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ChatGPT, its GPT-4 iteration and the broader advancement of generative AI are raising the stakes for companies that are expected to incorporate this technology. CEOs, boards and top executives in such a spot should step back and meet the challenge with a big picture approach that systematizes a set of proven strategies.

AI as the next competitive weapon for business relevancy, and profitability means companies must transform from digital enterprises to intelligent enterprises. The latter successfully integrates AI, machine learning, data analytics and the Internet of Things (IoT) to drive innovation, optimize processes and create new revenue streams.

Begin by adopting an AI first mindset. Adapt your organizational structure to the reality that intelligence increasingly resides in many parts of the company. It further means nurturing and investing in talent accordingly and being cognizant of the regulatory and compliance pressures.

Also, think of Intelligent Enterprise as an augmented organization where AI and humans are complementary while adapting to the surroundings and competitive atmosphere. Its forward-looking. Its able to both exploit its current competitive advantages and explore and experiment with new innovations and ideas that emerge from its workforce. Good examples include the Ocado Smart Platform, an end-to-end e-commerce, fulfillment and logistics platform for grocers from the British online supermarket and tech company, and Netflixs leveraging AI to analyze data on viewer preferences and behavior. This has informed decisions about what types of content to produce and how to market it and has yielded hit series like House of Cards.

AI systems enable decision decentralization empowering employees with intelligence at their fingertips and allowing companies to shift responsibility to individuals closest to the outcomes of the decisions. Toyota pioneered decision decentralization in manufacturing, via Jidoka. Decentralization further enables different parts of the organization to fix technology flaws and hire their own experts. For example, the materials science company W.L. Gore & Associates is organized into self-managing teams under its lattice model with employees encouraged to take on different roles and responsibilities based on their interests and skills.

A vision for nurturing and enhancing talent is critical. A good model is Coca-Colas Data Science and Analytics Academy for employees across departments and job roles, which has helped optimize operations, improve supply chain management, and enhance customer experiences using AI-powered solutions.

Confidence also must be elicited in stakeholders and regulators. Decentralized intelligence and decision-making will behave in sometimes unexpected ways, as will government regulations of AI-based systems and decisions. Furthermore, different countries may have different perspectives on societal impacts of AI-based systems (privacy, autonomy, etc.). Microsoft has a model for such mitigation with its AETHER (AI and Ethics in Engineering and Research) committee of experts in computer science, philosophy and law to review and advise on legal and ethical implications.

Humancentric not artificial intelligence is most essential to success and survival in this emerging era. As a recent study involving 1,500 firms in a range of industries indicates, indicates, the largest rate-of-return will be made with Human 2.0 humans and AI-based machines working together to yield intelligent decisions, i.e., true intelligence.

To position your company for maximum value from integrating the gains from technology, especially AI with human ingenuity and capabilities, refer to the checklist below as an AI Manifesto for the Intelligent Enterprise CEO:

AI is human augmenting rather than human replacing. AI-based automation may be tempting as a panacea for cutting costs, and this may be of value in the short run. But humans connect with customers better. As future technology and markets change constantly and rapidly, customers will increasingly make decisions based on trust and empathy.

G. Anand Anandalingam (ganand@umd.edu) is professor of management science at the University of Marylands Robert H. Smith School of Business, and Alwin Magimay (alwinmagimay@hotmail.com) is global head of AI for PA Consulting, London, U.K.

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An 'AI Manifesto' for CEOs; here's how to approach artificial ... - Baltimore Sun