of applicability justifies the inclusion and exclusion of


controls, the risk treatment plan outlines the chosen risk treatment
options and associated controls, obtaining management approval and
aligning with organizational objectives.

The risk treatment plan serves as a guide for addressing identified AI risks
within the organization.

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AI Strategy: A Step-by-Step Guide

Throughout this whole procedure, the organization should retain documented


information about the AI risk assessment and risk treatment process.

Also, at this stage, transparent and clear communication with


stakeholders is once again vital.

Keeping stakeholders informed about the AI project, its goals, potential


impacts, and ethical considerations builds trust, fosters collaboration, and
ensures that AI projects continue to align with organizational values and
ethical standards throughout their operation.

6. Follow-Up
While an AI Risk Assessment needs to be done before putting an AI system into
operation, it is essential to review and adjust it periodically to reflect changes.

AI systems are not static; they


may evolve, be repurposed, or
undergo modifications over time.

After implementation, you should


reassess mitigation requirements,
possibly initiating Corrective and
Preventive Actions (CAPAs) as
needed.

For instance, if the AI system is repurposed for different tasks, if significant


modifications are made, or if new risks emerge, for example, from new real-world
data or new uses of the AI system, the assessment should be updated to address
new risks and ethical considerations.

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AI Strategy: A Step-by-Step Guide

Stage 3: Evaluation & PoC Testing

10. Pre-Selection of AI Projects

Based on the outcomes of the assessments of the business value, risk, and
feasibility of AI projects, one or a few use cases and potential projects for the use
and implementation of AI will naturally emerge as more promising.

The decision of which AI use cases progress to the next stage is essentially a
management decision, typically made by a board or committee and should involve
key stakeholders such as IT, business unit leaders, and risk management teams.

Maintaining a collaborative approach during project selection can lead to


more informed, strategic decisions that align with the company's goals and
capabilities.

Once approved, the implementation planning phase begins, encompassing detailed


timelines, milestones, and the assignment of responsibilities.

11. Proof of Concept (PoC)

While a Feasibility Analysis and an AI Risk Assessment serve as an initial


assessment of the viability of AI use cases, typically conducted before project
approval, a Proof of Concept (PoC) takes place before the full-scale
implementation of an AI project.

It is designed to validate the technical feasibility of the proposed solution


before committing to full-scale development.

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AI Strategy: A Step-by-Step Guide

In AI projects, a PoC is an early and limited-scope implementation of the AI


solution.

Its primary objective is to provide tangible evidence of the AI concept's


feasibility and its potential to address specific challenges or achieve predefined
objectives.

During the PoC phase, organizations often utilize a reduced dataset or a


simplified version of the AI model to evaluate its performance and capabilities.

This approach serves as a risk mitigation strategy, enabling informed decision-


making and preventing significant resource allocation to unproven concepts.

To leverage the benefits of PoCs effectively, organizations should conduct


them for the most promising use cases, which were previously prioritized in
Step 7, Prioritize AI Use Cases.

Developing PoCs for these selected use cases involves creating small-
scale prototypes that showcase the value and feasibility of applying
AI to address specific business challenges.

12. Validation and Testing

To validate the Proof of Concepts in AI projects, a crucial step involves rigorous


testing and experimentation.

This phase is vital in determining the effectiveness and viability of the AI models
and solutions developed during the PoC stage.

During this validation process, organizations should actively seek feedback from
stakeholders, including business users, subject matter experts, and other
relevant parties.

This feedback loop helps evaluate whether the ML models deliver the expected
results and meet the predefined objectives.

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AI Strategy: A Step-by-Step Guide

Testing and experimentation can encompass various aspects, such as:

assessing the performance of the ML models against key performance


indicators (KPIs) and success metrics defined during the PoC initiation.

testing the robustness of the AI models concerning data quality,


consistency, and reliability when deployed on real-world data.

gathering input from end-users and stakeholders to refine the user


experience of the AI solution and align it with user expectations.

assessing that the AI system adheres to ethical guidelines and


regulatory requirements and evaluating the AI solution's impact on
privacy, fairness, and compliance with relevant laws and regulations.

evaluating the AI solution's scalability to ensure it can seamlessly


manage increased data volumes and user loads without compromising
performance.

benchmarking against industry standards and best practices to


pinpoint areas for enhancement and innovation.

conducting a thorough analysis of errors or discrepancies in the AI


models' predictions or outputs to gain insights into model limitations
and potential biases.

effectively integrating feedback and insights obtained from testing


and experimentation to refine the AI system.

Incorporating stakeholder feedback and conducting comprehensive testing


and experimentation are integral components of AI project validation.

This phase serves as a critical bridge between the Proof of Concept and the full-
scale implementation, ensuring that the AI solution is not only technically feasible
but also capable of delivering the desired business outcomes.

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AI Strategy: A Step-by-Step Guide

13. Cost-Benefit Analysis

Just as a feasibility study and Proof of Concept (PoC) play crucial roles in AI
project validation, conducting a cost-benefit analysis represents a pivotal step in
ensuring the viability and value of AI use cases.

While a feasibility study evaluates the technical feasibility and a PoC validates the
concept, a cost-benefit analysis delves into the financial aspects to assess the
potential return on investment (ROI) for each use case.

In the context of AI projects, a cost-benefit analysis involves a


comprehensive evaluation of various financial factors.

This includes not only the initial implementation costs but also ongoing
maintenance expenses.

Additionally, it takes into account the expected financial benefits


generated by the AI solution, such as increased revenue, cost
reductions, or operational efficiency improvements.

Beyond financial metrics, consider non-financial advantages, like enhanced


customer satisfaction or improved brand reputation, which can significantly
contribute to the overall value proposition.

By conducting a rigorous cost-benefit


analysis, organizations can make
informed decisions about resource
allocation, project prioritization, and
the overall feasibility of AI initiatives.

This analysis is a vital tool for assessing whether the potential gains outweigh the
investments, helping organizations select and prioritize use cases that align
with their strategic objectives and offer the most substantial value.

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AI Strategy: A Step-by-Step Guide

Stage 4: Implementation

14. Selection and Prioritization

The last steps in selecting AI initiatives involve meticulously evaluating and


choosing from the identified AI use cases, aiming to focus resources on those that
align most closely with the organization's strategic objectives and hold the potential
to deliver significant value.

The use case discovery and selection process isn't one-size-fits-all; it varies
based on an organization's size, available resources, and overarching
objectives.

In larger organizations, the breadth of resources and capabilities often allows for a
more comprehensive approach.

Robust feasibility studies, extensive proof of concepts (PoCs), and thorough


validation processes can be conducted across a broader spectrum of use cases.

This approach enables these organizations to make data-driven decisions while


exploring a wide range of possibilities.

Prioritization in this context is not just


about choosing the right projects; it's
also about ensuring that these
choices are well-documented and
guided by clear criteria.

This documentation is essential for maintaining transparency and


accountability within the team. It allows for a structured approach where
decisions are made thoughtfully and can be revisited in the future.

If circumstances change or new information emerges, the team can reevaluate


their choices and explore alternative or improved use cases.

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AI Strategy: A Step-by-Step Guide

By adopting this method, smaller teams can make significant progress with their AI
initiatives, even with limited resources.

It enables them to stay focused on their most impactful goals, ensuring that their
efforts are both effective and aligned with their broader business strategy.

A strategic roadmap for AI adoption


is typically developed after prioritizing
use cases, focusing on achieving
early and quick wins.

This roadmap lays the groundwork for


future AI capabilities and is aligned
with the organization's strategic goals.

Ideally, it is formulated during or after the Proof of Concept (PoC) phases.

In this process, business owners are responsible for steering the AI strategy, while
technical teams like data engineers work on specific PoC use cases.

This approach ensures that the roadmap is both strategically aligned and
grounded in practical, achievable steps.

15. Pilot Phase

A Proof of Concept (PoC) and a pilot phase are sometimes confused; they are
similar but not exactly the same.

A PoC is typically an initial stage to demonstrate the practical feasibility or


potential of an idea or project, often on a smaller scale and with limited
scope. It's used to validate technical aspects and the overall concept.

The pilot phase, on the other hand, comes after the PoC. It involves
implementing the solution on a slightly larger, but still limited, scale to test its
effectiveness and operational feasibility in a real-world environment.

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AI Strategy: A Step-by-Step Guide

The pilot AI system can also provide valuable insights into required change
processes inside the organization that are needed to deploy the system fully.

The pilot phase is about fine-tuning, identifying potential issues, and assessing
operational consequences and user acceptance before full-scale
implementation.

16. Execution and Monitoring

After the pilot phase, where the solution's effectiveness and operational feasibility
are tested on a limited scale, the focus shifts to full-scale execution.

The transition from the pilot phase to execution and monitoring in AI


implementation is a natural progression.

This process involves deploying the AI solution more broadly, integrating it


into everyday business processes, and closely monitoring its performance.

After deployment, continuous monitoring and optimization are essential to


ensure that the AI solution remains effective and adaptable to changing
business needs.

This phase involves regularly assessing the AI system's performance,


making necessary adjustments, and ensuring it continues to provide value in
line with the organization's evolving objectives by tracking its performance
against key metrics and KPIs.

Monitoring should be comprehensive, covering aspects like accuracy,


efficiency, and impact on business processes.

Regular performance reviews help identify any deviations or


underperformance in the ML models.

These reviews should be scheduled at regular intervals and after any


significant changes in the business environment or data landscape.

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AI Strategy: A Step-by-Step Guide

17. Iterative Process

Adopting a dynamic approach in AI strategy development is essential; it is not a


one-time endeavor.

Even after the initial implementation of an AI strategy, continuous monitoring


and evaluation of the organization's evolving needs and opportunities are
imperative.

This adaptive approach allows for timely adjustments to the strategy, ensuring
alignment with the organization's evolving goals. It requires continuous refinement
and adaptation.

As the market evolves and new technologies emerge, the AI strategy should
be regularly revisited and updated.

18. Steady Capability Building & Scale

Once a successful ML use case is established, the next step is to scale its
implementation across the organization or specific units.

Simultaneously, it is essential to continue exploring new use cases and iterate


on existing ones to maximize the benefits derived from AI.

Developing a plan to enhance your organization's AI capabilities systematically is


critical. This adaptive approach ensures the effective utilization of AI solutions over
time. It requires continuous refinement and adaptation, especially in response to
market evolution and the emergence of new technologies.

The core business strategy and AI capabilities should evolve, with leaders
progressively refining their goals to actively leverage AI and ML as tools for
gaining a competitive advantage.

This agile approach helps organizations stay ahead of changes and ensures
that AI initiatives remain effective and aligned with current and future
business objectives.

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AI Strategy: A Step-by-Step Guide

III. From Strategy to Action: Overcoming


AI Implementation Challenges with SaaS

A. AI Integration with SaaS Solutions

The path to successful AI implementation, while well-defined, often presents


challenges related to responsible use and seamless integration into business
operations. Notably, obstacles in team coordination and responsibility allocation
underscore the inherent complexity of AI implementation, demanding adept
handling for smooth integration into organizational processes.

Organizations can benefit significantly from leveraging Software as a Service


(SaaS) solutions to overcome these challenges. A well-designed SaaS platform is a
valuable resource, providing structured workflows, specific templates, and
guided processes.

This systematic approach assists teams in navigating each phase of AI


initiatives, ensuring clarity on tasks, timelines, and dependencies.

A comprehensive SaaS platform also fosters centralized collaboration, real-


time communication, and efficient task tracking, enhancing synergy across
departments.

Additionally, SaaS platforms streamline role assignment, task


management, and skill profiling, facilitating the identification and
allocation of responsibilities based on expertise.

The centralized repositories for document storage, version control, and


knowledge sharing within these platforms create a collaborative
environment, reducing the risk of information silos.

The built-in analytics and reporting features further enable organizations


to monitor project milestones, progress, and key performance indicators in
real time. This enables data-driven decision-making to optimize AI
initiatives.

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AI Strategy: A Step-by-Step Guide

In navigating the complexities of AI implementation, organizations will find that


SaaS solutions offer a comprehensive and effective approach, simplifying
processes, addressing ethical concerns, and aligning AI initiatives seamlessly with
business objectives.

B. Assessing SaaS Solutions

When assessing SaaS platform providers for AI implementation, organizations


should focus on key aspects to ensure the validity and reliability of the solutions.

Firstly, a comprehensive understanding of the platform's security measures is


crucial.

These measures encompass data security protocols, encryption methods, and


access controls. Questions about compliance with industry regulations, support for
ethical AI practices, scalability, integration capabilities, and ongoing support and
training should be addressed.

Additionally, evaluating data management, task tracking, workflow management


features, built-in analytics, and reporting functionalities is essential.

Furthermore, it is vital to inquire about the platform's adaptability to evolving


business needs, its ease of integration with existing systems, and its cost
structure.

Case studies demonstrating positive impacts and ROI can provide insights into the
platform's effectiveness.

Secondly, organizations should extensively evaluate the platform’s ease of use.

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AI Strategy: A Step-by-Step Guide

Only if the platform provides an effortless entry into AI strategy management will
your employees actively use it and benefit from the offered processes. The SaaS
solution should therefore come with a user-friendly design and provide a smooth
user onboarding and online help system.

As with any software, the SaaS solution will only provide value if it is used
regularly and integrates seamlessly with existing workflows.

Thirdly, organizations should explore the platform's approach to AI, data, and
project management.

It is important to understand how the platform handles data cleansing,


validation, and integration, along with the presence of a centralized
repository for collaborative purposes.

Evaluating task tracking, workflow management features, and the


platform's ability to set and monitor milestones and dependencies is
crucial for successful AI initiatives.

The built-in analytics and reporting features should facilitate real-time


monitoring and informed decision-making.

Moreover, inquiries about the platform's update and upgrade processes,


including a roadmap for future developments, can provide insights into its
commitment to staying current.

Finally, understanding the cost structure and potential additional costs and
seeking examples or case studies showcasing the platform's positive impact and
return on investment can guide organizations in making informed decisions about
their AI implementation strategy.

C. Mastering the Complexities: SaaS Solutions for Seamless


and Responsible AI Integration in Business Operations

Integrating AI into business operations demands a meticulous approach to


overcome inherent challenges, particularly in team coordination and responsibility
allocation.

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AI Strategy: A Step-by-Step Guide

Leveraging SaaS solutions proves instrumental, offering a systematic and


collaborative platform that provides much-needed templates and processes,
streamlines tasks, enhances communication, and ensures efficient project tracking.

SaaS solutions not only address complexity but also provide essential features for
role assignment, task management, skill profiling, and knowledge sharing,
facilitating responsible AI implementation aligned with organizational objectives.

The operationalization and coordination of Responsible AI practices present


significant challenges for organizations, especially when addressing diverse
dimensions such as fairness, maintainability, privacy, robustness, safety,
security, and transparency.

SaaS platforms emerge as valuable tools to navigate these challenges and


streamline RAI implementation.

SaaS platforms can contribute to meeting RAI objectives by providing


structured workflows and templates that guide organizations in
aligning AI practices with business values and societal expectations.

These platforms facilitate the systematic integration of RAI Guidelines into


the AI lifecycle, ensuring ethical, transparent, accountable, and fair AI
systems from development to deployment.

Moreover, SaaS platforms offer


centralized collaboration spaces,
enabling effective stakeholder
inclusion throughout the AI lifecycle.

This is crucial for fostering user


engagement and developing user-
centric and accountable AI systems.

As organizations navigate the intricacies of AI integration, the strategic use of


SaaS solutions emerges as a comprehensive and effective approach, simplifying
processes and fostering ethical AI practices.

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AI Strategy: A Step-by-Step Guide

Master your AI Strategy with Daiki


Daiki is an AI enablement platform built to help teams implement responsible
AI and achieve regulatory compliance.

Originating from a research project with the University of Vienna and machine
learning company Gradient Zero, Daiki was created to help teams successfully
implement AI projects and comply with regulations by incorporating the principles
of responsible AI into the development process.

Daiki tells you how to build and


use AI: We provide active help with
our “AI Recipes”: concise how-tos,
smart processes, templates, and best
practices for all important AI use
cases.

Daiki also serves as an integrated


document and quality
management system, ensuring
compliance, and integrates
seamlessly with most existing tools
and workflows.

The Daiki Copilot, based on our own private LLM, guides users through each step
of the process with context-sensitive, proactive guidance.

Get in touch to learn more about how Daiki can help your organization.

Authors

Katharina Koerner Jona Boeddinghaus


Corporate Development CEO & Strategy Lead

© 2024 Daiki GmbH


Contact us to learn
more!

Contact us: dai.ki


Kevin Michael Gibney, CSO
kmg@dai.ki

© 2024 Daiki GmbH

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